Real estate firm earns more than $3 million from Tennessee outsourcing contract

NASHVILLE — Real estate management giant Jones Lang LaSalle has so far made $3.35 million in commissions from striking private office leases on behalf of Tennessee government agencies since its state outsourcing contract began in May 2013, figures show.

Thirty months into the contract, the company has already made more money than it will on its separate 60-month contract to provide facilities and energy management for nearly three dozen state-owned office buildings.

The facilities management contract calls for the publicly traded firm to be paid $600,000 a year or $3 million over the course of the five-year agreement. Haslam administration officials say that’s already saved taxpayers $12.9 million over two years.

Figures on JLL’s leasing commissions were provided Tuesday by Department of General Services’ officials following a Times Free Press request last week. So far, JLL has received $3,355,109.33 in commissions on 19 office leases the company negotiated for the state. The company receives 4 percent of the value of each lease, which state officials say is the industry standard.