The future belongs to the one-stop shop

Have you ever asked yourself why the term ‘estate agent’ seems to have disappeared from the real estate industry? What company still positions itself today as a classical estate agent and how seldom does one even still read about real estate brokers? Yet, in contrast to many other terms, the term ‘estate agent’ has not merely gone out of fashion. Hardly any other sector has experienced such a radical transformation over the last few decades. Real estate consultants or real estate service providers: these are the magic words that players, both minor and major, react to today.

All have one thing in common: whilst brokerage and sales are components of the business model – sometimes even to an enormous scale – the range offered is at the same time still continually upgraded with various business lines. Through asset services and appraisal packages, and all the way to investment solutions, a modern real estate consulting firm offers a vast range of services.

In 2014, CBRE took over VALTEQ and PREUSS with the objective of expanding the range of technical advisory services it offers. The idea behind it is simple: It is the Amazon Principle. In this way, it is possible to provide the customer with comprehensive advice and, at the same time, to offer all services from a single source. The one-stop shop creates synergies that smaller players, never mind the “estate agent of yore”, simply cannot match. Particularly the increasing numbers of internationally-positioned firms flooding into the German market, as well as overseas investors, appreciate the value of having one central contact for all matters related to their real estate. Acquisition, due diligence and energy-efficiency certification from a single source – this spares considerable friction losses in the form of coordination processes, and creates economic advantages. At the same time, though, the model also remains attractive for those who only require individual services. Thanks to widespread branch office networks, many real estate service providers have a great deal of local expertise at their disposal.

The benefits of the one-stop shop are many and, at most, restricted by regulatory limits, e.g. in the provision of appraisal services, or by internal compliance demands. However, when set side by side with the available potential, these restrictions are in reality rather more marginal. Hence the conclusion: The future belongs to the one-stop shop. For this reason, CBRE, together with its two subsidiaries, PREUSS and VALTEQ, considers itself well positioned for the future.

Mark Spangenberg, Chief Operating Officer (COO) at CBRE and Managing Director of both subsidiary firms, PREUSS and VALTEQ