CBRE contract questioned by local broker

October 17, 2013

Mayor Ashton Hayward has announced that he wants to engage CB Richard Ellis (CBRE) to represent the city’s properties, including the Community Maritime Park, Port of Pensacola and Pensacola International Airport. He is using a state contract to avoid issuing a request for proposals on real estate services.

John Griffing, president/CEO of NAI Halford, has sent a letter to Pensacola City Council questioning the proposed contract.

His argument that the City not contract with CBRE has to do with three issues/questions:

1. If CBRE intends to use local brokers, what is the point of the City contracting with CBRE?

2. Why use an out of market broker, sending the revenue outside the City and region, when there are professional commercial real estate brokers in this market who have done and have proven that they can do a better job than a firm who does not have market knowledge and experience?

3. Why can’t the City send out an RFP for real estate services and let everyone compete?

Griffing ended his letter: “We ask that the City Council open the process and ask for a request of proposals (RFP) for the representation of the City of Pensacola properties.

Read Letter to the Council.

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