CBG to Offer Services to NYX and AIG - Analyst Blog

CB Richard Ellis Group Inc. (CBG), the world's largest commercial real estate services firm (on the basis of 2009 revenues), was recently selected by NYSE Euronext Inc. (NYX) to provide real estate transaction and facilities management services for its entire portfolio in the U.S. and Europe.

With the deal, CB Richard Ellis will offer its services across three million square feet of space of one of the leading global operators in the financial markets.

In another significant development, CB Richard Ellis was also selected by American International Group, Inc. (AIG) to provide facilities, project management and advisory services for its global portfolio. The strategic move was aimed at reducing operating costs of AIG by utilizing CB Richard Ellis' intellectual capital and technology resources. 

The company signed 33 long-term real estate outsourcing contracts (including 19 new clients) during third quarter 2010. With improved performance across all geographic regions and almost all business lines, CB Richard Ellis signed about 45 new contracts during the first nine months of 2010. We remain encouraged by indications of stabilization and recovery of market conditions.

CB Richard Ellis is the global market leader in commercial real estate brokerage and advisory services for property leasing and sales, forecasting, valuations, origination and servicing of commercial mortgage loans, as well as project and real estate investment management.

The company has a broad range of real estate products and services, and an extensive knowledge of domestic and international real estate markets that enables it to operate as a single-source provider of real estate solutions.

CB Richard Ellis offers a range of services to occupiers, owners, lenders and investors in office, retail, industrial, multi-family and other types of commercial real estate assets globally under the CB Richard Ellis brand and provides development services under the Trammell Crow brand.

We maintain our Neutral rating on CB Richard Ellis, which presently has a Zacks #3 Rank translating to a short-term Hold recommendation and indicates that the stock is expected to perform in line with the overall U.S. equity market for the next 1−3 months.

 
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