CBRE to Manage Brookfield’s US Office Portfolio

CBRE has joined forces with Brookfield Properties to provide management services through its new Investor Portfolio Management platform. The firm will manage the entirety of Brookfield’s U.S. office portfolio which totals more than 65 million square feet across some 85 buildings, making the real estate company the cornerstone client of CBRE’s portfolio management business. The partnership will go into effect on April 2, Commercial Observer reported.

The CBRE deal comes as Brookfield was particularly shaken by office sector woes unfolding in slow motion. The firm defaulted on loans backing Los Angeles office towers worth around $1.1 billion, as well as several office properties in the Washington, D.C., area—backing $161.4 million worth of loans.

Even so, Brookfield made some headway recently with several large leases, including a 245,000-square-foot deal in Houston and a 74,000-square-foot commitment in Manhattan.

The CBRE deal, up close

Under the agreement, CBRE will handle building operations, property accounting, procurement services and building technologies. Brookfield will retain the management of cash flow and investments.

In prepared remarks, Brookfield Properties President Greg Meyer said the partnership is slated to improve operational efficiency and allow the company to focus on generating value for investors.

The deal ought to prevent turnover of employees in the case of a property sale, as CBRE will become their employer, according to the same source. CBRE will also leverage its operating partners in serving Brookfield Properties, including data platform Deepki, coworking space provider Industrious and tenant platform VTS.

CBRE has some 7.3 billion square feet of commercial real estate under management globally across various asset types. The firm’s footprint increased by 2.8 percent year-over-year as of 2023, continuing to be the nation’s largest property manager.