What are profitable brokerage companies doing right?
The firms achieving the best results share some common traits — starting with strong leadership. See what else comprises the blueprint for brokerage success.
Thinking big about residential real estate success requires a big-picture perspective. Industry Decoded features industry experts who can enrich your understanding of issues affecting the industry as a whole.
The views expressed in this column are solely those of the author.
As brokerages completed their year-end financial reviews and forecasts for 2026, many leaders found themselves confronting a difficult reality: Profitability wasn't where they expected it to be, and in some cases, it was missing altogether.
Through our work with brokerage clients, we are seeing clear trends emerge among firms that are achieving strong results. These insights point to a set of practices that consistently show up in the most profitable companies.
1. Strong, intentional leadership
Profitable brokerages have leadership that is engaged, strategic and present. These leaders create alignment, model accountability and intentionally build a strong culture through meaningful sales meetings, company events and social gatherings that keep agents connected and motivated. This combination fosters a performance-minded environment that supports consistent results.
2. Quality over quantity in recruiting
Instead of chasing headcount, high-performing companies recruit agents who fit their culture, are productive and demonstrate the desire and capacity to grow. By prioritizing quality over quantity, these firms build a stronger, more stable roster that is capable of delivering consistent results.
3. Training and coaching that elevate skills
A defining trend among successful brokerages is their commitment to structured training and consistent coaching. These programs go beyond basic onboarding and provide agents with clear systems, skill development and ongoing accountability. Through regular coaching sessions, skills training and business planning support, these firms give agents the tools they need to increase per-person productivity and sustain long-term growth.
4. Full-service transaction and marketing support
Top companies invest in strong operational and marketing support that enables agents to focus on what they do best: generating and closing business. This full-service model enhances efficiency and creates a greater stickiness for agent retention. We have seen brokerages make services a profit center.
5. Smaller, collaborative office environments
In today's landscape, operational efficiency is essential. Many large brokerages are reducing their office footprints, remodeling existing spaces and creating collaborative environments where agents genuinely want to spend time. These smaller, modern offices are often located in high-traffic areas. They balance cost savings with a vibrant, community-oriented atmosphere that supports productivity and connection. In some cases, they are even integrated with coffee shops, wine bars or event spaces to further enhance the agent and client experience.
The results we're seeing
Brokerages that embrace these strategies, including purposeful leadership, selective recruiting, skill-focused development, comprehensive support and efficient space planning, are consistently seeing a healthy 5-7% return on revenue. This blueprint offers a clear path forward for leaders ready to strengthen their financial performance in the year ahead.
Lisa Piccardo is the SVP of brokerage and team consulting at T3 Sixty. She works with firms of all sizes to support their growth, operations, recruitment and marketing strategies, pulling from her wealth of experience as a former independent brokerage owner and global VP of lead affiliate services for Sotheby's International Realty. (Note: Real Estate News is an editorially independent division of T3 Sixty.)