The General Services Administration is scrapping its practice of awarding national contracts to brokerage firms to get better leasing deals for the federal government, known in the federal leasing business as the National Broker Contract...
Here's a look at some of the key components of the new GLS:
Zonal, not national: The GSA has scrapped the very concept of a handful of firms being awarded national firms — including CBRE and JLL — in favor of four zones. The idea, Wisner said, is that the real estate brokerage industry has consolidated significantly since the NBC was launched. Of the initial NBC brokerages, for example, Jones Lang LaSalle Americas Inc. acquired the Staubach Co. and now goes by JLL, CBRE Group Inc. acquired the Trammell Crow Co., and Julien J. Studley Inc. was acquired earlier this year to become Savills Studley. That consolidation has made it much harder for smaller, regional firms to compete on the same level for national contracts. By going zonal, Wisner said, that opens the door to increased competition...A closer look at the GSA's new approach to using outside brokers
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