As Firms Move to Outsource Project Management, CBRE Inks Deal with Cisco

By: Tonie Auer, Contributing Correspondent

As companies work to streamline operating efficiencies and cut costs, the outsourcing of services has become increasingly popular, and real estate services are high on the priority list. In the latest high profile outsourcing, CB Richard Ellis Inc. has agreed to a deal to provide project management services for Cisco Systems.

Under a multi-year agreement, CBRE will manage global coordination and delivery of all projects for Cisco. Potential project types range from fit-out of small field offices to large-scale campus development to complex data center construction. Locations supported range from Cisco’s San Jose headquarters campus to outposts in emerging markets. Overall, CBRE will oversee capital construction projects within Cisco’s 506 locations spanning 87 countries and totaling 23.6 million square feet.

A CBRE spokesman told CPE “there seems to be momentum in the market for companies looking for expertise to help them with their real estate management across the spectrum. Our global platform is producing significant assignments as a result of that.”

The consolidation of project management under CBRE is an important initiative within a larger global resource optimization program driven by Cisco Workplace Resources, according to information from CBRE. The optimization program will leverage outsourcing partners, improve cost, enhance performance and promote consistency worldwide.

The Cisco-CBRE relationship began in 1999 and includes the provision of facilities management, tactical space planning, and move management services within select Cisco sites. In addition CBRE is a longstanding customer utilizing Cisco technology to support its business operations.

CBRE had been growing this product services line with success this year, the spokesman said. RREEF selected CBRE and Transwestern to take over direct property management of the office and industrial property portfolio currently managed by RREEF for its clients. CBRE has been assigned an office and industrial portfolio totaling approximately 70 million square feet

And West Penn Allegheny Health System recently signed on with CBRE for facilities, project and transaction management, lease administration and strategic planning. WPAHS occupies approximately 6 million square feet in 250 buildings. Additionally, Automatic Data Processing, Inc. (ADP) contracted with CBRE to provide facilities management services for ADP’s 6.7 million square foot portfolio. The exclusive five-year assignment will cover ADP’s more than 200 facilities across the U.S. The selection marks the first time ADP has outsourced management of its corporate facilities.

CBRE’s Global Corporate Services business also added or expanded relationships with clients including Cox Enterprises, Nokia, Nissan and Ontario Realty Corporation this year, the CBRE spokesman said.