Local firm @properties Christie’s International Real Estate again claimed the title of top brokerage in Chicagoland this year, but Compass is narrowing the gap with significant sales growth.
@properties has been on top in Chicago for nearly a decade since rising through the ranks after the 2008 market crash, but a meteoric rise by Compass since it arrived in the Windy City in 2017 may just change that in the coming years.
Compass has a lot of ground to cover, though, as it trailed @properties by 27 percent in sales volume, according to The Real Deal’s analysis that captures deals closed in Cook County from July 2023 through July 2024.
Despite a challenging year for residential real estate, Compass’ market share grew by about $900 million from last year’s ranking to reach just under $5.6 billion in sales across 8,617 deals, the analysis found.
The company’s local rise is a “testament to our leadership as the top brokerage in the country by sales volume,” said Compass Regional Vice President Fran Broude.
Still, @properties has a firm grip on that top spot with $7.4 billion in sales volume across 11,772 deals, according to the analysis.
“First and foremost, we want to be the best,” @properties co-founder Mike Golden said. “Second, we want to be the biggest.”
Ever since Golden and fellow co-founder Thad Wong started the firm back in 2000, the Chicago market has seen a great deal of shake-up in who’s on top of the heap, Wong said.
“You’re going to have some natural shake-out. Whenever things change and get more difficult in some ways, you’re going to have some attrition in the industry.”
When it comes to @properties’ rivalry with Compass, Wong said the two firms’ cultures are “very different,” but that he didn’t know “exactly where we’re going to end up” in the coming years.
The top 10 brokerage firms in Chicago reported a total of $25.7 billion in sales volume during the yearlong period ending in July — over $1 billion more than last year. The rankings measure both buy and sell-side deals within the Cook County MLS and omit off-market transactions and non-residential deals.
Suburban expansion and investing in tech was the name of the game this past year, the leaders of Chicago’s top brokerages said. With the downtown Chicago market still struggling to bounce back and other areas seeing record-low inventory, brokers are moving into the suburbs to meet buyers where the deals are.
“We saw significant growth in the suburban market and the luxury segment this past year,” Broude said. “Our strategic focus on these areas has paid off, and we are seeing a substantial increase in transaction volume.”
@properties has begun to max out its market share in certain areas, making it all the more crucial to push further into suburbs and feeder markets, Golden said. This meant moving further into Indiana suburbs like Highland and Crown Point, and strengthening involvement in the secondary home markets in Michigan and Wisconsin, he said. (Deals outside Cook County don’t influence the rankings.)
Subscribe to TRD Data to unlock this content
Other players moving up the ranks
Dream Town Real Estate grew by $60 million in sales volume from last year and kicked Redfin Corporation out of the No. 7 spot. CEO Yuval Degani attributed some of this to growth in the suburban market, as the firm launched an office in Libertyville.
With about 450 agents, Dream Town is a growing player in the Chicago market. Its broker Rachel Vecchio represented the buyer in the record-setting sale of a St. Regis condo for $20.6 million back in 2022, establishing the brokerage as a player in the city’s luxury market.
Fulton Grace Realty also saw growth this year, moving up from No. 13 to No. 11. The firm’s president T. J. Rubin attributed that to suburban growth as well.
“As we look at a heat map of where our transactions are, we tend to sort of gravitate that way,” he said. While it is known for its work in Chicago’s rental market, the company has been growing in home sales and strengthening its property management arm, Rubin said.
The defining event of 2024 was how residential brokerages supported their agents in adapting to the changes around broker commissions ushered in by the National Association of Realtors’ settlement of the landmark Sitzer/Burnett case earlier this year.
Policy changes stemming from the settlement led to the decoupling of commissions for brokers on the list side and the buy-side, and it barred listing agents from making a commission offering to the buyer broker through the multiple listing service. This was done to allow for more transparency for homebuyers and sellers into how their agents are compensated.
Buyers’ brokers are now required to discuss their rate with clients and have them sign a written exclusivity agreement before touring any home.
The changes created an extended period of uncertainty among residential brokers, and leaders sought clarity on what the changes would mean for the industry, rushing to support brokers in staying ahead of the curve.
@properties, Compass and most other top brokerages launched mentorship opportunities and educational programs to help buyer brokers prove their value to buyers and navigate tricky financial conversations about how commission can be paid if not offered by the seller.
“There are a couple moments in the last 24 years where, personally, I’ve been the most proud of the organization. And I would say this year, 2024, is by far number one,” Wong said of the company’s response to the NAR changes.
It’s been a steep learning curve for some, though, and brokers suspected the changes would push part-time or lower transacting agents out of the industry.
“You’re going to have some natural shake-out,” Golden said. “Whenever things change and get more difficult in some ways, you’re going to have some attrition in the industry.”
“For us, it’s really just making sure we’re focused on the people who look at this business as their profession and their careers,” he added.
Dream Town Realty, which got its start as a real estate tech company, supported brokers by adding a capability to its software that allows agents to create a buyer’s broker agreement “on the fly … at the click of a button,” Degani said.
Fulton Grace “doubled down” on its commitment to helping agents “thrive and succeed,” professionally and personally, Rubin of Fulton Grace said.
“We want (agents) not just doing well financially, but also succeeding in terms of quality of life, happiness,” Rubin said.
This preparation will be tested even more in the coming months as some expect the slower fall market will begin to pick up at the start of next year if the Federal Reserve’s interest rate cuts are enough to bring more buyers out of the woodwork.
Access data and contact information from this ranking here. TRD Data puts the power of real data in your hands.