News
BofA JOB LOSSES = OFFICE CUTS
September 14, 2011
| The impact that Bank of America's plan to eliminate 30,000 jobs will have on CRE will depend on how the Charlotte-based bank makes the cuts, Colliers International EVP Daniel Rudd tells us. | |
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| They have announced about a 10% reduction in overall workforce. If that is spread evenly across the country, you will likely see a small impact to the local office market. If they cut whole business units, or make reductions based on geography; that could be more harmful to the local office market, Daniel tells us. | |
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| BofA leases around 1M SF of office space in DFW (including a big chunk in the Bank of America Plaza) even with downsizing here some over the last several years. A lot of the BofA's local infrastructure was partially due to the old Dallas-based First Republic Bank Corp (acquired by NCNB in 1988). ?I think what we are seeing is the hangover from the Merrill Lynch acquisition and the TARP program and the fact that the bad assets were never flushed off the bank?s balance sheet but just papered over, waiting for bad investments to turn the corner; which they haven?t,? Daniel says. We haven't seen the end of this: "We'll see similar problems with other financial institutions dealing with the same issues.? |
