In sync with its efforts to strengthen its retail services offerings, CBRE Group Inc. (CBG) acquired a Dallas, TX-based commercial real estate firm – United Commercial Realty (UCR). This is the second regional retail real estate firm that CBRE has purchased in the past 16 months, following the Fameco acquisition in Sep 2013.

Founded in 1988, UCR manages around 8 million square feet of retail properties across the U.S. for institutional investors like Prudential Real Estate Investors, Deutsche Asset and Wealth Management and Invesco. The company, along with its urban leasing division, acts as leasing agent for 20 million square feet of shopping centers nationally.

Furthermore, UCR represents more than 200 retailers and restaurants as part of its tenant representative service. The list includes top notch companies like Target Corp. (TGT), The Gap, Inc. (GPS) and Starbucks Corporation (SBUX). CBRE is also purchasing UCR’s affiliate office in Austin as part of this deal.

The deal brings on board more than 100 professionals of UCR. Specifically, Mickey Ashmore, the primary owner of UCR, would assume the role of Vice Chairman, Retail Services for CBRE; while Asset Services’ (property management) leader Scott Weaver will become a Senior Managing Director in CBRE’s Asset Services team.

Strategic buyouts have played a vital role in enhancing CBRE Group’s geographic coverage as well as broadening its service offerings. In recent times, the company announced the acquisition of an Oklahoma-based commercial real estate services firm – CBRE | Oklahoma – which has served as its affiliate since 1999, managing over 18 million square feet in the region. The company also acquired IVI International, Inc. and its related firms, which is expected to strengthen its existing Valuation and Advisory Services business, going forward.

With market conditions continuing to improve, we believe that opportunistic acquisitions would serve as growth drivers, supplementing the company’s organic growth and aiding in market share gain.

CBRE currently has a Zacks Rank #2 (Buy).

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