GlobeSt.com QUICK SURVEY: Networks May Be a Passing Fancy

NEW YORK CITY-Major news from major players in the past few months indicates that broker alliances are all the rage these days, overshadowing the once-popular acquisition trend of a few years ago. Names such as Cushman & Wakefield, Insignia/ESG and Grubb & Ellis have all jumped aboard the alliance bandwagon, but a slim majority of respondents to GlobeSt.com’s latest Quick Survey believe that the bandwagon will break down after a quick spin around the block.

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.

“Giving away control, no matter how carefully you believe you can monitor it, is foolish and dangerous,” stated one respondent who commented on the issue.

“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.