Colliers, in a move designed to boost its operation in a large market, bought its affiliate in Philadelphia and appointed the operation's leader, Doug Sayer, as a vice chairman.
Sayer said the Colliers Philadelphia affiliate played a part in Colliers' growth and development in the United States and globally over many years.
“Integrating with Colliers was a natural next step that will allow us to leverage Colliers’ industry leadership, established global platform, and proven track record of performance,” Sayer said in a statement.
Colliers Philadelphia has five offices and 130 professionals who work in landlord agency services, tenant representation, investment sales and property management. Gil Borok, president and CEO of Colliers U.S. and Latin America, said Philadelphia is a significant market for the firm and that buying its operation there for an undisclosed amount will enable it to better serve its clients.
Over the past five years, several global brokerage firms have acquired affiliates and alliance members because doing so often strengthens their position in primary markets such as Philadelphia and gives them a more recognized presence in secondary and tertiary markets.
In 2022, Cushman & Wakefield acquired Grant Street Advisors, a Pittsburgh-based boutique commercial real estate services firm that had served as Cushman's longtime alliance member in the market. Around the same time that year, Colliers bought the Colliers Greater Cincinnati-Dayton and Colliers Cleveland-Akron affiliate operations and incorporated them into the company.
“Our acquisition of Colliers Philadelphia is consistent with our strategy of acquiring and growing significant affiliate operations that have become top players in their respective markets,” Borok said in a statement. “Philadelphia is the eighth largest metropolitan area in the U.S. and home to many Fortune 1000 companies. As a vibrant and influential market, our ownership will allow us to better service the requirements of our clients locally, nationally, and internationally.”
Challenging Office Market
Colliers' purchase of its Philadelphia affiliate comes as the city's office market combats a vacancy level of 15.2%, with nearly 51 million square feet of available space, according to CoStar data. The market, however, has been somewhat protected against office-job losses impacting other cities, according to CoStar research.
"As the ninth-largest office market in the United States, Philadelphia has weathered the office storm better than most major metros, largely because of its low reliance on the information and technology industries," CoStar said in a recent report. "Instead, Philadelphia's employment base is significantly driven by the healthcare, life science, and education industries, which usually require in-person working environments."
Sayer began his commercial real estate brokerage career at Lanard & Axilbund and became its president and CEO in 1991. He "was the driving force in the firm’s affiliation with Colliers International in 1994," Colliers said on Sayer's bio page.
With Sayer at the helm, Colliers opened offices in Allentown, Conshohocken and Harrisburg in Pennsylvania and in Mount Laurel, New Jersey, and Wilmington, Delaware.
Colliers said it credits Sayer with expanding to offer services in office, industrial, retail and investment brokerage, property management, nonprofit group and seniors housing and valuation.
“The acquisition of Colliers | Philadelphia creates a strong, contiguous company-owned operation across all major markets in the fast-growing U.S. Northeast and Mid-Atlantic regions,” Gregg Shutan, president of Colliers' East region brokerage, said in a statement.