SANTA CLARA, CA—Robby Perrino was recently named market leader and senior managing director for Newmark Knight Frank's Northern California valuation and advisory practice. In this exclusive, Perrino recently discussed the distinction between this specialty and the traditional brokerage role, along with market trends.
GlobeSt.com: How would you describe your specialty?
Perrino: We are like real estate doctors–we advise clients on how to optimize their real estate holdings as their trusted advisor. We aren't involved in the transactional brokerage side as we are providing confidential and unbiased advisement to clients on asset value and strategies for them. That advisement is based on very specialized training, expertise and technology. To illustrate: if a large institutional investor is taking down a portfolio of 500 assets in different geographies, our valuation and advisory network would then provide an educated, informed and data-driven opinion of what each asset is worth for both its sector and specific location. That information is critical and valuable for owners, investors, corporations, banks and Wall Street.
GlobeSt.com: Why did you choose to join NKF and what are your goals for valuation and advisory for the next 12 months?
Perrino: The practice of valuation and advisory has been around a long time and historically has been an afterthought, however, over the last three years or so it has evolved into something the full-service companies see as a critical part of their offerings. With that said, NKF has not only identified its importance, but has made the significant capital investment to create a seamless proprietary 24/7 technology that is well-staffed and continually maintained. In order to be successful, this system is now the new normal for our industry. My goals for the next 12 months are to continue to attract and recruit the best valuation and advisory professionals, and expand our business relationships with an emphasis on client care and strategic initiatives.
GlobeSt.com: Why is valuation and advisory an important offering for a brokerage firm?
Perrino: Valuation and advisory is a natural collaborative practice within NKF's growing full-service service platform. It allows the firm to provide innovative solutions to a growing global client base through technology and market intelligence. Additionally, from an operations standpoint, it provides a solid base of recurring revenue.
GlobeSt.com: What significant trends do you see in the market right now and why?
Perrino: First and foremost, it is globalization. In the past, companies had their holdings regionally, however, now more than ever the trend with large investors is to expand not only from US holdings but globally primarily as a result of M&A activity. Likewise, our clients are seeking knowledge, expertise and capabilities across the globe. These clients also want to make sure the information needed will be delivered in a timely manner.
GlobeSt.com: What other takeaways can you provide about this specialty?
Perrino: Another key trend in this industry is moving away from valuation and advisory generalists and gravitating to specialization in property sectors and geographic regions. For example, our clients want to see that they are being given the best possible advisement on their assets, therefore, we have specialists in diverse niches such as mission-critical data centers, senior housing, hospitality, gaming, leisure, logistics and self storage. That is also paired with expertise in financial reporting, property tax, portfolio valuation and litigation support.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
