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Chris Wilson, president of retail brokerage firm Wilson Commercial Real Estate, tells GlobeSt.com the Grubb & Ellis news is the “continuation of some significant changes in the commercial real estate brokerage industry.” He expects a creation of more boutique brokerage firms and further mergers and acquisitions over the next four or five years as the commercial real estate service industry and its salespeople adjust to the new economy.

While Wilson and Sperry’s Maggiacomo agree on further consolidation, Maggiacomo says that in terms of “more boutique brokerage firms,” succeeding with that is a tough proposition. “It is extraordinarily difficult to create brand and enterprise value for a boutique brokerage,” he says. “For most, brokerage is a means to some other, more profitable end, like property ownership.”

Maggiacomo continues that “Investing in a start-up, boutique brokerage, going through the slog of creating a brand which ultimately will hold little value, while finding it more difficult to win assignments over more recognized brands, doesn't sound like the ideal path to that goal.”

The bottom line, according to Edward Indvik, CEO of brokerage firm Lee & Associates, is that the real estate brokerage business is a resource, employee-intense business that requires tremendous financial and operational expertise. “The larger companies, especially the publicly-traded firms, will continue to struggle with every low margins or loss and with a Wall Street that will not reward firms that have cyclical revenue and low and cyclical profit streams,” he says.

Indvik explains that for the large firms, one solution is to get control over their number one expense: their agents. “I expect those firms will continue to work on tilting the revenue participation to the organization and away from their sales staff.”

As for how boutique firms will fare, Indvik says that “boutique firms will have an increasingly difficult time providing the needed tools and resources that an ever-growing sophisticated client and marketplace will demand.”

Either way, all sources agree that the future of national firm Grubb & Ellis is anything but certain. Edward Indvik, CEO of brokerage firm Lee & Associates, tells GlobeSt.com that as the firm must gain bankruptcy court approval, “it may take many months if not years” for this move to happen “because of the time necessary to have a plan considered and approved by all parties.”

Indvik also specifically addresses G&E president and CEO, Tom D’Arcy’s point that “it will be a seamless transition for our clients.” He wonders: “How long will Newmark be willing to supply ongoing financing if the ultimate outcome is unusually delayed or uncertain? Can the brokers continue to provide services?” As a broker or client, Indvik says he “would be nervous that yet another unpleasant surprise can happen at any time, and says it does not make for a stable platform or environment for anyone involved.”

Maggiacomo points out that “it will be interesting to see what happens to a brand which, not long ago, had achieved global supremacy in commercial real estate advisory. Hit hard by the one-two punch of a large debt load and a recession, this maneuver was the best of limited options for Grubb, and in my opinion, makes sense for all stakeholders—especially BGC.”

Maggiacomo continues that “If BGC can articulate a compelling story to the remaining Grubb brokers, and stem the tide of lost advisors, then perhaps the iconic brand will survive. If not, then we will see the Grubb & Ellis brand disappear and the remaining team members be consolidated to create a larger Knight Frank.”

Wilson tells GlobeSt.com that there is some sadness on his part in Grubb & Ellis evaporating from the landscape—it’s where he got his start in 1985. But he is quite confident that the firm’s top G&E brokers won’t run into too much trouble. “They will stay or migrate to other firms, and their clients will follow,” he says.

(Grubb & Ellis and BGC did not have a comment on the subject for this article.)