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Brokers Are From Mars, Managers Are From Venus

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When times are tough, brokers tend to want to manage. When times are good, managers tend to want to do brokerage! It happens with every phase of our industry’s economic cycle.

That is fascinating to me, and very logical. We all want to follow the money and each side of the industry makes it appear to look easy to the other side. Why? Because the grass is always greener on the other side of the fence!

But, there is one problem here. Brokers are from Mars and managers are from Venus! I am using the title of the well known book, entitled Men Are from Mars, Women Are from Venus, because it paints the picture so vividly. What I mean by that is simple. Brokers are deal makers and promoters, while managers are analytic and detail oriented. Now, I can also argue that we have much cross over as well, but generally speaking, managers are not risk-takers and brokers are not happy doing the nitty-gritty of property management, IMHO. That is a very general and stereo-typical view, but I believe as human-beings, we do what we do for a reason. It is born into us and then through education, mentors and experience we build on that.

Brokers are deal makers and promoters, while managers are analytic and detail oriented. Click To Tweet

Now, take the reality of our industry and add it all up. What happens is that we all look for ways to increase our sales or add properties. We see the other side making money during their cycle upswing or we have clients who ask us to do more! Now it seems we should jump into that other side and do it. For some, it can work. In those cases, I believe it works via partnerships. For instance, if I partner with a property manager and we join forces, for example. The reason this happens is because, locally, there are only so many properties in our markets and typically when properties trade hands, it is the opportune time to pitch the new leasing or management assignment. I find it intriguing so I decided to poll our audience and discuss this topic to hear what others have to say.

The question becomes, if you are a broker, do you add management to your service offerings and if you are in management do you offer brokerage? Or do you consider simply outsourcing or forming strategic alliances? Here is the question I posed and I am so pleased to share their responses:

Q. As a broker or property manager what advantages do you see in outsourcing your services to another firm that does not provide any competition to what you are already doing?
A. Lance Langenhoven – The Commercial Professionals
I see benefits to both parties providing the service and I see benefits to the client especially as they get the professional service they deserve instead of someone simply “doing the minimum” to cover that area of operation for the client. If  both parties go into this with a “giver’s gain” attitude instead of a “what can I get out of this” then I think the rewards will ultimately come through better & more referrals between the two service providers.

A. Doug Mellen – Leonardo Management
I think it’s crucial for those commercial real estate service providers, not fully vertically integrated, to form strategic alliances such as these.  More and more, as a manager, we’re finding value in our ability to reach into our network and refer trusted service providers to our clients to meet their assets’ needs which fall outside of our realm of expertise.  That said, while both the brokerage and management groups receive a windfall of new business, I think the biggest beneficiary from these alliances is still the client.  Both the brokerage and management spend their resources developing and honing their respective crafts to become true experts and market thought leaders.  When these specialists align, the client receives the best possible solution rather than working with an integrated company which might be “thin” in one or two concentrations.
It happens with every phase of the #CRE industry's economic cycle. Click To Tweet
What do you think about the advantages, or disadvantages? Remember, if your firm only performs one service, what would be your approach to solving this demand or client request? Thanks to Lance and Doug for their thoughts and time. Look for more posts and let us know if you are willing to contribute to our blogs or even become a guest blogger on our site!

tBL Twitliography

Follow Lance Langenhoven of The Commercial Professionals on Twitter, here.

Follow Doug Mellen on Twitter, here.

Oct 20, 2012Linda Day Harrison
7 years ago 6 Comments Brokerage Life & LeadershipBrokerage Business, commercial real estate services, CRE Economics, CRE Services, Doug Mellen, Lance Langenhoven, Property Management Business381
Linda Day Harrison

Follow me on Twitter @DayHarrison or connect with me on Linkedin or check me out on tBL Linda Day Harrison.

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Comments: 4
  1. Howard Kline
    7 years ago

    Good post and so true, so true. I’ve have a really good friend that I have known since the 80’s who was the best property manager that I have ever known. At around 2000, he became a broker and did pretty well but has struggled mightily since 2000. I think that he would prefer to think of himself as more than a property manager but, you know, he was really good as a property manager. It doesn’t pay as much in the good times but pays more in the bad times. I’ve been a broker and an attorney and I would like to think of myself as more than an attorney. But truthfully I wasn’t really a good broker.

    ReplyCancel
  2. Customer Service
    7 years ago

    Thanks Howard, that is exactly the point. During these tough economic times we have heard so many brokers say they want to add property management to their services. It all sounds so good and easy, but it is so fraught with problems and major considerations. Most property management firms have more than enough bandwidth and infrastructure to take on more business. These firms have the economy of scale and I always suggest that a broker consider teaming up or partnering before they leap! Folks like Leonardo Management do nothing but property management and pose no threat to a good broker or brokerage firm! Guys like Lance Langenhoven at The Commercial Professionals, are excellent brokers and need to walk before they run into starting their own pm department. I just say think carefully before you jump ship on doing what you do best! Thanks for reading and reply Howard, it is much appreciated.

    ReplyCancel
  3. theBrokerList
    4 years ago

    Had to do this one for throwback Thursday! One of my faves!

    ReplyCancel

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