Baylor Health Care System grew quickly through acquisitions of community hospitals and physician practices. It had worked with CBRE on many important assignments, including the delivery of a major heart hospital, where CBRE produced dramatic savings against the initial budget. Over time, Baylor recognized the need to centralize and standardize operations across its entire real estate portfolio and implement a wide range of best-in-class, integrated solutions to achieve its business objectives. It needed real estate talent to help guide its growth.
Solution & Outcome
Baylor outsourced its entire real estate portfolio of approximately 9.8 million square feet to CBRE. The company centralized operations to achieve the highest quality, efficiency and regulatory compliance. Today, CBRE manages 253 assets, ranging from hospitals to office buildings to warehouse space, and $456 million of annual operating and capital spending. CBRE’s services include facility management and engineering; leasing and property management of medical office buildings; transaction management; campus real estate planning; portfolio lease administration; project management and development; and strategic planning.
Since 2001, CBRE and Baylor have completed 12 ground-up development projects, including hospitals and medical office buildings, achieving aggregate savings of $58 million against construction budgets, and reducing operating expenses by over $36 million. CBRE also secured strategic properties for future system growth, while developing numerous quality-driven standard practices. Baylor’s engineers and facilities staff have become part of CBRE, where they enjoy enhanced opportunities for professional training and education as part of a global real estate services firm.