For the 15th year in a row the National Real Estate Investor (NREI) magazine reported that CBRE is the top firm in the world with over $300 billion in leases and sales transaction volume in 2017. That’s Billion, with a “B”.
This year NREI ranked the top 64 brokerage houses. The article notes that “Overall, four firms cracked $100 billion in deals, while nine exceeded $20 billion in volume and 15 were over $10 billion.” Note: Cushman & Wakefield and NAI Global elected not to report information for NREI’s article.
Cushman not reporting is no surprise, as they were preparing for their recent IPO. NAI Global is rumored to be positioning itself for a “capital event” — but then again, so are many of the companies listed by NREI.
WHAT THIS MEANS TO ME…
I interpret this data several ways. First, the top 5 firms are generally not surprising. However, when you exclude Cushman & Wakefield and NAI Global, and you consider the 5th ranked firm (Eastdil) has already announced it is closing its doors — there are considerable happenings in commercial real estate brokerage, at least on the operational side.
Firms such as TCN, ranked 7th and above more organized formal firms like Marcus & Millichap (by over $20 billion in transaction volume) reflects that brokerage isn’t owned solely by the “big boys” — there are plenty of opportunities out there.
REMAX Commercial reporting volume higher than Lee & Associates, SVN, Transwestern and CBC, reflects the power of a brand — even if that brand may be viewed as “resimercial” within the commercial community. It is certainly not hurting them in doing deals.
Personally, I was thrilled to see these numbers. If you took our coaching clients transaction volume in 2017, the results of these Massimo Group Members would rank #14, just behind Lee & Associates and ahead of SVN. Our coaching clients continue to kick butt and close deals!
WHAT THIS MEANS TO YOU…
While each firm is likely reporting their transaction velocity in their own way, this article should provide you the incentive to focus on your personal or company performance. If your earnings are not growing as quickly as the industry average, ask yourself why. And then plan to do something about it. If your company is not ranked in the top half of this list, again, ask yourself why.
To review the complete rankings by NREI, click here.
Back by popular demand, I will be joined again by tax strategist Kevin Bassett, CPA on Tuesday, August 28th at 4pm EST for a free, public webinar — Advanced Tax Strategies for CRE Professionals. During this session we will share: how to structure your personal entity for maximum after-tax cash flow, two little known tax programs that allow you to really build your wealth, and what tax loopholes are available to your CRE clients to get them to transact today! Use this link to register.
