CBRE affiliates cut loose
CBRE Inc. is cutting ties with its Virginia affiliates.
CBRE Inc. and CB Richard Ellis of Virginia Inc. have agreed to end their affiliate agreement covering the markets of Charlottesville, Fredericksburg, Newport News, Norfolk, Richmond and Virginia Beach on Dec. 31, according to a two-sentence announcement Monday morning.
CBRE Inc. said it will operate as a wholly-owned business in all Virginia markets starting in January, according to the announcement. A CBRE Inc. spokesman would not comment beyond what was in the announcement.
Monday afternoon, J. Scott Adams, a CBRE regional president of the mid-south affiliate offices, issued a statement on the split.
“Today marks an important day in our company’s exciting future,” Adams said in the statement. “We believe we have substantial growth opportunities both within Virginia and beyond.”
CBRE’s affiliates in Virginia are private companies that license the CBRE brand. Adams said since the affiliates and CBRE Inc. have separate operations and support services, there would be minimal impact on the business. Adams said through Dec. 31 the Virginia affiliates would continue to use the CBRE brand. He said after that there would be a new structure for the business. Adams declined to elaborate on what the new structure might look like.
“This announcement was fully expected given the mutual agreement by the two companies to the December 31, 2018 date,” Adams said.
The announcement of the split comes weeks after some CBRE affiliate executives announced the launch of an unaffiliated multifamily property management group. Adams said the announcement of the split was “completely unrelated” to the new multifamily property management group.