We think this is a great question – and a strong consideration when choosing a commercial real estate firm.
Boutiques are a lot like property owners – both are comprised of original-thinking entrepreneurs that can move quickly and nimbly in times of change, or when it is warranted in a given situation.
Big brokerage firms simply are not, and cannot, because of:
- Corporate bureaucracy, structured systems, and company gridlock;
- Highly competitive and politically charged environments;
- Overloaded managerial structures and layers of employees;
- Greedy masses of brokers competing against each other while aggressively pushing their own agendas, with;
- All of the above resulting in a culture that is incongruent with their Clients’ best interests.
In our opinion, this is simply no way to conduct business under any acceptable circumstance.
By nature, commercial real estate (“CRE”) has always been – and will continue to be – based on local market nuances and granular insight. Over 80 percent of all commercial real estate transactions that occur nationally are handled by local, non-national brokerage firms. The remainder are handled by institutional investors with parameters that are national in scope, requiring the continuity of a national platform from which to execute their investment strategies. These national brokerage firms succeed by having a “Point of Contact” (“POC”) that reports directly to a Client owning multiple properties across a state, country, or even the globe – and as such has specific reporting requirements and a need for local representation in each of those markets.
But … here’s the flip side in dealing with larger national firms – numbers.
- Because they must maintain huge teams, corporate and back-office overhead, and national platforms, they require higher transaction sizes, translating to higher fees and commissions along with compromised service and attention to the Client;
- This culture results in an “all or nothing” approach, meaning that these firms will also demand a Client’s property management, asset management, leasing services, capital markets, general contracting, etc. – and, on an “exclusive” basis – because they need that fee depth to keep a large operation viable;
- As a result, and to close that gap, they end up taking assignments that aren’t the best fit for the Client or their organization, and in the process eliminating that specialized and dedicated level of service and expertise that a local Client demands, and that only a boutique can provide.
Most importantly, and as a result of the big national transaction-driven culture of these firms, the Client cannot possibly be treated and serviced in a true fiduciary capacity.
HAUTE takes a different approach, whereby the Client is never just a number. We rely on local, granular nuances and expertise. We act as true fiduciaries to every single Client, directly, and on every aspect of the transaction – from hand-crafting every engagement, marketing plan, and negotiating the best possible pricing, capital stack structure, and/or terms resulting in the fastest path to a closed, funded, and done deal – all while ensuring speed, flexibility, and certainty of execution throughout the entire process.
On behalf of the entire company, I invite you to reach out to me personally to further discuss your specific needs and requirements. We aim for your complete satisfaction and nothing less, and look forward to serving you as a fiduciary in all your commercial real estate endeavors.
Gregory J. Laskody, CCIM
HAUTE Commercial Real Estate, LLC