Related, Corcoran deal signals shift away from in-house sales | Katonah NY Homes
The Related Companies’ unusual decision to collaborate with outside marketing pros at Corcoran Sunshine to sell the residential units at its mammoth Hudson Yards project will be a boon for the new development marketing sector, industry experts told The Real Deal, since it signals a reversal of a recent trend towards marketing big-ticket projects internally.
Related announced the partnership earlier this week, surprising some in the real estate community, since the giant developer has historically handled sales in-house. Going forward, Corcoran Sunshine, the new development marketing wing of the Corcoran Group, will handle about $5 billion worth of projects in Related’s New York City pipeline, including the Zaha Hadid-designed 520 West 28th Street condominiums.
Though brokerage executives could be forgiven for quaking at a competitor landing such a plum assignment, industry pros insisted that the news was positive for the sector overall.
“It shows that this short wave of developers who thought that going in-house was more cost-effective and more productive than working with the brokerage community is potentially turning back to the brokerage community,” said Stephen Kliegerman, president of Halstead Development Marketing. “I think it’s a great thing.”
Indeed, the developers of the city’s two most noted residential towers in recent years— 432 Park Avenue and One57 — both opted to use their own in-house brokerage teams to market their projects. (Extell Development, the company behind One57, collaborated with Corcoran Sunshine behind the scenes.) Some high-profile brokers criticized the shift toward in-house marketing as eroding transparency in the marketplace, as The Real Deal reported.
http://therealdeal.com/blog/2013/11/20/related-corcoran-deal-signals-shift-away-from-in-house-sales/
Related announced the partnership earlier this week, surprising some in the real estate community, since the giant developer has historically handled sales in-house. Going forward, Corcoran Sunshine, the new development marketing wing of the Corcoran Group, will handle about $5 billion worth of projects in Related’s New York City pipeline, including the Zaha Hadid-designed 520 West 28th Street condominiums.
Though brokerage executives could be forgiven for quaking at a competitor landing such a plum assignment, industry pros insisted that the news was positive for the sector overall.
“It shows that this short wave of developers who thought that going in-house was more cost-effective and more productive than working with the brokerage community is potentially turning back to the brokerage community,” said Stephen Kliegerman, president of Halstead Development Marketing. “I think it’s a great thing.”
Indeed, the developers of the city’s two most noted residential towers in recent years— 432 Park Avenue and One57 — both opted to use their own in-house brokerage teams to market their projects. (Extell Development, the company behind One57, collaborated with Corcoran Sunshine behind the scenes.) Some high-profile brokers criticized the shift toward in-house marketing as eroding transparency in the marketplace, as The Real Deal reported.
http://therealdeal.com/blog/2013/11/20/related-corcoran-deal-signals-shift-away-from-in-house-sales/
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