As previously reported on i-FM (see news 2nd May), CB Richard Ellis, Jones Lang LaSalle and Trammell Crow have formed a commercial real estate e-business alliance. The venture has now selected www.SiteStuff.com as its primary web-based procurement solution.

Through SiteStuff, the alliance partners will purchase property management maintenance, repair and operations products and services for the benefit of clients in the US. The procurement potential represents approximately $15 bn over a three year period. The partnership includes a combined $30 bn investment by the alliance companies as part of a preferred stock financing for SiteStuff. The companies say that through this partnership, they achieve the first of several core web-based strategies they aim to accomplish, setting the industry standard for enhanced real estate service delivery.

SiteStuff is designed to help owners and managers of commercial and multi-family properties streamline their operations through the online procurement of goods and services.

The three companies say they expect to finalise their collective investment and officially commence their partnership with SiteStuff by the end of this month. Their initial use of the SiteStuff platform will begin in the autumn. The companies estimate that the majority of their automated online procurement on behalf of their property management portfolios will take effect by the middle of next year.

"By converting the manual procurement process employed by each alliance partner to the web-based system developed by SiteStuff, we expect to see significant reductions in our operating costs. These savings will benefit our clients and significantly improve operating efficiency for each alliance company," said Ray Wirta, CEO of CB Richard Ellis (which operates as CB Hillier Parker in the UK)

Anna Lagerkvist