The AIM-listed property services company, run by David Izett, is negotiating to buy Jansons & Partners, which focuses on the west London shed market.
Neither party would confirm the deal today but Property Week understands that a deal is expected to be struck within three weeks.
The takeover will be the second of a south east industrial agency specialist in six months - in June CB Richard Ellis acquired Holley Blake.
Based in Uxbridge, Jansons & Partners was set up in 1990 by Andy Jansons and Len Rosso, although Jansons has since moved on to form his own development company. In 2004 the firm took the property world by surprise when it beat national rivals to the Best Industrial Agency Team of the Year in our Property Awards. In the year to April 2006 the firm generated turnover of £2.6m.
The impending deal is the first to merge since Colliers CRE raised £15m from its shareholders in October to finance corporate acquisitions in the UK and continental Europe and to enable it to co-invest in funds.