New York-based Studley Inc. would lose its exclusive status as one of the nation's largest tenant representative real estate brokerages as part of its planned sale to London-based Savills PLC for $260 million, but that's not the reason why competitors like CBRE Group Inc. and JLL should take notice.
The proposed deal, announced by both firms this morning but rumored in the industry for months, would give Studley the international reach it has lacked going up against its larger competitors and access to foreign markets in Europe and Asia where Savills is a dominant player. More details of the deal, including the prospect that Studley staff will be eligible for performance-related payments of up to $25 million in March 2018, can be found on Savills' website.
Here in the D.C. area, that could be a game-changer and potentially set the stage for Savills Studley, the entity that will emerge if the deal closes as scheduled later this month, to wrest D.C.-based multinational firms from its larger competitors.
So why should its competitors take notice?
- The deal will give Studley brokers access to tenants that previously turned their back on the firm for lack of an international presence.
- The deal will position the new firm to compete on an international stage against companies such as CBRE and JLL.
- The deal will give Studley brokers access to foreign investors when its clients are seeking to sell property in the Washington region.
Tom Fulcher, executive vice present and co-regional manager for Studley in D.C., talked with me about the deal this morning and said many D.C.-based international companies have turned their back on Studley in the past because it did not have a global reach.
"It takes us to a different league in terms of size and possibility," Fulcher said. "There are clients that have said we would like to work with you, but you're not in as many places as we'd like you to be. I think we're going to be able to talk to those people with a lot more confidence than we were able to before."Three reasons why the Savills-Studley deal is a game-changer for D.C.'s real estate market
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