BHS, FirstTeam pave new path to partnership — skipping M&A
The New York- and California-based firms said they view this strategic marketing partnership as an alternative to sweeping industry consolidation.
Rather than jump on the consolidation bandwagon that seems to be overtaking the real estate industry, two independent brokerages have chosen another path forward.
An alternative to M&A: New York-based Brown Harris Stevens and California-headquartered FirstTeam Real Estate have joined forces in what the companies are calling a "strategic multi-year marketing partnership."
In a May 5 announcement, the brokerages said that the alliance will open opportunities for cross-marketing, advertising, public relationships, networking and shared insights that can benefit real estate agents and their clients. Each company will remain completely independent and retain its own leadership, branding, culture and operations, an FAQ page explained.
Both firms are members of Leading Real Estate Companies of the World. Combined, they represent more than 5,000 agents across over 70 offices in seven states: New York, New Jersey, Florida, Connecticut, California, Arizona and Washington.
"This partnership represents two respected independent brokerages choosing collaboration over competition, coming together to expand opportunities, elevate how we market listings, and ultimately deliver greater value to both our agents and clients," FirstTeam VP of Marketing & Strategic Initiatives Lauren Henss said in a news release.
FirstTeam's CEO, Michele Harrington, added in the release that brokerages serious about long-term growth "should be finding ways to align, not compete."
Business as usual: From a practical standpoint, nothing will change with agents' operations at either firm, BHS CEO Bess Freedman told Real Estate News in an email. What they will gain is the opportunity to cross-promote listings, share market insights and build new referral opportunities.
Each brokerage's marketing teams will likewise remain independent but will work closely on specific initiatives like advertising collateral, networking events and shared market reports, Freedman said.
Meanwhile, BHS and FirstTeam are exploring the possibility of allowing agents to become dually licensed at both firms based on requests they've received from agents thus far, Freedman added.
Stronger together: Although BHS and FirstTeam have similarities — both are led by a female CEO, are independent and are luxury-focused — a partnership between firms operating at opposite ends of the country might seem like a head-scratcher.
But agents at both firms receive a lot of client traffic regarding relocations and second-home purchases, according to Freedman. When the companies' marketing leaders struck up a conversation at an industry event, their firms appeared to be very much aligned.
"We are stronger together — maximizing exposure and just providing more opportunities for our agents without cutting costs, taking on debt and sacrificing culture," Freedman said.
An open-ended relationship: The partnership does not as of yet have a specified end date. It will continue "as long as we all feel like it's adding value for our agents, buyers and sellers," Freedman told Real Estate News.