The merger, which brings together two Davids among the Goliaths of the West Coast commercial real estate industry, is expected to result in a winning combination for both firms. For A.W. Arendsee, the merger means the ability to expand outside the Downtown area and the opportunity to access a wider spectrum of resources, including technical and professional training, market research studies, detail lease and sails comps and financial analysis services. "It provides us with the economies of scale that we didn't have as a boutique firm," Allan Arendsee, the president and founder of A.W. Arendsee, tells GlobeSt.com, adding that the merger has helped his six-person company "add arrows to its quiver."

For BRE Commercial/NAI, the merger means a dramatic shift in its Downtown San Diego presence, as A.W. Arendsee has a very strong foothold in this market. The joining of the two companies will give BRE Commercial the listings to 1.6 million sf of office tower inventory, which Arendsee says represents approximately 20% of the entire Downtown office market. "We had not been strong in the Downtown market, but now we're the number one firm," John Frager, BRE Commercial's president and CEO, tells GlobeSt.com.

The addition of Arendsee and his five-person team to BRE Commercial is one of the latest signs of the brokerage house's rapid growth and increasing strength. In 2002, the company hired several top-performing brokers, including Frager, away from national firms like CB Richard Ellis and Grubb & Ellis. With more than 80 brokers on staff, the privately held firm now represents approximately 29.5 million sf of industrial, office and retail properties throughout the San Diego region.