Grubb & Ellis Co., one of the nation’s leading real estate service and investment firms, has confirmed plans to open one of its Landauer Appraisal and Valuation brand offices in Baton Rouge. That move has triggered controversy in local appraisal and commercial real estate circles and led to tensions with the Baton Rouge Area Chamber. “We are planning on opening an office, although we haven’t hired anybody at this point,” says Janice McDill, a spokeswoman for Grubb & Ellis. “We’re very interested in the Baton Rouge market.”
Grubb & Ellis has opened 24 Landauer offices throughout the country since the brand was launched last summer. The Baton Rouge office will not include any of Grubb & Ellis’ real estate services, says McDill, and will focus solely on appraisals. An office location has not yet been secured, but interviewing for an unspecified number of appraisers is under way.
Rumor of the office opening touched off a firestorm late last week among some commercial Realtors and appraisers, who speculated via e-mails obtained by Business Report that BRAC had recruited and given incentives to a competing business. Adam Knapp, BRAC president and CEO, says Grubb & Ellis was not recruited, nor was it provided any incentives. Instead, he says, Grubb & Ellis representatives became interested in the area after visiting Baton Rouge last fall as part of a site selection familiarization tour that included “eight to 10” other companies.
“We brought them in because they are very well connected to industrial partners who make major site selection decisions,” Knapp says. “What we aim to do on those tours is build relationships with top site selection firms that have clients who are looking to make business investments—not recruit the firms themselves.”
But commercial Realtors say they plan to meet with Knapp and BRAC to determine if any recruitment happened. They also want to look into rumors that builder Dwayne Honore gave Grubb & Ellis a break on rent for an office building he owns on Highlandia Drive. Honore says he met with Grubb & Ellis officials for “five minutes” and no rental terms were discussed. “I don’t know how serious they are or what their intent is,” he says.
