Brookfield fires Cushman & Wakefield
Brookfield fired Cushman from handling its office and industrial leasing. Apparently this was triggered by Cushman backing out of a deal to relocate their NYC office to 660 Fifth Ave due to cost cutting measures... Does anyone know if there is more to the story here? It seems kind of petty and retaliatory to drop Cushman over this.
How bad of a spot is Cushman in right now? Many of their Capital markets guys have also been headhunted by Newmark recently.
Anyone know who Brookfield will go with for leasing now?
Why is it petty and retaliatory? Or rather, it is, but why is it unjustified? Cushman is a broker - almost by definition, that means they're easily replaceable and don't provide any real value. Reneging on a deal isn't the end of the world, but reputation matters, and Cushman is implicitly telling their client that they cannot be trusted to keep their word if it will hurt their bottom line. Why in the world should Brookfield or anyone else maintain a relationship with someone who is willing to screw them over at the drop of a pin?
Fair enough. I was just wondering if there was anything more to the story - maybe Brookfield had already been unhappy about Cushman's performance and this was the last straw. It seems like a major decision on Brookfield's part if their relationship was otherwise good. It does seem foolish on Cushman's part to back out of a lease with such a major client, but it is also understandable given the current state of the market that it wouldn't financially make sense for them to relocate to a newly renovated building where rents would be anywhere from 100 to 175+/SF (not sure which floors they would have signed on).
Brokers are a commodity. Either do what the client wants or get dropped.
Lmao. If they were getting leases done they were literally providing value to Brookfield, both on the leases and in terms of Brookfield not having to field a massive in-house team.
Or do you really think Brookfield can lease all of their assets without brokers? One of the fucking dumbest things I’ve read on here.
No, they need to be doing better than a competitor to be "providing value." If C&W isn't doing a better job than anyone else, then there is no reason for Brookfield to continue employing them.
No, I made it very explicit that they're easily replaceable, which is why they provide little value.
The question isn't "can Brookfield do this themselves," but "why should Brookfield continue to use Cushman." You have no intelligent answer to the actual question, which is why you've propped up this absurd straw man argument that somehow the alternative to employing Cushman is to build out an in-house team. If this is the best you've got, you need to go find a couple teenagers to talk down to, because any intelligent person is going to laugh at an argument this poorly constructed.
C&W just told Brookfield to fuck off; they've done everything but put up a sign that says "we view you as a source of income and nothing more, and we are unwilling to lose one red cent to keep your business." That's fine, they don't have to have any loyalty to their clients, but why in the world should Brookfield continue to employ them when they know that this is the service they'll get? At the very least, going to a JLL or CBRE means slightly better treatment. As I said, C&W is a brokerage, so there is no competitive advantage they have over any other brokerage in terms of their business model. Seems exceptionally shortsighted to throw away a lucrative business arrangement with a huge landlord to save a few bucks, but hey - I guess that's why I work in an industry that rewards keeping your word!
It was a surprise to CW.
From my understanding Brookfield had fired them from one of their NY office towers a few weeks ago and then made the decision to do a broader firing.
Don’t think it’s a performance issue. 2 Manhattan West pretty much all leased out last year with CW repping Brookfield and a good portion of 660 was also leased last year.
As far as who Brookfield will go to, probably whoever the top office leasing team is at CB or JLL in NY.
I didn't know Cushman did all of Brookfield's leasing in every market. What if it's a market where Cushman doesn't have a strong presence. I assume there was some cost advantage rather than synergy to compensate for that.
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