Murdoch unveils new partnership offering to the real estate sector

A new offering by Murdoch Security Group provides a unique solution for New York City property managers who face challenges in making sure in-house security departments have the resources they need to track and respond to threats. Under this new partnership model, Murdoch is prepared to purchase multi-tenant guard departments from commercial real estate companies that can, in turn, realize significant cost savings and retain a vested interest in their security operations. In an increasingly complex business environment, tight margins and limited resources mean many companies are looking at their security departments for savings. However, cutting back on security can produce unwelcome consequences. Murdoch's latest ownership offering gives property managers a chance to get out of the security business and, with a stake in Murdoch's operations, diversify their investment portfolio. The company's innovative venture reflects a unique business approach, in which acquisitions and partnerships are built exclusively around a network of owner-operators. Using core assets of locally run offices led by experienced security professionals, the Murdoch Security Group provides flexible, value-added services. By engaging in a joint venture, companies continue to control how their security services are managed and monitored without the hassles of managing a protection unit. The Advantages of Outsourced Security The acquisition and management of in-house security departments by private companies is not a new concept. In 1998, General Motors awarded Pinkerton a $1.1 billion eight-year contract to provide security, investigations, personnel protection, and emergency management services to the automaker and to auto-parts company Delphi Automotive Systems. A year later, GM expanded the contract to include services to the company's operations in Canada and Mexico. The cost benefits of outsourced security are not limited to large corporations, such as GM. Smaller companies can realize significant savings as well, either through contracted security or by establishing joint ventures with other companies. For example, if a multi-property management company's guard department has several offices and supervisors on site at each location, a joint venture eliminates redundancies by combining resources to save money for both partners. Security in the Real Estate Sector According to the most recent figures from the New York State Department of Labor, the real estate sector is the most significant employer of security officers. Last year, an estimated 75,000 guards worked in New York City, and almost 10,000 were employed directly by real estate companies. Private security firms, many of which contract employees to provide protection for commercial and public buildings, employ more than half of all guards. With hourly wages ranging from $15 to $30, the price of proprietary security in the real estate sector totals more than $5 million a year in worker pay, alone. When outsourcing protection services, companies realize economies of scale through reduced manpower costs, increased efficiencies and improved productivity. However, often the most compelling reason companies decide to get out of the security business is related to the risks and liabilities associated with employee actions, or inactions. Some companies hesitate to outsource their security department because they want to maintain close control over staff, as well as retain employee loyalty. However, by partnering with Murdoch, businesses can continue to hold influence over their security operations. Murdoch takes great pride in the training, support and caliber of its security officers. These men and women represent the best of the best by being approachable, visible and customer oriented, while keeping a keen focus on deterring criminal activity and safety. William Vassell is chairman and CEO of Murdoch Security Group, New York, N.Y.