Massey Knakal shrinks agent pool by 1/4
October 10, 2008 11:33AM By Adam Pincus
Ken Krasnow
In the midst of the financial crisis, commercial real estate firm Massey Knakal Realty Services has reduced the number of agents by a quarter to 46 from 63, in order to increase the brokers' territories, the company's chief executive officer said.
Paul Massey Jr., CEO and co-founder of Massey Knakal, said the reductions were not made in reaction to the weak marketplace, but to increase the potential sales volume for the remaining brokers.
"Everyone will think this is in reaction to economic externalities, but the planning for the growth in territory size has been going on all year," he said in an interview.
The latest round of cuts was last month. Compared to the start of the year, the number of agents in Brooklyn and Staten Island has dropped to 14 from 21; and Queens and Nassau has declined from 15 to eight, Massey said. Manhattan, the Bronx and Westchester has fallen by three to 24 brokers.
The firm expects to open 12 additional territories in New Jersey over the next year and a half, he added.
Massey Knakal, founded 20 years ago as a brokerage for small- to mid-size commercial investment sales in New York City, was ranked 23rd in a national brokerage survey by National Real Estate Investor in July, with $2.2 billion in sales in 2007.
The city saw a 31 percent decline in commercial real estate sales in the first half of the year, the firm reported last month. Also this year, private employment in the five boroughs dropped by 32,000 jobs in the first seven months, including about 1,500 between July and August in real estate-related fields, according to data from the Bureau of Labor Statistics.
John Falco, a former Queens broker with Massey Knakal who lost his position in the reshuffle, attributed the job reductions to the tough economy.
"All the real estate firms are feeling the pressure from the credit crunch," said Falco who is nevertheless upbeat about opening his own brokerage firm.
He and broker Rubin Isakharov, who worked together in the Queens' office, opened their firm, Falco and Isak Realty Services, about a month ago. The firm has four listings in Western Queens.
"It is a great time to build your name. Obviously the volume and transactions will not be the same as the previous year, but some of the best companies have started in hard times," he said.
Massey said discussions to reduce the number of brokers began in January, and the final decision was made in the spring. Overall employment at the brokerage has dropped to 146 from 191 at the start of the year, he said.
The firm has made upper management changes as well. Ken Krasnow, who most recently served as chief operating officer at Apartment Realty Advisors was brought on Monday as managing director of the Brooklyn office. He is a former executive vice president and director of brokerage services at Trammell Crow Company and before that served for 18 years at Cushman and Wakefield, most recently as executive managing director for the New York metropolitan region. Krasnow, who is not a company partner, will also serve on the company's senior management team.
The Brooklyn director position has been vacant after departures by Timothy King, who is suing the company for allegedly failing to provide audited financial statements, and his successor, Brian Leary.
The hire was part of a management philosophy change away from brokers leading offices. The Queens office, however, is still managed by broker Tom Donovan, Massey said.
In August, the firm announced that Kyle Mast would run the Manhattan office.
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Comments
Steeplechaser
Massey's going down.
Comment #1 Posted By: Steeplechaser 10/10/08
MarketMaker
Not sure how much weight paragraph two holds.?.?.
Comment #2 Posted By: MarketMaker 10/10/08
Anonymous
I give Krasnow 3 weeks until he realizes he has made the worst decesion of his life.
Comment #3 Posted By: Anonymous 10/10/08
Anonymous
Bad decision to let those brokers go. It's creating enemies. Given all the uncertainties in the marketplace with loss of jobs, etc. what's the harm in having a few extra brokers around. They work on commission and don't cost Massey anything. This move will be percived as excessive greed -- cut out people's livelihood so those at the top can continue to make all the dough. The plan will cause more harm than good in the long run.
Comment #4 Posted By: Anonymous 10/11/08
Anonymous
I know for a fact that the vast majority of MKRS brokers have left because they quit, not otherwise. The entire vibe of that place is that no one wants to be there anymore. While the market conditions have a lot to do with that, the poor management and complete lack of loyalty from the higher ups contributes just as much. Should have sold it to CB when they had the chance.
Comment #5 Posted By: Anonymous 10/11/08
Anonymous
What happened to the lawsuit with Tim King at CPEX? They were due in court Oct 1. Anyone knows?
Comment #6 Posted By: Anonymous 10/11/08
Anonymous
MK takes advantage of the financial crisis to get rid of all the dead weight and problematic brokers, only the strong survives.... fyi MK still rocks, they are the only one closing deals on a weekly basis all the MK wannabe are starving to death, there's no megadeal out there and MK has a strong monopoly on the small to mid market, believe it or not, they are the only one with a platform and proven systems, that generate results, ask any savvy owner whom he will use to get top dollar,
Comment #7 Posted By: Anonymous 10/11/08
Anonymous
good for the MK guys, I am glad theyre making money however someone should tell one of the partners to get a haircut, Im not sure what his name is massey or knakal but I saw him at a panel of real estate speakers and he has long hair and a full beard, he looks like he is going thruough a mid life identity crisis, he not longer a teenager and looks unprofessional with that long hair specially to be one of the partners not cool at all
Comment #8 Posted By: Anonymous 10/12/08
Anonymous
all these comments are pretty funny... as an ex MKRS guy the one thing I'll guarantee is they'll be in business for long long time.
Comment #9 Posted By: Anonymous 10/13/08
Anonymous
I think they used to claim to have 80-90 brokers there. I think they strategically cut or lost half.
Comment #10 Posted By: Anonymous 10/13/08
Anonymous
What ever happened to investigating reporting? Or did Massey give The Real Deal a threat they couldn't refuse? What happened to the lawsuit with Tim King at CPEX? They were due in court Oct 1.
Comment #11 Posted By: Anonymous 10/13/08
Anonymous
Massey rocks and people are just jealous of Knakal because he is one of the few who still has hair...
Comment #12 Posted By: Anonymous 11/21/08
Anonymous
I AGREE WITH THE LAST ONE!!!!!!!! MASSEY ROCKS. AND HE DOSNT WRITE ALL HIS COMMENTS LIKE TIM KING DOES!!!!!!!!!
Comment #13 Posted By: Anonymous 11/21/08
Anonymous
What did massey do?..... uhhh nothing! Massey was friendly and nice to king and what does he do? [TRIES] SUES MASSEY!
Comment #14 Posted By: Anonymous 11/21/08
Anonymous
Nobody realizes that although brokers work on commission, it still costs money to have them around. Paul and Bob dont need to pay expenses for a broker that isnt producing business, If a Broker was getting listings and selling the property, they wouldnt just be letting them go, Trust me I have seen these men in action they DO NOT let go of a good thing! Not anonymous and pround, ex employee... Robert K. Khodadadian
Comment #15 Posted By: Anonymous 12/04/08
JH
I have been in the (real estate) business since 1984. Bob & Paul are great at what they do--in fact they reinvented the wheel. The last time I looked, the best way to grow and improve a rose bush is to prune it.
Comment #16 Posted By: JH 01/06/09