The pact calls for Grubb's 55 local brokers to share equally in the office operation along with BRE Commercial, among the largest internally owned brokerage firms in San Diego. Grubb holds the option to take a one-third share with capital backing, says a corporate contact. It's not been funded yet, but "that's our intent," he confides to GlobeSt.com.

The newly formed Grubb & Ellis/BRE Commercial office is giving Phoenix brokers a key role in the decision making, operation and profits of the local commercial real estate firm while maintaining its national and international platform. "It's a pretty significant move in that the brokers in the Phoenix office took control of their own destiny," John Frager, president and principal of BRE Commercial, tells GlobeSt.com. "They will control the expenses, the commission split and the profits. They will truly be running the operation."

The Grubb contact describes what is taking place in Phoenix as "a test case. It's the first time we've had an ownership position in one of our affiliates." At last count, there were slightly more affiliate offices than corporate owned in the Grubb hierarchy. Phoenix is "a dominant office," says the Grubb source, about the strategy change.

The shift in operations comes just two months after reports surfaced of a possible broker uprising and just four weeks after president and CEO Barry Barovick, CFO Ian Bress and Elizabeth Kulik, chief of strategy and planning, left the company.

Phoenix brokers deny the change is a result of a broker revolt. "News of a broker revolt is untrue," Grubb & Ellis managing principal Don Morrow tells GlobeSt.com.

Morrow and senior vice president Stan Shafer, who steered the nine-member broker negotiating team, tell GlobeSt.com that the idea of putting more control into the hands of Phoenix brokers has been kicking around for some time. "We had been in discussions with Grubb long before these changes came about," Shafer says of the deal. "It's something we've been thinking about for a long time. There were no winners or losers in this thing. It worked out well for both sides."

Morrow said the business model will not only allow local dealmakers to have an ownership stake in the company but will also attract and retain new brokers while widening Grubb & Ellis' influence in the Phoenix market. So far, it looks like it's working. Since the idea first surfaced about 10 months ago, not one broker has left Grubb & Ellis, an oddity in any brokerage firm, Shafer says.

The arrangement also could mean an expansion for the company. Shafer said the Phoenix office expects to announce a number of new hires within the next month.