Compass will soon consolidate three real estate offices in Silicon Valley under one roof in Los Gatos.
The New York-based brokerage will close offices at 12772 Saratoga Sunnyvale Road in Saratoga and 16268 Los Gatos Boulevard in Los Gatos, the Silicon Valley Business Journal reported.
By next month, more than 100 agents and employees will be re-assigned to the 17,000-square-foot office at 750 University Avenue, in Los Gatos, which will serve as the Compass hub for Silicon Valley.
But because of remote work, about 300 people will generally show up to the office.
The move comes after Compass acquired Pacific Union and Paragon in 2018 and Saratoga-based Alain Pinel Realtors in 2019, with the firm trying to consolidate its staff, agents and offices.
“Work habits have changed for American workers, and particularly independent contractors, where they seem to use the office in a different way,” Kevin Patsel, regional vice president for Northern California at Compass, told the Business Journal.
“It’s a nod to the new way that we have found our agents to work.”
Since the pandemic, Compass agents and staff have primarily used offices for appointments, to swap information, meet with staff, conduct training and get essential work done, he said. Agents now have a hybrid schedule, with support staff reporting to the office full time.
Compass, which went public in 2021, has a $3.2 billion market capitalization, with more than 300 offices and 33,000 agents across the U.S.
It’s the largest real estate brokerage in Northern California, with $10 billion in annual sales for San Mateo County and Santa Clara County last year, and $6.75 billion from Santa Clara County alone, according to the firm.
Compass, however, is still rebounding from a sluggish housing market.
At the end of last year, the firm posted a $321 million net loss and negative $1.2 million net income. But by the second quarter, Compass posted a net income of $20.7 million, compared with a negative $47.8 million a year earlier.
— Dana Bartholomew
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