American Express announced last week that Dallas-based Trammell Crow is to take over all its real estate operations in the Americas under a 10 year deal.
Financial details of the agreement were not released but Trammell Crow say this is their largest ever outsourcing assignment. It will take over the management of about 14.4 million square feet of American Express facilities and about 500 American Express employees will transfer during this year.
"We are delighted to partner with Trammell Crow," said Tom Meador, Senior Vice President of American Express' Global Real Estate Department. "Their platform of comprehensive real estate services made the company an ideal choice for our real estate operations. By outsourcing to Trammell Crow, we can reduce our real estate operating costs, while maintaining quality service."
"This agreement affirms the growing trend toward real estate outsourcing as the world's leading corporations seek to reduce corporate occupancy costs, improve processes and reporting and focus on core business competencies," said Bill Concannon, President and Chief Executive Officer of Trammell Crow Corporate Services.
With the addition of the American Express operations, Trammel Crow now operates more than 180 corporate facilities. Its outsourcing business was up by 44 percent in 1999 and accounted for about $17 million of the company's income before taxes. to declare that it will allocate more of its resources to the business in 2000.
Trammell Crow Corporate Services is a subsidiary of Trammell Crow Company and is a leading real estate services provider dedicated to creating innovative outsourcing solutions for corporate, healthcare, and higher education clients. The group offers clients a diverse menu of real estate outsourcing services, including facilities/property management, project management and facility planning, transaction services, strategic services, office services, portfolio administration, service management and development services.
Learn more at www.trammelcrow.com
Richard Byatt
