One of Dallas’ top real estate development firms is parting ways with its CEO next month amid economic worries and a slowdown in business.
Trammell Crow Company’s (TCC) Chief Executive Officer, Mike Lafitte, will depart the company on “mutually agreed” terms on February 17, 2023, according to an SEC filing from the company.
Founded in 1948, TCC is a real estate development and property management firm based in Dallas, as well as a wholly-owned subsidiary of CBRE Group, which acquired TCC in 2006.
Despite having to leave the company next month, Lafitte is proud of his time with TCC, having worked for the firm from 1997 to 2023.
“Serving as CEO of Trammell Crow Company for the past few years has been the honor of my life in business,” Lafitte said.
Lafitte’s scheduled departure comes as the company is seeking to make $400 million in cost reductions, “with the vast majority coming from headcount reductions,” according to the company.
Prior to being named CEO of TCC in 2020, Lafitte had served in multiple high-level roles, such as CBRE’s global CEO of real estate investments and Global Group President of Client Care for CBRE.
During his tenure at CBRE, Lafitte pushed for greater capital investments and sought to explore new real estate-related opportunities.
Lafitte made major contributions to the company’s growth during his 25-plus-year tenure, according to Bob Sulentic, CEO of CBRE Group.
“Mike has been an exceptional ambassador for CBRE and TCC, and we wish him great success in his personal and professional endeavors,” Sulentic said.
After next month, Lafitte says he plans to pursue business and investment opportunities and personal interests.
“I am looking forward to serving on various boards, investing in real estate along with other business opportunities, staying active in the community, and spending more quality time with family and friends,” Lafitte said.
Danny Queenan — CEO of CBRE’s real estate investments division — will take over TCC’s CEO responsibilities following Lafitte’s February 17 exit.
As of September 30, 2022, TCC had $19.5 billion of projects in the works and $13.5 billion in the development pipeline, according to the company’s third-quarter financial results shared on its website.
Cost reduction efforts should always begin at the top, in both headcount and compensation. This is notable but rare.