John McCloud is editor of Industry Property Journal, from which this article is excerpted.

Irvine, CA—As part of an initiative to expand in the US and internationally, Sperry Van Ness added several local and regional firms to its stable. JBM Realty Advisors Inc. of Tampa, FL, a company that specializes in global marketing of institutional-quality commercial assets and portfolios, is the latest addition for SVN, the nation's 16th largest commercial real estate brokerage.

SVN president Jerry Anderson says the expansion, which began five years ago, coincides with the 20-year-old firm's decision to bolster its presence in the industrial and office sectors. "Historically, we've been mostly in retail and multi-family," he explains. "But more recently, office and industrial have come to represent about 30% of our transactions. We expect that percentage to increase."

According to Anderson, the firm structured its expansion through a program that grants licenses to existing companies to operate under the SVN banner. JBM, for example, now operates as JBMRA-Sperry Van Ness Institutional. Anderson says the arrangement, which the Federal Trade Commission formally regards as a franchise business, provides more than the network organization provided by companies like Corfac or NAI. "SVN presents a very unified front compared to a network," he asserts. "We have much stronger policies and procedures to make sure all our offices deliver consistent service."

Before the JBM acquisition, SVN enhanced its US market penetration with offices in Chicago, New York City, Denver and Seattle. It also began an international expansion, adding licensees in Costa Rica and Panama. Anderson says the firm will be meeting soon with prospective SVN licensees in the Middle East.

"This growth allows Sperry Van Ness to support real estate advisors globally while closely connecting foreign and US real estate investors with opportunities worldwide," says company co-founder and CEO Mark Van Ness. "Our diversified roster of trusted advisors, with deeply rooted relationships around the world, has been instrumental in paving the way for our national and international expansion efforts."

Anderson says the firm does not base its licensing choices on a potential partner's strengths in one property type or another but rather on the quality of its brokers and agents. "We always look at their roster of agents. The strength of any company is based on the agents," he says.

He says the firm that recently joined SVN in Chicago is located in the Loop and focuses on office product, with very little industrial. A firm it added north of Seattle, on the other hand, primarily handles industrial product. "If they're not strong in one product type or another, we can help them build their teams. What matters is the level of commitment they've shown to their business," he says.

Anderson reports SVN is adding about 30 to 40 firms per year to its practice, but says the company has managed to maintain strict qualifications for entry. "We are very selective," he declares. "We had one owner tell us it was harder to get into SVN than to get into military intelligence. We're that stringent."

According to Anderson, the firm, which has about 150 offices, seeks to break into the ranks of the top 10 brokerages within two to three years. It is looking to enter Dallas, Houston and Miami and increase its presence in Central New Jersey and Mid-Atlantic markets like Washington, DC. It is also seeking additional international opportunities. Anderson emphasizes that established foreign relationships would play a large role in its decisions about which firms to license under the SVN banner.

Instant Insights /

SVN Targets Industrial, Office

Related Stories

Recommended For You