'Andare' dares to downsize the real estate office
Intero thinks small with high-tech, low-overhead concept
By Inman News, Thursday, March 12, 2009.
Flickr photo by pfrench99.Editor's note: This month, Inman News is focusing coverage on ways to rethink the traditional real estate office using technology and other efficiencies. This article profiles "Andare," a new office concept created by Intero Real Estate Services Inc.
By ERIK PISOR
An open floor plan featuring leather sofas, chairs, cafe tables and large central work consoles, within a high-end retail development in California's Silicon Valley, may sound like an Apple store or coffee shop.
But this no-cubicle floor plan is Intero Real Estate Services Inc.'s new office model, dubbed Andare. The concept is simple: a smaller, technology-rich office to better meet the needs of today's mobile real estate agents.
"Agents aren't spending as much time at their desks as they were 10 years ago," said Gino Blefari, president and CEO of Intero. "They don't need cubicles. They need an attractive space with a few secluded areas where they can go to meet with clients and have access to technology."
Intero opened its flagship Andare office during early 2007 in a popular, high-end retail development known as Santana Row in San Jose, Calif.
The office features three small communal areas, complete with sofas and chairs, two private offices and a conference room with floor-to-ceiling glass walls.
"It's not a typical real estate office environment. Everyone works out in the open," said Robert Whatley, a first-time homebuyer working with an agent from the Santana Row office. "You (a buyer) have a major decision you're making and you're already nervous. You don't want to walk into something that feels like a prison or hospital."
The Andare office model is designed for 1,000-3,000-square-foot office spaces -- significantly smaller than Intero's traditional offices, which range from 7,000 -11,000 square feet.
"Clients love it. Some agents like it and some don't," Blefari said, explaining that some of the older, more seasoned agents prefer the traditional real estate office setup.
Aside from square footage and design, another component of the Andare office model is its technology, including tablet PCs, keyless entry, Internet-based voice communications, plasma televisions, and a high speed wireless Internet network.
The office also uses Web-based transaction management software that gives agents the ability to manage entire client files online and eliminates the need for paper and storage, Blefari said.
Clients can input electronic signatures on PDF documents, and Intero stores the files securely online.
"This setup is great for me because I have access to the best technology and the space fits my work habits," said Gerald Askew, an Intero agent at the Santana Row office. "I go to the office as needed to access the network, meet with my team and finalize deals."
Since establishing its first Andare office, Intero has opened additional Andare offices in other California cities, including Carmel, San Jose, Menlo Park, Santa Cruz and Truckee.
The company now has more than 135 agents working in the six Andare offices, which are all located within higher-end retail developments.
"This (the Andare office model) is the only way we'll open up another office," Blefari said.
In late August 2008, Intero announced it would offer the Intero Andare office to Intero franchisees nationwide. The company has more than 2,000 agents in 53 offices serving California, Arizona, Colorado, Florida, Hawaii, Nevada, Texas and Mexico.
"We launched our Intero franchise in the middle of the housing slump (early 2008) and needed to keep our startup costs as low as possible," said Joel Valencia, an owner of an Intero Andare office. "This design allowed us to do that, and we were able to reach profitability very quickly."
The smaller design footprint of the Andare offices means it's approximately 70 percent less expensive to build than Intero's larger offices.
Also, the smaller footprint equates to fewer construction materials and waste, and less energy consumption and overhead in maintaining the office.
Erik Pisor is a freelance writer in California.
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Submitted by Anthony Longo on March 12, 2009 - 4:37am.
We are a fan! We did the same thing when we flipped from online advertisement company to web-based brokerage in 2008.
We now all operate out of a 3,500 wide open loft space. Not 1 wall in the place! I am not sure if it was the 'Boiler Room' quote that "motion creates emotion" or the fact that I just love lofts.
Our space is filled with light, its loud, its active 12 hours a day and creates a lot of energy for our agents on the run who want to pop in and pop out throughout the day. I wouldn't do it any other way.
We posted some pics on our blog here: http://www.condodomain.com/blog/the-condodomain-loft/
Anthony Longo
Founder & CEO, CondoDomain.com
Submitted by Robert A. Hulme on March 12, 2009 - 4:37am.
The Intero Andare office sounds like something that just might work. Inovation is very important today, Brokers need to try and find ways to motivate their agents and this just might be the ticket.
Robert A. Hulme
Realtor, GRI, e-PRO
Prudential Utah Real Estate
Loan Officer
Mortgage Xpress
www.UtahCountyRealtor.us
www.UtahCountyHomes4Sale.com
801-885-2586
Submitted by REALonomics .net on March 12, 2009 - 5:28am.
I have but one simple message for Gino Blefari, President and CEO of Intero:
Go baby, go!
Donald Teel - Founder
e-Partner
www.ePartnerUSA.com
REALonomics
www.REALonomics.net
877-380-1000
Submitted by Larry Whited Sr. on March 12, 2009 - 5:40am.
This is an outstanding article and is a preview of the future of real estate.
Question; who benefits from the savings; the seller, the agents or the broker?
We formed www.maxUnet.com as a total virtual real estate franchise based on the successful virtual real estate brokerage www.WebMLS.net.
I started WebMLS seven years ago as one of the first all virtual real estate brokerages. We have over 100 agents spread out all over Ohio.
We have no office, no employees and virtually no overhead except the 10 board & MLS fees I must pay to belong to.
Virtual is the future. Large Offices are tombstone monuments to the past.
Larry A. Whited, Sr., CRB, CRS, GRI
President & Founder
www.maxUnet.com & www.WebMLS.net
P.O. Box 757
West Chester Ohio 45071
Direct - (513) 543-2727 Fax - (513) 297-7497
Submitted by Tom Sykes on March 12, 2009 - 5:43am.
Intero is definitely going in the right direction. I'm curious about commission plans for their agents. What's the splits, fees, etc.? Brokers are extremely competitive here in Michigan when trying to attract real estate agents.
Thomas Sykes, Director of Interactive Marketing
CENTURY 21 Town & Country
http://century21town-country.com
http://century21town-country.com/blog
Submitted by Lisa Keith on March 12, 2009 - 7:19am.
This is so interesting! My firm, Red Hawk Real Estate, was founded 3 years ago on exactly those innovative ideas - our 'technological leadership pillar'. We have had in place the use of PC tablets, online transaction management and wireless technology from the start in an untraditional environment. Our Social Commitment to our community and Environmental Responsibility round out our 'three pillars'. Good to know we were/are on the right track for the future! Check us out at redhawkre.com.
Lisa Keith
President/Broker Red Hawk Real Estate, Inc.
redhawkre.com
direct: (650) 703-8644
3520 Alameda de las Pulgas
Menlo Park, CA 94025
"Expect something different"
Submitted by Rick Hardman on March 12, 2009 - 7:26am.
This is a company that will be around a long time because of their ability to adapt to a changing world. I suspect that the agents that cannot adapt, will not be around so long.
real estate new jersey
Submitted by Geordie Romer on March 12, 2009 - 7:48am.
The coffee shop or Apple store look is a good fit for a hip urban environment. I'm curious about how folks envision the 21st century office in a rural environment. I think in a mountain town like mine, something with more of a ski lodge type feel might work. Thoughts?
Leavenworth WA real estate agent
@geordieromer
http://iciclecreekrealestate.com
Submitted by Shuki Haiminis on March 12, 2009 - 7:58am.
I think your right Geordie. It is not so much the look but the technologies that make this new office prototype work well. We all can admit that everyday more and more people are moving online to do their preliminary real-estate searches. Being able to tie in the ease and convenience of all the other facets of the transaction make sense.
I saw some pictures on FOREM but was wondering if you guys had any more detailed ones to view.
Submitted by Tina Fountain on March 12, 2009 - 8:20am.
Companies have to be able to change and adapt to remain competitive, otherwise they will eventually fall behind and fail.
Submitted by Tina Merritt on March 12, 2009 - 9:19am.
What a great environment you have offered to the agents and the consumer. Professional, technologically advanced, comfortable....exactly what an office should be. I wish we had that here....
Submitted by Marc Davison on March 12, 2009 - 10:00am.
Good post. More coverage can be found along with photos of the space published last month by Ash Munshi. http://www.terabitzblog.com/2009/02/rethink-your-real-estate-space-offic...
Marc
1000Watt Consulting
Turn On!
Submitted by Marc Davison on March 12, 2009 - 10:07am.
@Geordie - What works for Intero will on Santana Row look wise will NOT work for other brokerages in their own environments. These environmental branding ideas are about taking your brand into the 21 Century and are meant to express to YOUR customer what YOU mean - not what Intero means. So yes, in your town, a mountain ski lodge look and feel is a great start. But the idea of an open space that invites the consumer in a great place to start.
Marc
1000Watt Consulting
Turn On!
Submitted by Brett Lieberman on March 12, 2009 - 3:04pm.
Technology has enabled the real estate business to change course. With the advance of so many new tools designed for the consumer and for the agent, a traditional real estate model is not needed today. Virtual offices are a great benefit to the agents. All of the technology is available without having to go into an office. Since most agents work from their home offices anyway, they should be earning higher commissions from their respected brokers.
Many companies are now offering these solutions to agents. Our company Real Innovate Realty offers 100% Commissions and charges a $495 Flat Fee Per Transaction. We also operate throughout the state of California. (An added benefit of being virtual.)
Submitted by Scott Gill on March 16, 2009 - 11:04am.
Gino, I have seen your office at Santana Row and you guys did a great job with it, and I want to welcome you to the reduced brick & mortar “club”! A limited square footage office supporting robust technology is the franchise office model we developed and deployed at Realty World Northern CA, Inc. in 1997. Our model was configured to accommodate a virtual, home or boutique office from 800 to 2,000 square feet. At that time critics said real estate offices had to be BIG in order to compete and successfully recruit, accommodate and retain agents. For our organization, growth was explosive in terms of franchise unit and agent count which is currently 350 and 1,700 respectively. It seems that the real estate industry is finally catching on due to necessity, which I suppose is a peculiar benefit of a difficult market.
To address Larry Whiteds question above, “Who benefits from the savings; the seller, the agents or the broker?” The answer is usually, all of the above. Since the broker is operating on a much higher profit margin, they have the ability to allocate more capital to attract productive agents and reward consumers. Clearly, business models like Realty World Northern CA Inc., Intero’s ‘Andare’ and others like it are the future of the industry.
http://www.realtyworldNCA.com
Scott Gill
Sr. Vice President
Realty World Northern CA, Inc.