Wes Powell:No. It's a generalization and a self-serving statement. With a limited service to sell, single agents have to find ways to level the playing field. An unsophisticated tenant may not see it as a generalization though, especially if they are not aware of the facts and benefits of full service firms during the decision process. Virtually every landlord and most global companies—organizations with truly experienced real estate experts—use full service firms.

Conflicts can and do arise in any business model. I think any company that believes they are not susceptible to conflict is deluding itself and doing a disservice to its clients. Of course, conflicts—or the appearance of conflict—can arise in a dual agency environment. But there is a very high degree of transparency in today's commercial real estate transaction and companies that serve both owners and users can't afford to be less transparent than the rest of the market. In fact, you'll find that firms like ours bend over backwards to be even more transparent precisely because there are competitive models out there with entire marketing plans focused on painting firms like us as conflicted.

As a landlord broker, I find some of the best tenant rep work I've experienced is from full service brokers due to the strict fiduciary responsibility and breadth of knowledge they bring to a transaction. In the last real estate service provider quality benchmark, the Watkins Survey (2013), one of the things our firm was lauded for was its ability to understand and avoid conflicts of interest. We work very hard to make sure conflicts don't arise and, on the rare occasion even a perceived conflict exists, we move quickly and decisively to correct them.

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Globest.com: It's also been suggested that firms that exclusively represent tenants are the best equipped to service the real estate portfolios of companies today. How do you answer that?

Bart Lammersen: I don't think that is the case at all. Our tenant rep practice is one of the biggest and most respected in the region and country. Wes just mentioned the 2013 Watkins Survey. What he didn't mention was that since 2005, JLL has consistently been ranked the top corporate real estate services provider in that survey.

Let's just put that in perspective: the Watkins survey ranks 23 corporate real estate service firms, including full service firms like JLL as well as tenant-rep firms, based on 10 criteria. In 2013, JLL placed first or second in seven out of those 10 criteria and we ranked first overall. Since those surveys are based on responses from corporate real estate professionals representing about 200 different companies, I think that shows many corporations believe we are more than equipped to provide the level of service they desire and deserve, and that we deliver real value.

Globest.com: How about some examples of how you meet those expectations and the value you help deliver?

Lammersen: In 2013, our tenant rep teams completed a total of 7,835 lease transactions totaling 175 million square feet. Some of these transactions included representing the third largest craft brewery in the US in locating and negotiating a lease for a new 200,000-square-foot brewery and distribution facility that allowed the company to double capacity while reducing its carbon footprint. We advised a major bank in analyzing and optimizing its strategy for its 1,200-property portfolio and we are partnering with them to develop a system wide green sustainability program. We also saved a major law firm 25% in its overall real estate costs by helping them develop an overall real estate strategy and we helped a leading financial services firm manage its growth and acquire the land for and build a new LEED Gold headquarters in which it could consolidate several operations and improve employee collaboration.

Historically, companies have relied upon real estate service firms for primarily brokerage. Today, most corporations expect their real estate provider to do more than just lease them a building. Our clients have come to expect and demand more value from their service provider and that's why firms like ours are delivering greater value on both sides of the transaction.

Powell: That's right. You'll note that with all the assignments Bart just mentioned, we delivered something to the client that was much more than just a tenant rep advisory job culminating in a real estate transaction. The advantage we have is that all of our service—agency leasing, tenant rep, capital markets advisory, engineering, property management, project management, energy and sustainability services and a host of others—can leverage each and every part of the entire platform across a truly global footprint. So, for example, a corporate client in Europe, looking to expand in the US by building a LEED Gold campus in Silicon Valley, can access not just our corporate real estate solutions expertise in Europe, but through our International Desk in Palo Alto they can access resources that can advise them on where to build, how to build, how to manage costs, how to achieve energy efficiency and sustainability goals, as well as how to access capital, achieve tax incentives and a host of other factors.

Only a multi-disciplined and coordinated firm with access to all of this information can achieve this in a best of class manner. One thing is clear: real estate is, indeed, one of the largest cost factors for companies and the real estate environment that companies operate in today is much more complex than it was 20 years ago. Our tenant clients have told us that they want access to more services and advice, not less, so they can better plan their real estate strategies. Having all of these services under one roof benefits clients on both sides of a real estate transaction.

Globest.com: So, is there a place for single agency firms in today's market?

Powell: Sure. Single focus corporate real estate firms aren't going away. Interestingly, if you look back decade to decade, you will find these firms often grow with talented people and in more cases than not, morph or sell into larger full service firms with the uniform stated objective: improved results for clients. Nonetheless, there will always be plenty of smaller and mid-sized corporations that continue to rely on their advice and expertise.

To see a video explaining how one tenant valued a full service approach in selecting a new Silicon Valley headquarters, click here.