Coldwell Banker office offers coffee and Wi-Fi
Satellite offices share managers with larger regional offices
By Glenn Roberts Jr., Thursday, March 19, 2009.
Coldwell Banker's new Huntington Beach, Calif., officeEditor's note: This month, Inman News is exploring new designs and functionality for real estate offices, and the use of technology to assist more virtual-office operations. Click here for details.
Coldwell Banker Residential Brokerage in Orange County, Calif., is banking on a new breed of office to satisfy agents' and clients' needs while providing more efficiency in operations.
This week, the brokerage opened a new office, which the company dubbed an "entertainment conference venue," in Huntington Beach, Calif., to serve as a satellite to a larger office in Newport Beach.
The 1,850-square-foot satellite office features a coffee bar, Wi-Fi, three lounges, two conference rooms, and a 42-inch flat-screen monitor for viewing properties, among other amenities. About 50 sales associates will work out of this office.
"Think of it as a very high-end boutique Starbucks type of facility," said Jeff Culbertson, regional executive vice president for the Southwest and Sacramento Region of NRT LLC, the parent company of Coldwell Banker Residential Brokerage that oversees company-owned operations for Realogy Corp.
Culbertson noted that while there has been a general trend in office closures and consolidation throughout the industry, the facility represents a "new wave of office environments for our company as it transitions away from the bricks-and-mortar brokerage firms of the past."
He said that there are dramatically fewer real estate offices in commercial spaces now than there were just three years ago, toward the peak of the latest real estate boom.
"I would have to believe -- if you were to analyze it -- there are maybe two-thirds fewer offices today than there were then," he said.
The Huntington Beach office is not the first Coldwell Banker satellite office of its kind, and it likely won't be the last.
Culbertson said the latest office follows the example of an office in Manhattan Beach, Calif., that is a satellite to the company's Palos Verde office.
Other examples include a La Canada office, which is tied to a larger Pasadena office, and a Fountain Hills, Ariz., satellite office.
The satellite offices typically share managers with a larger regional office, Culbertson said, and lack the staffing level of those larger offices.
"Most of the business is done outside of the office anyway," he noted. Technology is a big enabler -- he uses a BlackBerry device for mobile voice and Internet communications and his son, who is also in real estate, carries an iPhone.
He said he told an audience at a California Association of Realtors conference that "if you don't have one of these in your pocket you will no longer be in the business a year from now."
In many cases the company's agents are drivers of the new office structures, Culbertson said, and it was not a matter of "build it and hope (the agents) would come."
He added, "We had agents come to us and say, 'Why don't you do this? If you did this we would definitely support that.' "
While there are opportunities to bring new office models to other regions, that "doesn't mean all of our offices are going to look this way," Culbertson said. Realogy executives have been supportive of the efforts, he also said -- Realogy President and Chief Executive Officer Richard Smith flew out from New Jersey to get a first-hand look at the new office.
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Submitted by Larry Whited Sr. on March 19, 2009 - 4:49am.
Why would you want to emulate Starbucks? Last I read they are losing money and closing more stores.
I would rather emulate Southwest or Jet Blue Airlines; Full service, fair price, no frills. In this economy people want value. Not an “entertainment conference venue"
Larry A. Whited, Sr., CRB, CRS, GRI
President & Founder
www.maxUnet.com & www.WebMLS.net - Virtual Real Estate Franchise Systems.
P.O. Box 757
West Chester Ohio 45071
Direct - (513) 543-2727 Fax - (513) 297-7497
Submitted by Robert A. Hulme on March 19, 2009 - 5:44am.
Emulating Starbucks is a great idea. They have been very successful in the past. Taking their concept and providing a place for your clients to go similar to what Starbucks has done in the past just might work. Certainly they are not going to make it on Coffee sales, but creating relationships is what our business is all about. I think it is a great idea and hope that Coldwell Banker is successful in their endevor.
Robert A. Hulme
Realtor, GRI, e-PRO
Prudential Utah Real Estate
Loan Officer
Mortgage Xpress
www.UtahCountyRealtor.us
www.UtahCountyHomes.ws
801-885-2586
Submitted by Larry Whited Sr. on March 19, 2009 - 5:55am.
Street cars were a great idea 100 years ago. Now they are just a tourist entertainment for the most part. Are we in the entertainment business?
Virtual Is the Future, not coffee bars in real estate offices.
Larry A. Whited, Sr., CRB, CRS, GRI
President & Founder
www.maxUnet.com & www.WebMLS.net
A Virtual Real Estate Franchise System
** Virtual Is the Future **
P.O. Box 757
West Chester Ohio 45071
Direct - (513) 543-2727 Fax - (513) 297-7497
Submitted by Ruthmarie Hicks on March 19, 2009 - 6:07am.
I think this is an attempt by th "big box" brick ad mortar franchises to freshen up their stodgy images. I like coffee houses and real estate - but what real value value is there in a coffee house/real estate office? Maybe it's merely to justify high commissions and high splits for the brokerages whose high overhead has created an addiction for same.
Submitted by Jay Thompson on March 19, 2009 - 6:38am.
An "entertainment conference venue". Interesting. Silly me, I thought I was here to help my clients buy and sell real estate, not to entertain them.
I've bought my clients (and agents) plenty of Starbucks, at Starbucks. That way I don't have to stick either of them for the cost of the espresso machine.
Jay Thompson
Broker / Owner
Thompson's Realty
Blog: www.PhoenixRealEstateGuy.com
.
Submitted by Donald S. Teel on March 19, 2009 - 7:03am.
Coldwell Banker's willingness to create a new model designed to reduce overhead, attract consumers and reduce office dependency on the part of agents is refreshing.
However, the model cannot be deemed satisfactory without economic analysis. It's one thing to develop and implement a model, it's entirely another to determine if the model actually meets true market demand, produces more transaction revenue and a sustainable profit over time.
A meaningful economic analysis would need to examine several factors over time including gross commission income, selling costs per transaction side, agent count required per transaction and ESPECIALLY whether the same transactions and economic results would have been produced without the change.
If this model is a true "beta" test then economic analysis becomes the only critical determinate. Without it, CB is simply toying around and I doubt that is the case...the stakes are too high in this market for anyone to play.
Our instincts tell us this type of model is not only a first step, it may well be critical in the redevelopment of our brokerage models.
Of course, there are many, many other issues beyond the interior model design of a smaller office serving Espresso. Can more transactions be produced with fewer agents in the defined market? Is the consumer more responsive to a passive research environment than to our old, tired bricks and mortar expressions? Is the office engaging in Paperless Tools as an operating standard, 100% across the board?
At REALonomics and e-Partner we believe a comprehensive approach to the reinvention of the industry's brokerage models involves a redefinition of market followed by streamlining operations (paperless tools and transaction management), better agent modeling and a strong emphasis on consumer transparency.
An understanding of the industry's economic eras and the factors that create and change our profit models should be considered when developing street level designs.
We're prepared to support the CB initiative because we believe it is the first step in a very long road back.
Whether the industry can or will muster the resolved to commit to comprehensive redesign is still doubtful. We simply have too much structure, politics and entrenchment to quickly streamline ourselves.
Our interactions with Broker/Owners indicate that a large segment of the industry is waiting for a market turn-around as the primary thought process for resurrecting a troubled model. Yikes!
There is little stomach for taking a concept like Coldwell Banker's into wider markets on a broad scale but this is smart business.
Prototyping is the first step.
In the meantime, I, as a consumer, can stop in at the CB office, order a tall mocha (no whipped cream) and preview properties without an agent bothering me or telling me about their latest designations! I find such transparency and consumer-centricity inviting.
Good job, Coldwell Banker!
Donald Teel - Founder
e-Partner
www.ePartnerUSA.com
REALonomics
www.REALonomics.net
877-380-1000
Submitted by Judy Orr on March 19, 2009 - 7:36am.
I go to Starbucks with my clients if they're ready to buy and we're not close to my office. I carry everything with me that I need. I work at home and rarely use my office.
My husband and I recently purchased a townhouse in Scottsdale, AZ and went into a beautiful Realty Executives office with a huge flat-screen TV that we could see the contract being typed on. Although I was impressed, we were the only clients there. I think I saw one other agent plus the receptionist. My opinion was, what a waste.
I love my broker and my 100% commission with a very low monthly fee and low transaction fees. Our office is nice and has a coffee room plus a couple conference rooms. No other company could entice me with a fancier office or amenities that I would rarely, if ever, use, yet have to pay dearly for in reduced commissions.
Judy Orr
Oak Lawn Homes For Sale
Classic Realty Group
708-536-8200
Submitted by Scott Gill on March 19, 2009 - 9:29am.
Simply provide professional tenured real estate agents state-of-the-art user friendly online technologies. Give them access to superior marketing resources to help them build their businesses and make them work smoothly. Provide them support when they want it, how they want it. Compensate them generously. Give them qualified consumer leads without charging them additional fees. Stay out of their way, and they will function nicely without walls of any type. For that matter, they will even buy the coffee at the local Starbucks or Peets of the clients choice … no problem.
We developed, implemented and have been expanding with this type of low overhead business model for over twelve years in Northern California, and our 350 franchises consisting of 1,700 agents have been reaping the benefits for over a decade. It is interesting to me that the current traditional ‘Big Office’ brokerages now think this is something new and creative. We obviously support and welcome the change.
http://www.realtyworldnca.com
Scott Gill
Sr. Vice President
Realty World Northern CA, Inc.
Submitted by Bruce Wagg on March 19, 2009 - 10:22am.
I agree that in my market, a clean, tech savvy and comfortable environment would be a factor in swaying a client to choose one company over another for his business. Yes you can always sign paperwork on the back of a car trunk and meet clients at a coffee shop, but when you are talking about impressing clients who are spending upwards of $750,000 or more on a house, I fully support a classier surrounding.
Cordially,
Bruce Wagg
Oakland Real Estate | Berkeley Real Estate
Submitted by Larry Whited Sr. on March 19, 2009 - 11:36am.
My family and I are flying to Hawaii tomorrow morning. When we bought our airline tickets online we did not ask if the airline served meals on real china with an espresso.
All we wanted to know was price, convenience of flight times / stops and could we feel reasonably confident that they would safely deliver us, our children and our bags to the correct location. We are happy to buy a $4 espresso along the way from the large savings on the airline tickets.
I think that is what the consumer will demand of us in the future. I don’t think they will continue to subsidize expensive upscale offices large or small.
I don’t know of any client who thinks it would be fun to hang out a real estate office and have an espresso. The only people I saw hanging around a real estate office when I worked in one were the non-productive agents.
The producers were out in their client’s homes to take care of business.
Larry A. Whited, Sr., CRB, CRS, GRI
President & Founder
www.maxUnet.com & www.WebMLS.net
A Virtual Real Estate Franchise System
** Virtual Is the Future **
P.O. Box 757
West Chester Ohio 45071
Direct - (513) 543-2727 Fax - (513) 297-7497
Submitted by Jay Thompson on March 19, 2009 - 12:16pm.
"...but when you are talking about impressing clients who are spending upwards of $750,000 or more on a house, I fully support a classier surrounding."
I prefer to impress clients with my expertise, ability to get the job done, and getting the most money if they're selling and saving the most if they are buying.
If they are impressed with a coffee machine, a flat screen TV, or fine Corinthian leather sofas, then I'll pass. There are PLENTY more potential clients out there.
Jay Thompson
Broker / Owner
Thompson's Realty
Blog: www.PhoenixRealEstateGuy.com
.
Submitted by Jonathan Phan on March 19, 2009 - 1:34pm.
cool
Jonathan Phan
http://www.jonathansellshomes.com/
Submitted by Scott Gill on March 19, 2009 - 3:37pm.
Impress a client!? Be professional, show value, do a great job and if you need a little inducement, spend a $150.00 and take the client to a nice lunch at the Fairmont. It’s more enjoyable, more relaxing and considerably less expensive than signing a lease on commercial office space. We find that this works out famously here in the Silicon Valley where clients spending $1 to $2 million for a home are common place.
http://www.realtyworldnca.com
Scott Gill
Sr. Vice President
Realty World Northern CA, Inc.
Submitted by Brian Wilson on March 22, 2009 - 11:25am.
"CB Office offers coffee and wi-fi" - how is this news? What real estate office doesn't offer coffee and an internet connection?
I love proclamations, like "if you don't have one of these, you'll be out of business in a year." A blackberry is not a business essential item. There are many, many markets across the country dominated by agents who don't blog or twitter about what they had for breakfast or syndicate their listings to dozens of sites that don't sell their homes.
There is an opportunity for some agents to adopt some of these technologies and really scoop up some market share but real estate is a relationships business.
http://zolve.com
http://thewoodlandsrealestatevoice.com
Submitted by Susie Blackmon on March 27, 2009 - 4:02am.
I think Mr. Gill of Realty World Northern CA, Inc. is spot on!
Susie Blackmon
http://www.BuckingtheRealEstateTrend.com