Some 51.9% of our survey participants believe that the alliance trend is a cost-saving measure that will give way again to acquisitions once the economy recovers. Approximately 48.1% indicated that the trend is here to stay.
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"I believe it is mainly a cost-savings approach to maintaining market coverage," agreed another. "Brokerage, like most other industries, is cutting fat, unproductive professionals and service lines. Lean and mean seems to be the focus right now."
"National firms are establishing themselves with partners in smaller markets so they are in a position to purchase these firms when cash flows bounce back," commented a third.
Of course, there were a sizable number of opposite reactions. "We are part of a global network," said one writer. "Alliances and globalization are the way business is done nowadays." "I think the major reason behind this approach is for instant market share," said another respondent. "With competent and respected brokers already in the market, the national firm can take over a local firm that already has established itself within the target market and thus not risk coming into a market blind or behind the curve. Of course all of this assumes they pick a local firm that is all of these things already."
It should be noted here that precisely half of our participants characterize themselves as independent from both networks and nationals, while 32.6% belong to a network. Only 17.4% are owned directly by national real estate firms.
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