DALLAS and IRVING, TEXAS -- Consolidating its position with the two players who made up the pre-merger petroleum heavyweight, Trammell Crow Co. (TCC at
www.trammellcrow.com) has inked two three-year agreements to provide real estate services for Irving-based ExxonMobil Corp. (
www.exxon.mobil.com).
Both pacts are scheduled to run for three years. Under the terms of the two agreements, TCC will:
- Provide development and project management services for all of ExxonMobil's U.S. retail store chain, and
- Serve as ExxonMobil's representative for brokerage services in the Caribbean Basin, Central America and Chile.
TCC Exec: 'Long History Key Element in Decision'
The two new contracts mark a continuation of TCC's relationships with both Exxon and Mobil. The two companies formally merged on Nov. 30, 1999, to create the world's largest integrated oil company.
Prior to securing the two new pacts, Dallas-based TCC had had an ongoing eight-year relationship with the former Exxon Corp., as well as a nine-year ongoing relationship with the former Mobil Oil Corp.
"Our long history with both Exxon and Mobil was a key element in ExxonMobil Corp.'s decision process," TCC Managing Director Jim Wilson said in announcing the new agreements.
Added Ken Loeber, TCC's director of development for the ExxonMobil account, "TCC demonstrated a unique combination of client-tailored solutions from our Outsourcing Services [Division] relationships, coupled with best-in-class local development and entitlement expertise."
Merged ExxonMobil Shedding Workers
The TCC agreements come as the post-merger ExxonMobil is shedding workers.
CEO and Chairman Lee Raymond, speaking at ExxonMobil's Aug. 1 investors' meeting last year, projected that the merged company's combined headcount would decline by 19,000 between 1998 and year-end 2002. As of year-end 1999, the merged organization had a total of 123,000 employees.
Divestment of European and U.S. assets would reduce ExxonMobil's headcount by 2,500 employees, Raymond said. Another 10,000 staff reductions would be accomplished through separations, while the remaining 6,500 were expected to come from "normal attrition," he added.
New Deal Follows AMEX Pact
The ExxonMobil agreements maintain TCC's rank as the service provider with the largest outsourcing real estate portfolio, totaling more than 180 million sq. ft. (16.2 million sq. m.).
The ExxonMobil deals come less than six months after TCC landed another major outsourcing agreement with American Express (
www.americanexpress.com). That pact stipulated that TCC would provide a broad range of real estate services for American Express operations in Canada, Latin America and the United States. Under the terms of the agreement, TCC's services to AMEX included facilities management, project management and transaction management.
The AMEX-TCC agreement, which consolidated multiple prior service agreements between the two parties, provided for the move of some 500 employees to Trammell Crow in the pact's first year. Most of the affected workers would be former American Express employees, Trammell Crow executives explained. But they added that some of the affected employees would come from other service companies affiliated with AMEX.