Coldwell Banker planning to shutter some offices around Chicago
Details on which offices and pending layoffs unclear
The bleeding continues at Coldwell Banker Real Estate. The brokerage plans to close several offices in Chicagoland, The Real Deal has learned.
It’s unclear which offices the company plans to shutter, if layoffs will follow or when the process will begin.
In a statement, Ayoub Rabah, president of Coldwell Banker Realty Greater Chicagoland, said the firm was pursuing a regionalized office footprint. When sent a list of questions regarding the possible layoffs at the closing locations, the brokerage did not offer comment, but indicated a reduction in brick and mortar locations is imminent.
“Our strategy is to focus and continue to invest in providing regional support offices — and so our needs on where we maintain physical office space has changed,” Rabah said. “Agents are now more mobile than ever, taking advantage of our company’s technology offerings, and consumers are also demanding more electronic communications and services. A large number of brick-and-mortar offices are no longer required in today’s dynamic real estate environment. What is required are regionally located state-of-the-art facilities where agents can park and obtain white-glove marketing and administrative support.”
While details are still limited, the move is reflective of the ongoing economic headwinds brokerages are facing across the U.S. as the housing market cools in the wake of higher interest rates and sustained inventory challenges. The affiliate covers Illinois, Michigan, Indiana and Wisconsin with more than 40 offices and is the largest Coldwell Banker franchise affiliate in the U.S.
It’s a pivotal time for the New York-based brokerage.
Earlier this year, its parent company, Anywhere Real Estate, announced layoffs in an SEC filing. The company did not detail the number of employees to be laid off but said its workforce has been reduced by roughly 11 percent since the end of June. The company also said it is sunsetting its iBuying division.
Anywhere’s branded brokerage firms include Corcoran, Century 21, Sotheby’s International Realty, ERA and Better Homes and Gardens Real Estate. It had nearly 200,000 agents across the U.S. as of last year.
Coldwell Banker alone brokered $11.5 billion in sales volume in 2021, across more than 10,000 transactions, according to Real Trends.
Ryan Gorman, who was the national CEO of Coldwell Banker, departed the brokerage in December. Sue Yannaccone, Anywhere’s president and CEO, is now overseeing Coldwell Banker.
Locally, the company recently acquired Chicago-based D’Aprile Properties. D’Aprile has offices all throughout Chicagoland, as well as vacation communities such as Lake Geneva in Wisconsin. Founder Ryan D’Aprile said his company did more than $1.2 billion in business last year.