NASHVILLE—If an outsider were to peer into the commercial real estate industry, and gauge by the headlines, he or she might walk away with the impression that there are only a handful of major, national firms doing deals. If that same person were to attend the upcoming SIOR Fall World Conference here next week, enlightenment would come.
For, as insiders know, this is a diverse industry made up of an array of the aforementioned big boys, both national and global, and boutique local and regional firms as well, and the leaders of SIOR are quick to point out that the Nashville program, indeed, SIOR itself, is geared to address the needs of all. That's exactly what Robert Thornburgh, SIOR, CCIM, did when he sat down with GlobeSt.com recently. Thornburgh was instrumental in creating the association's Independent Brokerage Group, representing a full 45% of total membership. He is also CEO of Heger Industrial in Los Angeles, CA.
GlobeSt.com: So, do the big firms in fact conduct the majority of the business?
Robert Thornburgh: Anyone that takes this business seriously gets their fair share of wins. Our industry has a unique balance of boutique, regional, national and even global players, each serving a distinct group of clients based on a multitude of factors such as submarket, product type, expertise and of course relationships. Independents cover a very large segment of the business. There are countless examples of independent brokers representing national credit tenants or institutional ownership groups, and that's just a fact. Of course it's hard to ignore the presence that larger firms maintain, but I would argue that technology and the access to timely information and data has helped to level the playing field. In the end, this is a knowledge business. I always tell our people that the human element will never go away, and that's really what we sell.
GlobeSt.com: You mentioned technology and timely information, and I was expecting you to add networking to that mix.
Thornburgh: Without question. The tie-in of course is that the SIOR organization already provides this unique platform. We haven't lost sight of the importance of collaboration and networking. There are common threads with what people want in their businesses. We get the direct benefit of having 3,000 members in our organization from varying firms—boutiques, regionals and nationals all with distinct expertise in varying markets and perhaps more importantly, a willingness to share ideas. It's hard to not gain a tremendous amount of knowledge in this type of setting.
GlobeSt.com: What are some of the issues that are specific to the smaller firms? Visibility I would think is one.
Thornburgh: Visibility and perception, whether right or wrong. I often hear the question, can the independent compete with the national guy? As I alluded to before, it's the local knowledge that will ultimately benefit the client. How we best portray that and educate those potential clients on our experience is critical. I think much of this comes down to doing a better job at telling our individual story…therein lies the challenge.
GlobeSt.com: There's certainly no comparison in advertising firepower.
Thornburgh: When comparing advertising budgets that is a fair statement. However, thought leadership is different from a print ad. In the end, branding is not just about pretty graphics, it is about every consumer interaction you have.
GlobeSt.com: How will all of this manifest itself in Nashville?
Thornburgh: The word "collaboration" comes back again. At every conference, there are a series of educational and networking events that are tailored specifically to a variety of interests for independents, national and global firms, and no one is excluded. It's an opportunity to get together to discuss both issues and success stories. Innovation, creativity and entrepreneurial thinking are encouraged, serving as a catalyst for our members – generating new ideas they can take back to the office and implement. But to take full advantage of that knowledge, attendees have to realize the opportunity. It's easy to get distracted and miss events that are important to your career. You have to really get involved to tap into the advancement resources that are available through SIOR.
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John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
