Sotheby’s International Realty closes two L.A. market offices

Brokerage vacates Sunset Strip and its Encino office space and merges operations into nearby brokerages

A photo illustration of 9255 West Sunset Boulevard (LoopNet, Getty Images)
A photo illustration of 9255 West Sunset Boulevard (LoopNet, Getty Images)

Sotheby’s International Realty is bidding farewell to its Sunset Strip office and its Encino office, The Real Deal has learned.

A representative of the brokerage said that its Sunset Strip and Encino brokerages would merge into nearby offices.

“Our strategy has always been to focus on the most impactful locations in our markets. In Greater Los Angeles, we are integrating two offices: our Sunset Strip Brokerage with our Beverly Hills Brokerage, and our Encino Brokerage with our Sherman Oaks Brokerage,” the representative, who declined to be named, said in an email.

No confirmation was given about any staff cuts or who would manage the integrated offices.

Sotheby’s representative also noted that an increasing reliance on technology has reduced the need for multiple office locations.

The email said the brokerage works “to offer our agents more digital tools and technology to seamlessly serve clients at any time and any place,” thus necessitating fewer office locations.

Sign Up for the undefined Newsletter

According to Sotheby’s website, the company operates about 20 brokerage offices in the Los Angeles area, which includes some offices in Los Angeles County’s South Bay, as well as Orange and Riverside counties.

Over the past few years, there has been a tension between tech-enabled brokerages and more established brokerages over whether to maintain large offices. Neema Bardi, founder of Atllas, a Los Angeles-based tech enabled brokerage, said overhead costs of maintaining an office was burdensome.

“Office space was a perk many brokerages offered,” Bardi said. “But when you pass by real estate offices, they are almost always empty. As a real estate agent, your job is always on the go.”

Bardi added that brokerages can invest in big offices or tech platforms, but it’s hard to juggle both.

A Sotheby’s statement said that the brokerage had a portfolio of 1,000 offices around the globe. Sotheby’s parent company is Anywhere Real Estate, which also owns other brokerages, including Corcoran, Coldwell Banker and Century 21.

Read more

Realogy CEO Ryan Schneider (Realogy)
Residential
New York
Realogy rebranding as Anywhere Real Estate
Chris Poore (Sotheby’s International Realty)
Residential
New York
Top BHS agent jumps back to Sotheby’s
Residential
Los Angeles
LA residential sales drop 21%