For those working in the commercial real estate brokerage industry, the past decade certainly hasn’t been dull. A major recession and aggressive M&A activity, along with a wave of other innovations related to technology, data and processes, are some of the factors driving a sea change for brokerage firms. An exclusive NREI brokerage survey captures a snapshot of industry views on the pros and cons of those key trends, as well as provides further insight into the changes—and challenges—still to come.
One of the key focal points for the industry in recent years has been consolidation as the top firms continue to grow ever bigger, expanding their service platforms, talent pools and global presence. Yet respondents were evenly split on their views on whether the net consolidation that has occurred among commercial real estate firms is a positive or a negative for the industry. An equal percentage of 28 percent said they believe the consolidation is either positive, negative or neither, while 16 percent was unsure of the impact on the commercial real estate services industry...
“It is positive for the client because they get a much broader range of services, a deeper resource talent pool and the comfort of knowing that they are working with strong, global powerhouse entities,” says Mitchell Steir, chairman and CEO of Savills Studley. A year ago, London-based Savills acquired Studley for $260 million. Savills Studley currently has 27 offices in the U.S., and as part of the Savills network, also has access to resources at over 600 offices around the world...Part 1: M&A Activity is Transforming the CRE Brokerage Industry
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