Week of February 11, 2002
Snapshot from the Field
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The C&W Alliance:
Is Six-Market Pact,By JACK LYNE, Site Selection Executive Editor of Interactive Publishing
Including Former Offices,
Harbinger of Trend?
NEW YORK CITY -- In what could prove to be the harbinger of an industry trend, Cushman & Wakefield (C&W) has announced a major new initiative, the Cushman & Wakefield Alliance. The newly minted network of independent real estate firms spanning six U.S. markets will bear the brand of C&W-allied companies.
Alliance Head: Pact Enhances
Among those anticipated payoffs are the creation of new channels for C&W's advisory, asset, corporate and international services, as well as its strategic ventures business. In addition, the six partnerships will provide clients in non-C&W markets with "the scale and scope of C&W expertise," including the company's research, consultation, marketing and technology groups, according to C&W officials.
"The Alliance enhances C&W's span of control and continuum of broad, quality services for our clients in these markets," Mashore said. "At the same time, they allow C&W more effective access through quality local real estate firms and former offices that benefit from using our multiple services."
The first six firms tapped for the Cushman & Wakefield Alliance include:
Will C&W's Contemporaries Follow Suit?What template may be laid down here is harder to specify.
At least the case of Commercial Jacksonville, however, C&W sold its operation to several local brokers, reported The Business Journal of Jacksonville (BJJ).
Local control offers its own compelling logic. So, too, does using affiliations, rather than company-owned branches, to establish operations in second-tier markets, said Larry Richey, C&W's managing director for Florida.
"Frankly, it makes the most sense because of our desire to expand and formalize relationships in areas where we don't have an official office," Richey told BJJ.
The larger question here may be, how sensible is C&W's logic? Pretty sensible, say some industry observers, who expect other real estate service providers to follow suit. Opting for the affiliate route, they say, offers a lower-cost, lower-risk strategy for entering new or heretofore sluggish markets.
That argument's validity, of course, remains to be seen. And so, too, does how fast the C&W Alliance expands.
C&W is in no rush to enlarge the range of the partnership, Mosler has said. Richey, on the other hand, said that the Cushman & Wakefield Alliance hopes to expand into 20 new markets. As for C&W, the 1917-founded operation will surely employ its well-honed market instincts in finding the proper pace needed to extend its new initiative.
The broader questions here stirred by the formation of the Cushman & Wakefield Alliance may, in the long run, prove to be more intriguing:
Will C&W's contemporaries, for instance, emulate its alliance strategy?
If so, when - and where?
And if so, how?
©2002 Conway Data, Inc. All rights reserved. Data is from many sources and is not warranted to be accurate or current.