The move by Newmark prompted Oncor president and CEO David A. Ball to issue the following statement:

"Oncor hasn't encouraged Newmark's expansion and isn't looking for Newmark to improve our position outside of New York and Washington, DC.

"Newmark is doing what it perceives it must do to compete more effectively on a local basis against national competitors with owned operations in major markets," the statement continued. "Expansion thus serves Newmark's local purposes, but Oncor must continue to focus on top companies with strong performance histories and proven track records as its representatives.

"The objectives of Newmark and Oncor are not necessarily counterproductive," Ball stated. "That remains to be evaluated by both entities. However, Oncor stands firmly behind its position that its existing service providers in the conflicted markets are superior to any branch office Newmark might open and are more consistent with Oncor's policy of being represented by strong locally-based firms. Hence, the Oncor flag will continue to be flown by the existing Oncor company, not the Newmark branch."

An Oncor spokesperson added that Newmark will not take over the Oncor franchise in any other market it expands into if "there is an affiliate already in place." The source stated that Ball's comments were only a "clarification" of a policy that was always in place.

In a follow-up interview, Ball explained to GlobeSt.com that, "our strategy is to create a business flow between the partners and Oncor. When a member expands into an existing market where there is already an affiliate, that business flow, in this case, will be Newmark to Newmark. So from an organizational perspective, it is not ideal."

Nevertheless, Ball remains philosophical. "A business model has to be flexible to meet with changing times," he stated. "We are not expecting a parting of the ways with Newmark."

Newmark represents Oncor in New York City; Washington, DC; and, on a shared basis, in New Jersey. While calls to Newmark vice chairman and CEO Barry A. Gosin were not returned by press time, Seena Stein of the New Jersey office also claimed that everything between the two entities is just fine. She indicated that Newmark will be the host company when Oncor has its annual convention here in October. Carter & Associates' Oncor manager, Carl Peak, was unavailable for comment.

Instant Insights /

Despite Atlanta Woes, Newmark, Oncor Still Profess Long-Term Alliance

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