Jeff Eaton says that both NorthMarq Real Estate Services and Cushman & Wakefield Minnesota got what they wanted from last month’s merger of the two companies: Cushman after the move grabbed the number-one market position in the Twin Cities. NorthMarq, meanwhile, gained a global reach that it did not have before.
“Each party got what it was looking for,” said Eaton, who is the new head of the newly merged company. “Both parties received a significant benefit as a result of this merger.”
And that, Eaton explains, is why the merger of two of the Twin City’s largest commercial real estate firms closed without incident last month. Regardless of the benefits that both firms receive, though, one thing is clear: The Minneapolis/St. Paul-area commercial real estate landscape suddenly looks a lot different now that NorthMarq Real Estate Services and Bloomington, Minn.-based Cushman & Wakefield Minnesota have agreed on a merger.
The new firm, called Cushman & Wakefield/NorthMarq Real Estate Services, became official Sept. 30, when the merger closed.
NorthMarq’s sister company, NorthMarq Capital — which provides loan services — is not part of the newly merged company. NorthMarq Capital will continue to operate as its own separate entity.
Eaton, who formerly held the title of president of NorthMarq Real Estate Services, told Minnesota Real Estate Journal that the merger has strengthened both companies involved in the deal.
Before the merger, NorthMarq Real Estate Services held the top position in the Twin Cities by a large margin in facilities management. When it added the portfolio from Cushman & Wakefield Minnesota, the newly formed company increased its lead in this market segment. Now that NorthMarq Real Estate Services and Cushman have merged, the newly formed company easily boasts the largest brokerage team in the Minneapolis/St. Paul region, too, with 85 brokerage positions.
“We looked at a variety of options before making this move,” Eaton said. “We had a number of invitations to do other kinds of transactions with other companies. This was the best brand. There were other offers out there that were more franchise-oriented. They didn’t have the same appeal. We wanted something more substantive. For us, we had this solid market position already, but we did not have the national and global reach that Cushman has. That is the big gain for us, to become part of the only three integrated global platforms in the world. We are now part of one of the premier brands out there.”
The new Cushman & Wakefield/NorthMarq Real Estate Services will feature a staff made up of employees from Cushman & Wakefield’s Minnesota office and NorthMarq Real Estate services.
The new company will also become the Twin Cities region’s largest property facility management firm, with 30 million square feet of properties under management in Minneapolis/St. Paul and surrounding areas. The firm has more than 55 million square feet under management nationwide.
This merger involves two companies that have long been part of the Twin Cities’ real estate industry. NorthMarq Real Estate Services, of course, has long been one of the most important players in the Minneapolis/St. Paul commercial real estate business. Cushman & Wakefield is no newcomer to Minnesota, either. The company has had a presence in the state since 2002, when it entered Minnesota under the leadership of Clint Miller. Miller has joined the newly merged venture as a member of its senior leadership team.
“Forging this joint venture with NorthMarq provides us with immediate scale and scope in Minnesota,” said Jim Underhill, Cushman & Wakefield’s chief executive officer for the Americas. “(It will) be a great fit for our firm from day one.”
Eaton said that the merger will better position both companies as they try to work through what remains a challenging commercial real estate landscape in the Twin Cities.
“We now have the ability to better service the larger clients, especially the larger global corporate clients that are based here in the region,” Eaton said. “We have more than our fair share of large corporate clients on a per-capita basis in the Twin Cities. We now have a stronger offering to present to these kinds of corporate clients. There are a number of national and global investors out there who have assets in the Twin Cities or are interested in acquiring assets here. This merger gives us a better chance to gain their business. It gives us an opportunity to increase our market share in some key areas.”
