Amid commercial consolidation, brokers join to strengthen tenant side

Quiet dealmaker Jim Coleman is founding member of Exis Global

New York /
Jul.July 09, 2015 01:50 PM

In the niche of the commercial real estate world that focuses on representing tenants and end users, the recent wave of consolidations at large brokerages is causing concern that the negotiating table is tipped further in favor of landlords and sellers.

In a little over a year, Savills, DTZ and Colliers have acquired or been in talks to buy Studley, Cushman & Wakefield and RKF, respectively. That’s on top of consolidations in earlier cycles producing behemoths like CBRE, Newmark Grubb Knight Frank and JLL.

With the global companies getting bigger and more global, more than a dozen boutique tenant-representation brokerages in 23 cities have formed a new network they say gives tenants a stronger hand at the negotiating table.

“With the ever-changing and challenging nature of the commercial real estate market, tenants are relying, more than ever, on the advice of independent, conflict-free advisors for their space decisions,” said Jim Coleman of Hanley Advisors, one of the city’s under-the-radar dealmakers and a founding member of the tenant-rep organization Exis Global.

“Being small and independent allows us to act as a buffer between the big firms,” added Coleman, who was a top producer at Cushman & Wakefield when he left more than a decade ago to start his own firm.

While Coleman may not be a household name, he is well known in brokerage circles, and his resume includes representing Richemont last year in the $700 million sale of its St. Regis Hotel retail condo to Vornado Realty Trust and Crown Acquisitions.

Exis Global includes 15 tenant brokerages in cities like New York, Chicago, Los Angeles and Shanghai working together to give their clients more leverage.

Exis member Glen Blumenfeld, a principal at the boutique brokerage Tactix in Philadelphia, said tenants can get lost in the mix at the larger firms.

“When you go to the websites of these large, full-service firms there’s place on the website that talks about what they can do for their tenants and there’s a place that talks about what they can do for their landlords,” said Blumenfeld, whose company recently represented a 275,000-square-foot anchor tenant in one of Philadelphia’s newest mixed-use office towers, Cira Centre South.

“One says they’ll get the lowest rental rates possible; the other says the highest rates possible,” he added. “Well, that’s great in theory, but what happens when they’re both sitting at the negotiating table?”


Related Articles

arrow_forward_ios
Colliers’ Jay Hennick (Colliers, iStock)
Spike in investment sales pushes Colliers’ quarterly revenue above $1B
Spike in investment sales pushes Colliers’ quarterly revenue above $1B
Manhattan office market records busiest month since start of pandemic
Manhattan office market records busiest month since start of pandemic
Manhattan office market records busiest month since start of pandemic
Chinese developer willing to sell Manhattan supertall site at big loss
Chinese developer willing to sell Manhattan supertall site at big loss
Chinese developer willing to sell Manhattan supertall site at big loss
The total leasing volume was also boosted by mega renewals (Getty)
Manhattan office leasing up 60% in Q3
Manhattan office leasing up 60% in Q3
Geoff Newman (Photo courtesy of Savills)
Newmark’s Geoff Newman moves back to Savills
Newmark’s Geoff Newman moves back to Savills
200 Park Avenue and 1301 Sixth Avenue (Postdlf/Wikimedia, Paramount Group)
Midtown Manhattan doubles office leasing in August as rents slide
Midtown Manhattan doubles office leasing in August as rents slide
Colliers CEO Jay Hennick (Hennick, iStock)
Colliers reports major rebound in revenue
Colliers reports major rebound in revenue
From left: Vornado's Steven Roth with 11 Pennsylvania Plaza and 1540 Broadway (Getty, Jorge Láscar/Flickr, VNO)
Manhattan office rents under pressure with 17% availability
Manhattan office rents under pressure with 17% availability
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...