TPG-backed DTZ’s agreed $2bn (£1.3bn) acquisition of Cushman & Wakefield looks set to finally break CBRE’s and JLL’s duopoly on the global agency market and could create a new top agent in London.
EG’s analysis of both firms’ respective office networks highlights the synergies which underpin the deal, illustrating the extent of C&W’s dominance in the Americas and DTZ’s supremacy in the increasingly important Chinese market.
In revenue terms, the businesses brought in a combined $5.5bn in 2014, compared with $5.4bn for JLL and $1.7bn for Colliers International, but still a long way short of the $9bn brought in by CBRE.
However, while in global terms the two firms’ strengths are complementary, the UK has considerable overlap, creating both a significant opportunity for management and a major challenge.
If it keeps fallout to a minimum, the combined company could race to the top of EG’s Top Agents rankings in two of the UK’s seven biggest markets, most notably in London, based on 2014 data for leasing disposals. With DTZ already the top agent by disposals in two further markets, the combined firm would be a top-three agent in each of the top seven markets bar Birmingham.
But with strong teams on both sides in several key markets, competitors are already looking to see who can be lured away with the promise of bigger roles and remuneration.
