Brookfield Asset Management, one of the world's largest owners of commercial real estate, has fired brokerage Cushman & Wakefield from some U.S. leasing assignments, according to a person familiar with the situation.
The termination came after a dispute arising from a failed office deal in New York, the person said. Cushman & Wakefield, based in Chicago, wanted to move some of its New York offices into a Brookfield skyscraper at 660 Fifth Ave. but later pulled out of the deal, according to Bloomberg, which reported the news earlier.
In an internal employee memo viewed by CoStar News, Andrew McDonald, Cushman's global president and chief operating officer, said, "at this moment, in this environment, the prudent decision is to remain in our existing space."
"Occasionally when you think long-term and make hard decisions that can run contrary to a client relationship, it can feel like you're taking a step back," McDonald said in the memo. "But, our job is to professionally steward this company for our people and our shareholders, to serve our clients today, and build a future for the next generation."
The firing affects Cushman's listings at Brookfield-owned properties across the United States. Toronto-based Brookfield has about $800 billion in total assets under management globally, including roughly $479 billion in North America, according to the company's website. Brookfield declined to comment to CoStar News.
“We’re proud of the work and long-standing value our brokerage advisory professionals helped to build into Brookfield’s portfolio," Mike Boonshoft, head of Cushman & Wakefield public relations in the Americas, said in an emailed statement. "While completely surprised by this reaction, we consider disciplined management in the best interest of our firm, employees and shareholders.”
Boonshoft didn't respond to a request to comment about how many listings were affected and what the financial effect could be.
The termination comes after Cushman, the world's third-largest commercial real estate brokerage, reported a $33.9 million loss for the third quarter due in part to a decline in leasing and sales activity in response to economic uncertainty and higher interest rates. The company has laid off hundreds of employees and cut spending on travel and other expenses in recent months.
CoStar News reporter Ryan Ori contributed.