In a quiet deal, global bank Citigroup has tapped Manhattan-based Cushman & Wakefield to manage all 27 million square feet of the company’s commercial property in the U.S., including its Tribeca headquarters.
The agreement reportedly means Cushman will replace real estate firm JLL, formerly known as Jones Lang LaSalle, as the sole U.S. facilities manager. That includes management of the financial giant’s headquarters in the 39-story office tower at 388 Greenwich Street.
JLL didn’t pursue the contract, the Wall Street Journal reported. The firm will continue to manage Citigroup’s properties in Mexico, according to the article.
The agreement comes as several large real estate firms are looking to increase the revenue garnered from facilities management. Such building management is affected less by changes to the economy and therefore a more stable source of income than commission revenue from deals, according to the paper. Cushman itself has grown its share of that market as of late. The firm managed more than 1 billion square feet of commercial space last year for the first time ever, a jump from 716 million square feet in 2010, the paper reported.
Cushman was also brought on earlier this year to manage flagship retail of the old New York Times building at 229 West 43rd Street, as previously reported. [WSJ] — Angela Hunt