CBRE Group Takes Over Whitestone Research - Analyst Blog

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As part of its efforts to enhance business, CBRE Group, Inc. (CBG) disclosed the purchase of the leading facilities cost analytics firm, Whitestone Research Corporation. The move is expected to add to CBRE Group's facilities cost analytics expertise in advising both occupier and investor clients regarding facilities costs.

In fact, with this buyout, CBRE Group, which currently manages more than $32 billion in operating expenses for client facilities, can leverage on the widely recognized analytical tools in the industry, CostLab - which is one among Whitestone's proprietary technologies. 

This tool forecasts operating and maintenance costs for each asset type in more than 400 locations across the world. It offers comprehensive cost comparisons for maintenance and repair, custodial, energy, grounds management, pest control, refuse removal, road clearance, security, telecommunications as well as water and sewer functions. 

Earlier this month, CBRE Group boosted its service offerings in San Francisco with the purchase of commercial real estate services firm, The CAC Group. CAC acts as an agent for approximately 18 million square feet while it manages about 11 million square feet of office properties in downtown San Francisco, the greater Bay area and Seattle (including Bellevue).

We consider the acquisition to be a strategic one, given the opportunity to leverage on the San Francisco market - one of the strong and growing office markets of the country. Moreover, CAC has an increasing presence in the Seattle/Bellevue area, thereby providing CBRE sufficient growth prospects.

In the recent past, CBRE Group has been actively engaged in deals for expanding business in the U.S. and U.K., and made a number of acquisitions including CB Richard Ellis Carmody, KLMK Group, Alan Selby & Partners. The company is also in a deal to acquire U.K.-based commercial building technical engineering services provider, Norland Managed Services Ltd. for enhancement of services and the widening of its corporate outsourcing platform in Europe.

We believe that such opportunistic acquisitions would be growth drivers, supplementing the company's organic expansion. Moreover, the company's investments in people and systems augur well.

CBRE currently has a Zacks Rank #3 (Hold). Investors interested in the real estate operations industry may consider stocks like E-House (China) Holdings Limited (EJ), FirstService Corporation (FSRV) and Kennedy-Wilson Holdings, Inc. (KW). All these carry a Zacks Rank #1 (Strong Buy).

As part of its efforts to enhance business, CBRE Group, Inc. ( CBG ) disclosed the purchase of the leading facilities cost analytics firm, Whitestone Research Corporation. The move is expected to add to CBRE Group's facilities cost analytics expertise in advising both occupier and investor clients regarding facilities costs.

In fact, with this buyout, CBRE Group, which currently manages more than $32 billion in operating expenses for client facilities, can leverage on the widely recognized analytical tools in the industry, CostLab - one among Whitestone's proprietary technologies. This tool forecasts operating and maintenance costs for each asset type in more than 400 locations across the world.  

Earlier this month, CBRE Group boosted its service offerings in San Francisco with the purchase of commercial real estate services firm, The CAC Group. CAC acts as an agent for approximately 18 million square feet while it manages about 11 million square feet of office properties in downtown San Francisco, the greater Bay area and Seattle (including Bellevue).

We consider the acquisition to be a strategic one, given the opportunity to leverage on the San Francisco market - one of the strong and growing office markets of the country. Moreover, CAC has an increasing presence in the Seattle/Bellevue area, thereby providing CBRE sufficient growth prospects.

In the recent past, CBRE Group has been actively engaged in deals for expanding business in the U.S. and U.K., and made a number of acquisitions including CB Richard Ellis Carmody, KLMK Group, Alan Selby & Partners. The company is also in a deal to acquire U.K.-based commercial building technical engineering services provider, Norland Managed Services Ltd. for enhancement of services and the widening of its corporate outsourcing platform in Europe.

We believe that such opportunistic acquisitions would be growth drivers, supplementing the company's organic expansion. Moreover, the company's investments in people and systems augur well.

CBRE currently has a Zacks Rank #3 (Hold). Investors interested in the real estate operations industry may consider stocks like E-House (China) Holdings Ltd ( EJ ), FirstService Corp. ( FSRV ) and Kennedy-Wilson Holdings, Inc. ( KW ). All these carry a Zacks Rank #1 (Strong Buy).



CBRE GROUP INC (CBG): Free Stock Analysis Report

E-HOUSE CHINA (EJ): Free Stock Analysis Report

FIRSTSERVICE CP (FSRV): Free Stock Analysis Report

KENNEDY-WILSON (KW): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: CBG , EJ , FSRV , KW

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