GlobeSt.com: How will the new relationship work in practice?
O'Keefe: More than anything we're looking to learn from each other. We'll be sharing staff between the offices and many divisional heads will be spending time in their counterparts' offices. We've set up a regular schedule of meetings to review progress, and we'll be putting together a specific plan so that we can address our client business seamlessly. Say a Pittsburgh-based client needs space in Frankfurt. We need to have the systems in place to make sure it happens smoothly. We also need to target our marketing toward new as well as existing clients.
GlobeSt.com: What trends are driving the approach?
O'Keefe: Business is going multi-national. Borders are breaking down and events like the introduction of the euro and the spread of the Internet mean that real estate is becoming part of a world market. As that happens, companies have to address real estate issues globally. People need independent real estate advice in their own markets, and that applies even more when they go into a new geographic area.
GlobeSt.com: What makes Knight Frank stand out as a business partner?
O'Keefe: They have a similar approach to client service, and they are strong in markets that we have not penetrated like Europe, the Middle East and Africa. They are also exceptionally strong on the research side. Grubb & Ellis will be sharing market intelligence with them, and we've already agreed to conduct some worldwide research projects.
GlobeSt.com: Is this part of a move away from a transaction-based service?
O'Keefe: We are trying to get beyond the mere servicing of deals. For instance, we will be offering a strategic-planning service for businesses looking to move into new territories. We have to help clients understand the local real estate issues, taxation and legislation.
GlobeSt.com: What about the investment side of the business?
O'Keefe: The first person Grubb & Ellis shared with Knight Frank was an investment specialist. He'll be looking to identify overseas opportunities for US investors--like pension funds, opportunity funds and developers. We have the resources to advise them on which markets they should be looking at. One of the biggest results of 9/11 is that people want to be more diversified in terms of both occupancy and investment. A lot of US players have already come to Europe, and at first they tended to use US suppliers, but now that's widening. I think more US institutions will now look at Europe. There are always pioneers--like Teachers--but others will follow.
GlobeSt.com: Is there a flow the other way as well?
O'Keefe: We do see business flowing to America across the Atlantic, but it tends to be more on the occupational side than investment. We have already acted for Knight Frank clients Silentnight beds, and for Stelios Haji-Ioannou's EasyEverything Internet cafes. We took a site on Times Square for their first New York cybercafe, which has become part of the regeneration of Times Square. On the investment side there's been a long history of British and Dutch investment in the US, but recently the German funds have been very heavy investors in the US. In New York they're even building residential now. I'm sure we'll continue to see international investment at all levels.
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