Home News Avison Young Adding 235 CRE Pros In Major Acquisition From Madison Marquette

Avison Young Adding 235 CRE Pros In Major Acquisition From Madison Marquette

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The Era of Mega Consolidation in Commercial Real Estate Brokerage may be overbut service companies continue to look for ways to grow through strategic acquisitions.

Latest Example: Based in Toronto Avison Young Agreed to acquire Washington, DC-based developer’s office and industrial property management, agency leasing and project management service lines. Madison Marquettethe company announced on Thursday.

Bisnow/John Bannister

Madison Marquette Chairman Amer Hammour

The acquisition and partnership agreement, which is expected to close by September, strengthens Avison Young’s brokerage and management presence in Texas and California, as well as on the East Coast. will have more than 20 million SF of real estate under management and will add 235 team members, ranging from brokers and managers to engineers and accountants.

Terms of the acquisition were not disclosed at the time of writing.

Madison Market CEO Vince Costantini said: Bissnow In an interview Thursday, the company’s decision to sell the service line was largely due to the competitiveness of its global commercial office brokerage business.

“We determined six months ago that the office services sector is increasingly dominated by giants putting in an enormous amount of technology. ‘ said Costantini. “Looking back, the scale we need is huge. We need 100M SF. Just going from 20 to 40 is not enough.”

Instead, Madison Marquette plans to strengthen its investment management and advisory services resources focused on the retail, mixed use, multifamily, office, healthcare and senior living categories.Chairman Madison Marquette Amel Hamour said in a press release.

“We maintained a retail-focused management team, a leasing team. We have a long history.

Key Madison Marquette leaders joining Avison Young include: Wade Bowlinwas appointed Principal and Managing Director, Brenda Dohertyemployed as Principal and Director of Texas Property Management Services, and Jim Prowlserving as Principal and Director of the Western Region.

Avison Young has no chance of layoffs due to the acquisition of the service, company spokesperson Sandra Hill wrote in an email. Leverages analytics, technology and a global real estate intelligence platform to deliver client roster for Madison Marquette.

“What’s really unique about this transaction is that it doesn’t end with the closing of the acquisition,” Hill wrote in an email. This is a partnership with Madison Markets that enhances the potential of his innovative data platform, AVANT, as an investment tool. “

Avison Young manages 11.2 million SFs in 54 properties in Houston, 1 million SFs in 14 buildings in Dallas, 27 4.2 million SFs in California, 2.5 million SFs on the East Coast, and 1.2 million SFs primarily in class or Inherit the lease.downtown office building Honolulu, according to the release. Avison Young will also assume management of approximately 170 ongoing projects.

The sale of Madison Marquette’s offices and industrial division took place over four years ago After the company merged with PM Realty GroupAt the time, the $7 billion marriage was hailed as a way to grow in markets like Atlanta and Dallas that Madison Marquette had long hoped to expand into.

The merger of PMRG also created Madison Marquette. The Wharf DC — A more diversified platform for other commercial real estate assets, including office and medical properties. Many of the professionals who joined from PMRG are now on their way to Avison Young.

“I don’t think it’s new [Madison Marquette] Ownership wanted to be involved in office, industrial and property management businesses. They really focus on retail. ” Bill WegortHe joined the PMRG merger last year after retiring as Southeast’s President of Property Services at Madison Market. “So it seems logical to exit that business. They can focus on high-end retail.”

The news of the acquisition comes just weeks after Newmark CEO Barry Gosin. throw cold water on rumors Regarding the potential merger of Newmark and Cushman & Wakefield.industry analyst said Bissnow Large brokerage firms are likely to focus on acquiring local firms, specific teams, and service niches to bolster weaknesses in their existing platforms.

“The strongest market that Madison still has is PM Realty Group’s original headquarters in Houston. [Avison Young] To strengthen our big, key markets,” says Weghorst. “You can always add property management and it will add to your earnings.”

Proceeds from the sale will flow into Madison Market’s investment pool for future co-investment acquisitions, especially as rising interest rates and cap rates create new opportunities, Costantini said. Some of the opportunities are: Convert more office buildings into residential or mixed-use projects.

“We see some different opportunities in housing and retail,” he said. “In fact, the market is volatile right now, so there are some opportunities that are growing.”

Update, Aug. 18th at 3:45 PM ET: This article has been updated to include comments from Vince Costantini, CEO of Madison Market.

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