LANSING, MI-The state of Michigan has chosen CB Richard Ellis to serve as its real estate services provider, overseeing its 14-million-square-foot portfolio. The multi-year contract marks a departure for the state from its previous service provider, Jones Lang LaSalle, sources say. CBRE will provide lease administration, strategic planning, lease tracking/auditing, marketing assistance, and leasing, acquisition and disposition services.

“The state put out an RFP and we responded and went through a series of meetings,” John Latessa, managing director out of CBRE’s Detroit office. “Ultimately we were selected for our unique ability to cover the entire state of Michigan was compelling to the state. There was a large number of people competing for this business and the reason the state selected us was our strong presence throughout all the markets in the state.”

CBRE operates offices out of Detroit, Grand Rapids and Lansing, and is collaborating with the 25 offices of Traverse City, MI-based Coldwell Banker Schmidt for support to extend its reach into northern Michigan and the Upper Peninsula.

The Michigan account management team is based in Lansing, MI, led by Van Martin, Eric Rosekrans, and Tricia Foster and supported by Thomas Jamieson; while the Grand Rapids team is led by Drew Miller, and the Detroit team by Latessa and Michael Gerard. The assignment will also receive report from CBRE’s Washington, DC-based Public Institutions and Education Solutions group, lead by Michael McShea, which specializes in work with states to shape their real estate strategies.

“The state’s biggest goal is to optimize their portfolio and make sure they aren’t using more space than they need,” Latessa says. “They want to achieve the best rental rates and look at possibly selling off properties they don’t need or consolidation opportunities.” Latessa says the state’s portfolio is an equal mix of leased and owned properties, and CBRE will be pursuing options to exit some of the 550 leases to consolidate into owned properties.

Jones Lang LaSalle could not be reached for comment on state’s decision to reassign the portfolio to CBRE.

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