Howard Hanna betting on ‘certainty’ amid wave of consolidation
As the brokerage landscape continues to shift, Howard Hanna NYC leader Michael Rossi says the firm is asserting its brand power with an eye toward growth.
Key points:
- Howard Hanna moved into New York City last fall with the acquisition of Elegran — and has grown recently with the addition of two dozen agents.
- Michael Rossi, the Elegran founder who is now EVP of Howard Hanna NYC, says he has his sights set on building high-powered teams and moving to the top of the market.
- In a period of industry upheaval, Rossi said an alignment with Howard Hanna is an alignment with “certainty.”
Michael Rossi ran Manhattan-based Elegran Real Estate for 17 years before deciding to enter into an acquisition deal last fall with one of the country's biggest independent real estate brokerages: Howard Hanna.
During a recent interview with Real Estate News, the Elegran founder said aligning with the family firm was a "very intentional" move. Now serving as executive vice president of Howard Hanna NYC, which recently onboarded more than two dozen agents from some of New York's biggest real estate brokerages, Rossi has largely been tasked with establishing the Howard Hanna brand in the city that never sleeps.
At a time when much of the city's market share is held by publicly traded brokerages, Rossi believes that Howard Hanna has a unique opportunity to demonstrate what sets it apart. As for what comes next? Building new teams and providing New York City agents and their clients with an attractive alternative to the bigger brands are just two of Rossi's points of focus.
A mantra that aligns
The merger process was relatively seamless because Elegran and Howard Hanna are like-minded brokerages, according to Rossi, who said the challenges that have come up have largely revolved around integrating systems and developing brand recognition.
"It actually feels like a great opportunity to tell a story and fill a gap in the market," he said. "The Howard Hanna brand represents independence; it represents family values. The mantra 'Built Different' is true."
Building strong teams with top-down support
As Howard Hanna grows in New York City, part of the brokerage's focus will be helping top agents create their own teams.
"We have some really strong individual agents who really want to start building teams and grow their books of business," Rossi said. "We're so rooted in that entrepreneurial component that we really teach agents to develop and build their own business — not just transact."
While some brokerages have trimmed staff and resources amid the slow housing market, Howard Hanna has instead expanded its New York City leadership and support teams. Recent additions — like Hal Gavzie, who led Douglas Elliman's residential leasing program for 10 years before joining Howard Hanna NYC in March as executive director of business development — have bolstered a leadership group focused on helping agents, Rossi said.
Committed to independence, excellence
A large share of the city is now controlled by publicly traded firms, Rossi noted, with Compass International Holdings and its brands alone taking up a large share of the pie. But he believes Howard Hanna offers something different.
"One of the things I love about Howard Hanna is, they're not looking at quarterly earnings or annual earnings," Rossi said, adding that the brokerage isn't contending with the "competing commitments" of answering to shareholders and serving agents' interests. "The growth is really about the word getting out that there is a different option in the marketplace, and people are excited about that option."
Howard Hanna's ultimate goal, according to Rossi? To become No. 1 in New York City and every other market the company operates in, and to grow sustainably while adding agents who want to preserve the company's culture.
Picking 'certainty' amid housing market unknowns
As other New York City independents have merged or been acquired by larger firms, Rossi said he's seen some agents grow disheartened.
"I think that really scares the agent who started at Sotheby's and loves the Sotheby's brand," Rossi said. "I think it really scares the agent who loved Warburg, was sold on the fact that Coldwell Banker was going to add value, and now they're having to change the brand again." However, he noted, all of that consolidation creates "tremendous" opportunity for Howard Hanna because agents have the option of choosing a brand with nearly 70 years of stability.
On a larger scale, the Covid-19 pandemic kicked off an extended period of uncertainty, which has continued to evolve amid international conflicts, interest rate instability and fluctuating local policy.
It's times like these, Rossi said, when brokers and agents want to pick the safest partner. "I went for certainty," he said. "And Hanna represents certainty."