by Dan Rafter
Another huge merger has hit the commercial real estate industry, this time between national CRE firms Cushman & Wakefield and DTZ.
DTZ officially closed its purchase of Cushman & Wakefield this morning. The newly resulting Cushman & Wakefield now boasts a combined total of $5 billion in revenue, 43,000 employees, more than 4.3 billion square feet under management and $191 billion in total transaction value.
Brett White will lead Cushman & Wakefield as its chairman and chief executive officer. While Tod Lickerman will serve as its global president. An investor group led by TPG, PAG and OTTP is the majority owner of this new version of Cushman & Wakefield.
White called the merger a “game-changing event.”
“Both legacy firms had been aggressively growing their respective platforms and deepening their reach into the market with new acquisitions and talent. Now we have the opportunity to see these ambitions come together.”
Cushman & Wakefield now operates in more than 60 countries.
The impact of the DTZ and Cushman & Wakefield merger is already being felt in the Midwest, where several Cushman & Wakefield affiliates might decide to leave the brand in markets in which DTZ already operates a commercial real estate brokerage.
In Kansas City, Kessinger Hunter & Co. has already decided to end its affiliation with Cushman & Wakefield. This change took effect Sept. 1.
In a press release, Kessinger Hunter officials pointed to the sale of Cushman & Wakefield to DTZ as the reason for the change. DTZ already has an office in Kansas City.
“While we have enjoyed our relationship with Cushman & Wakefield, the merger created an overlap in services,” said Chuck Hunter, chairman with Kessinger Hunter. “We decided it was in our best interests to remain independent. We truly believe that our independence is one of the primary reasons we have been so successful for so many years.”
Don’t expect Kessinger Hunter’s announcement to be the last. There are many Midwest markets in which Cushman & Wakefield and DTZ both operated brokerages. Many of the CRE firms in these markets might decide to follow Kessinger Hunter’s path and operate independently.