CB Richard Ellis Jobs Moving Out of State After Trammell Deal

Orange County Business Journal, May 21-May 27, 2007 by Mueller, Mark

REAL ESTATE: Support work going to central, Midwest states

CB Richard Ellis Group Inc., the largest commercial real estate brokerage and property manager operating in Orange County, is moving about a third of its local workers out of state.

Some 200 jobs in one of the Los Angelesbased company's Newport Beach offices are being relocated to central and Midwest states, according to company officials.

The jobs being moved are part of CB Richard Ellis' shared services division, which includes accounting positions that handle the company's individual and corporate clients.

Some human resources and technology also are being transferred.

The company's brokerage and property management operations aren't affected, the company said.

The relocation results from CB Richard Ellis' $2.2 billion buy of Dallas-based Trammell Crow Co. in December.

CB Richard Ellis decided to move the shared services positions from Newport Beach to Dallas, Memphis and Minneapolis after buying Trammell Crow. A few regional positions also moved to Los Angeles, the company said.

"In light of the geographic spread of our operations, it has proven more effective for people performing national functions to be located in the middle of the country, where they can efficiently service all time zones," a CB Richard Ellis statement said.

According to a filing with the Employment Development Department, 210 workers in Newport Beach are being affected.

Some employees are making the move to other states. Most have decided to stay and have accepted a severance package, according to sources familiar with the situation.

Some could be rehired by CB Richard Ellis' property management group.

Many workers already have found jobs with other companies in the area, according to CB Richard Ellis.

The company still has about 440 people in Newport Beach and Anaheim. That includes roughly 100 brokers and 290 people in the company's property management group, according to the latest figures provided to the Business Journal.