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DALLAS-Baylor Health Care System has inked a six-year contract with CB Richard Ellis to oversee nearly 10.3 million sf of medical office and hospital space. The best and final for the one-stop shop contract had pitted CBRE against against Cushman & Wakefield Inc., Jones Lang LaSalle and Lillibridge Healthcare Services.

Trammell Crow Co. had been the long-time contract holder, but the deal went out for bid in July 2006 “to make sure it was the most cost-effective,” Steve Horn, vice president of real estate for the Dallas-based Baylor, tells GlobeSt.com. “It was a true competition. All of the companies did an excellent job in their presentation. All had strong points. At the end of the day, CBRE had strengths in all areas not just one or two.” Baylor invested nearly 10 months into the decisionmaking and negotiations.

The contract covers facilities, project and construction management, real estate accounting, acquisitions and dispositions and leasing. Horn says the TCC team, now part of the CBRE camp, remains the same. Jeff Cox is the alliance director of the 200-member team based in Dallas. The contract also puts the CBRE team at its side for development and site selection, including any third-party projects in which Baylor would be a tenant.

Baylor, like its competitors, has been particularly active in staking new grounds in high-growth suburban markets in North Texas. Its 13-hospital network now spans 412 acres in seven counties–and it’s steadily growing.

Horn says Baylor’s executive team considered splitting the contract. “We were looking at all alternatives,” he explains, citing economies of scale as the reason that it landed once again with one shop.

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