Mid-Sized Brokerage Firms Feel the Pressure of Globalization
July 10, 2012
By: Elaine Misonzhnik
Consolidation continues to be a major theme for commercial real estate brokerage firms this year, as corporate clients globalize and seek service providers that can help them with multiple needs in every corner of the globe.
... In going global, brokerage clients have developed a strong preference for using the same firm for all of their needs, both on a geographic and a service basis, spurring industry consolidation.
That’s meant that commercial real estate services providers have had to build up the scope of their operations. ...
... Growth, however, is not an easy feat in markets outside the U.S., where oftentimes there is a shortage of experienced commercial real estate professionals that can be hired locally. ...
Go big or go home
While boutique brokerage firms that focus on small local markets won’t have to compete with the big guys because of their local positioning, those in the middle seem to be facing two choices: find a specialized niche or merge with a bigger rival that offers multiple service lines and global capabilities.
Studley, a New York-based brokerage that completed $49.91 billion in investment sales and leasing transactions last year, would appear to be more of the former. Several years ago, Studley established an office in London and formed a partnership with the French brokerage AOS, but its main strength appears to be its focus on tenant representation. ...
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