CBRE Group Inc. (CBG) announced the acquisition of an Oklahoma-based commercial real estate services firm, which has served as its affiliate since 1999. This company – CBRE | Oklahoma – has been offering leasing, investment sales, property management and corporate services, managing over 18 million square feet in the region.
The acquisition also brings on board Tom O’Brien, the co-founder of the firm. He would focus on strategic client relationships. Senior Leaders like Cary Phillips and Lori Bryant would join as Managing Director of Brokerage Services and Asset Services, respectively. In addition to the senior executives, the experts and staff of CBRE | Oklahoma will also form a part of CBRE.
The move comes in the wake of CBRE Group’s focus on enhancing its geographic coverage and broadening the service offerings. Particularly, the Oklahoma region has been attracting attention for its positive business environment. Benefiting from the energy, aerospace and defense contracting sectors, it is now referred to as a growing business hub in the Southwest.
Notably, strategic in-fill acquisitions have played a vital role in enhancing CBRE Group’s geographic coverage, and also broadening and strengthening its service offerings. Moreover, the company has opted for larger, transformational deals driven by macro policies like that of the UK-based Norland Managed Services in 2013.
In the first nine months of 2014, CBRE accomplished several in-fill acquisitions. This included a commercial real estate service provider in Chicago, a hospitality/lodging industry consultant and the company’s former affiliate in Louisville, and project management companies in Germany and Australia. Again, in Oct 2014, the company acquired a shopping center management, leasing and consulting company in Zurich, Switzerland.
As market conditions continue to improve, we believe that such opportunistic acquisitions would serve as growth drivers, supplementing the company’s organic growth.
Currently, CBRE Group has a Zacks Rank #2 (Buy). Investors interested in the real estate operations may also consider stocks like NorthStar Realty Finance Corp. (NRF), Jones Lang LaSalle Incorporated (JLL) and Kennedy-Wilson Holdings, Inc. (KW). While NorthStar Realty sports a Zacks Rank #1 (Strong Buy), both Jones Lang LaSalle and Kennedy-Wilson Holdings hold the same Zacks Rank as CBRE Group.
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