The (Public) Real Estate World... Google's announcement last week of its planned stock offering reminded me of CB Richard Ellis' previously announced registration with the SEC to sell $150 million of stock. (The Market Is Rising for Real Estate Services. How About Shares?, New York Times, Mar 17, 2004)

So I'm wondering. Which is the better deal? With all the hype surrounding Google, will its stock be wildly overpriced? Could CBRE's stock actually outperform Google's over the next five years? The two companies' business models remind me that Men Are from Mars, Women Are from Venus.

"One Google employee described the company's engineering-driven culture as 'high school in reverse -- the nerds are in control.'" (Wall Street Journal, Apr 30, 2004) Hmm. Doesn't sound like a real estate brokerage company.

And I'll bet that CBRE doesn't offer "on-site massage therapists, free health-conscious meals and games of roller hockey in the parking lot." (New York Times, Apr 30, 2004) Nor would I guess that Ray Wirta, CEO of CB Richard Ellis, drives a Prius, Toyota's hybrid gas-and-electric car, as Google's founders do.

CBRE, which originally went public in 1996 and then private in 2001, will rejoin two other publicly-traded large diversified service providers, Jones Lang LaSalle (NYSE: JLL) and Trammell Crow (NYSE: TCC). Jones Lang LaSalle and Trammell Crow are both up more than 50% over the last year. But both are trading lower than five years ago, just as the broader market is lower.

According to the New York Times, "Officers of Trammell Crow and Jones Lang LaSalle cite, beyond more ready access to capital, many advantages for a real estate company to go public, including the opportunity to issue stock options to help retain valued employees." What do you think?

Spread the Word... Many thanks to Integrated Business Systems - IBS for sponsoring this week's Dispatch. IBS provides in-house computer management systems focused on three key areas -- property management, network services and general accounting. If you would like to tell Dispatch readers about your services, send e-mail or call 415-485-6700.

--Peter Pike