NEWMARK & COMPANY REAL ESTATE, INC.

Whether you're talking cubicle cities or corner offices, Newmark & Company Real Estate (dba Newmark Grubb Knight Frank) makes its mark on commercial real estate. As one of the world's top commercial real estate advisory firms, it provides property brokerage, development, and management services to investors, corporations, and property owners. It boasts more than 320 offices globally on five continents. Newmark, which also offers asset management services, has a property management portfolio that extends across six continents. Newmark is owned by global brokerage BGC Partners.

Strategy

Together with its affiliates, New York-based Newmark serves clients on six continents.

Operations

Newmark manages a broad range of properties, including headquarters, facilities and office space, for a wide range of companies. It manages the day-to-day operations and maintenance for urban and suburban commercial properties of most types, including office, industrial, data centers, healthcare, retail, call centers, urban towers, suburban campuses, and landmark buildings.

Property management services include building operations and maintenance, leasing, vendor and contract negotiation, project oversight and value engineering, labor relations, property inspection/quality control, property accounting and financial reporting, cash flow analysis, financial modeling, lease administration, due diligence, and exit strategies.

Newmark's facilities management services also include facility audits and reviews, energy management services, janitorial services, mechanical services, bill payment, maintenance, project management, and moving management. In 2013 company managed 165.5 million square feet managed in the US.

Its affiliates include Cantor Fitzgerald, CCRE-Cantor Commercial Real Estate, and Cantor Gaming.

Sales and Marketing

Newmark counts several big names among its list of clients, including Deutsch, CBS Corporation, Cornell University, and AmTrust Realty Corporation.

Financial Performance

Working under Real Estate Services segment of BGC Partners, in 2013 Newmark posted revenues of $577.2 million,  primarily due to the stabilization of the Grubb & Ellis brokers (after its transition out of bankruptcy), a more favorable real estate environment, and recent acquisitions (Frederick Ross and Smith Mack).

Strategy

The company is growing its business by adding new brokers, making technological improvements, and cultivating the company's relationships with clients in the US and abroad. 

Advised by Newmark, in 2014 Starwood Hotels and Resorts Worldwide announced plans to expand its global headquarters at Harbor Point in Stamford, Connecticut, to 430,000 square feet and its workforce to 1,320, only two years after relocating to the area. Newmaket represented the global hotel operator in the new 20-year lease.

In 2014 Newmark completed the sale of 427 West Fifth Street in downtown Los Angeles to MacFarlane Partners for an undisclosed sum. The transaction is the first step in transforming the desirable vacant lot into a major residential development. San Francisco-based MacFarlane Partners plans to develop the site at the northeast corner of Fifth and Olive Streets into an approximately 600,000-square-foot mixed-use development consisting of over 600 residential units within two buildings-a midrise and a high-rise-with an additional 17,000 square feet of retail space on the ground level. The project, which will incorporate smart growth and new urbanism concepts, is fully entitled and was approved by the city this spring. Construction is expected to start in mid-2015.

Mergers and Acquisitions

In 2014 BGC Partners agreed to acquire Cornish & Carey Commercial, Inc., the leading full-service commercial real estate services company in the San Francisco Bay area and Silicon Valley. The company believes that this is a key strategic addition for Newmarket in the key Northern California market.

In 2012 BCG Partners acquired most of the assets of bankrupt Grubb & Ellis and combined it with Newmark to launch the Newmark Grubb Knight Frank platform. It also acquired commercial real estate developer Frederick Ross and (in early 2013) brokerage Smith Mack.

Company Background

In 2011 BGC Partners acquired the Newmark and subsequently integrated Grubb & Ellis with Newmark Knight Frank to form the resulting brand, Newmark Grubb Knight Frank. The full-service commercial real estate platform offers commercial real estate tenants, owners, investors and developers a wide range of services, including leasing and corporate advisory services, investment sales and financial services, consulting, project and development management, and property and facilities management.

Founded in 1929, Newmark joined with UK's  Knight Frank to create Newmark Knight Frank in 2006.

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NEWMARK & COMPANY REAL ESTATE, INC.


125 Park Ave
New York, NY 10017-5529
Phone: 1 (212) 372-2000
Fax: 1 (212) 3722426
www.newmarkkf.com

STATS


  • Employer Type: Subsidiary
  • Managing Principal, San Francisco: Michael Brown
  • Ceo: Barry Gosin
  • Executive Managing Director, Dallas: Rebecca Griffin

Major Office Locations

  • New York, NY

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