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I recently spoke at Inman On Tour Nashville, where one idea stood out: There’s still room to grow. Even in a market where many are tightening the reins, growth is not only possible — it’s necessary for brokerages with the right infrastructure, strategy and leadership.
But here’s the truth: Opening a new office isn’t just a play for more square footage or market share. It’s a test of your systems, your people and your purpose.
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In Nashville, I met David Hoffman, CEO of David Hoffman Realty, an award-winning Charlotte, North Carolina, indie. I followed up with him after the event and direct messaged him on Instagram when he shared info about the opening of his new office.
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For more on opening a new office, check out my previous article: “Find your space and plant a flag in the market you serve.”
Subsequently, I reached out and asked what insights Hoffman had gleaned from his recent office expansion, including how he chose the location. His first office is south of Uptown Charlotte, which means that potential clients and agents on the north side don’t always reach out. The new office is the “same distance north of Uptown Charlotte as our current office is south,” he said.
“We already had a few experienced agents who were making the long drive down south, and wasting a lot of time and money, as well as agents who have wanted to be a part of our firm, but couldn’t afford the time to commute each way, as well as the long distance for attending meetings and attracting clients.”
Hoffman’s search put them in the center of the Lake Norman area. “It was a combination of location, location, location, as well as comfort and efficiency,” Hoffman said. “The town of Cornelius is in the epicenter of the Lake Norman region, so buyers and sellers look at agents in that area as capable of serving the entire region.”
7 questions to ask yourself before you grow
If you’re thinking about expanding into a new market or into another area of your existing market, Hoffman suggests you ask yourself these seven questions first:
1. What is your 3-year plan?
“We believe in ‘three minutes and three years,’” Hoffman said, “meaning that we are present in real time, but also making decisions that will help us get to where we want to be in three years,” which, in this case, included being in the Lake Norman area of his market.
“Fast-forward three years to know your personal and professional targets and goals,” Hoffman said. This will help you grow into a space that can support you and your team for the foreseeable future.
2. Is your hub built to handle more?
If your core operation is barely managing its current volume, adding more will only multiply the cracks. Before expanding, Hoffman said, take a hard look at your systems, including transaction flow, client service, compliance process, training and onboarding, and tech stack. Can they withstand a decentralized leadership structure?
Can your team take on more clients, staff and agents without sacrificing service or speed? If not, fix the foundation before adding more floors.
3. Do you have the leadership bandwidth?
Expansion isn’t just a logistical move — it’s an entire focus shift for your leadership, Hoffman said. You can’t be in two (or 10) places at once, so is your leadership team structured to support multiple locations? Is your time stretched too thin already?
If your current operation still requires your constant, personal oversight, it’s not time to scale. You need operational maturity before you can duplicate.
4. Are you financially ready?
This is where the rubber meets the road: Opening a new office means upfront capital for space, buildout, tech, talent and marketing, and enough cash flow to keep it running until it’s self-sustaining.
If your reserves can’t support six to 12 months of operating costs for a new location, hold off. Growth should be a strategic investment, not a financial risk that ends up sinking the ship altogether.
5. Do you understand the legal landscape?
State and municipal laws can shift dramatically between ZIP codes. If you’re expanding, you need a working knowledge of local compliance requirements, like adding managing brokers, updating MLS member roles, adjusting marketing disclaimers and adhering to jurisdiction-specific advertising rules, Hoffman said.
Overlooking these items can cost you more than just money — it can damage your credibility and result in reputational risk.
6. Is your team aligned with the vision?
Your people are your brand. If your current agents and staff don’t buy into your vision for growth, the cracks will show in the form of recruiting and retention struggles. Expansion works best when your team feels like they’re part of something they’re building, not something being built around them, or worse, in spite of them.
“Ensure that your current agents and staff are fully behind the vision of growth, and not only support it, but that they are a part of the integration,” Hoffman said. Communicate not just the “where” but also the “why” early on. Bring your people into the process, and provide opportunities that let them lead, too.
7. Is your brand and messaging consistent and scalable?
A disjointed brand confuses everyone. From the new office signage to your digital footprint to how your agents talk about the company, your message needs to be sharp and consistent, both internally and externally.
Internal communication matters just as much, Hoffman said. If your agents don’t understand how the expansion fits into the bigger picture and sell that vision in conversations with current clients and colleagues, neither will the market.
Scale is a multiplier of both strengths and weaknesses
Growth doesn’t fix what’s broken in your business. It amplifies it. But if you’re already strong at the core — operationally, financially, culturally — then expansion becomes more than a possibility. It becomes a smart, strategic step forward for your real estate brokerage.
Done right, adding a new location isn’t just about growing your footprint. It’s about deepening your value, extending your reach and creating a brokerage that’s built to last.
Troy Palmquist is the founder and principal at HomeCode Advisors. Connect with him on LinkedIn.
