The Postal Service needs to end its relationship with a major commercial real estate broker, a federal watchdog said this week.
USPS’s inspector general said the agency’s set-up with CBRE, in which the real estate broker sometimes represents both sides of a lease or sale, sparks “conflicts of interest.”
Both the Postal Service and CBRE have defended their current arrangement. But the inspector general said it’s concerned that “CBRE may not negotiate property sales and lease transactions in the Postal Service’s best interest.”
Before the Postal Service and CBRE teamed up, the inspector general said, potential landlords used to negotiate directly with the agency.
But now, the watchdog says it has heard complaints from building owners about CBRE demanding commission payments. In all, CBRE collected roughly $20.6 million in commissions on roughly 3,400 leases.
On top of that, the inspector general said that it believes the Postal Service – which lost some $5 billion in the most recent fiscal year – could be overpaying by about $9.5 million a year on rent due to leases negotiated by CBRE. Those overpayments, the inspector general said, went toward commissions for CBRE.
For those reasons and more, the inspector general said the Postal Service should get rid of CBRE and allow other companies to bid to be the agency’s broker.The article does state the case for a possible 'conflict of interest' at the USPS, but is looking for cronyism and corruption a conspiracy theory? Should the reader have been informed that CBRE is connected to Democrat Senator Dianne Feinstein's husband Richard C. Blum. Consider the following :
'The US Postal Service intends to sell 56 buildings, so it can lease space more expensively. The real estate company that has been charged to handle the sale should pocket approximately $1 billion in commissions. The company designated to handle the transactions is none other than that of the California senator’s husband, Richard Blum. '
'In March 2011, Blum’s company, CBRE, was selected as the sole real estate agent on sales expected to reach $19 billion. It went unnoticed by most voters that Blum is a member of CBRE’s board and served as chairman from 2001 to 2014. Already questions about appraisals and transaction prices, and whether or not the post office has received fair value for its properties or if CBRE select clients have received special deals on preferred properties.
The media ignored this not uncommon feat of federal spousal support after Feinstein’s office stated the senator had nothing to do with the USPS decisions to award the brokerage of the sales to CBRE 'Not only was Donald Blum chairman of the board at CBRE, he is still listed as a director.
Another 'conflict of interest' is when the liberal media reports on anything connected to the Democrats. This isn't the first or last time the media will cover for the Democrat party, but Senator Dianne Feinstein seems to get very special treatment, even for a Democrat. My previous blogs followed the money trail that started at death and destruction and lead right to the Senator and her husband's door.