In new York, large brokerage companies acquire smaller firms
Mergers and acquisitions are the most significant trend in the new York real estate market, writes Forbes. Amid the panic, big players are buying up small companies.
In new York, well-known real estate firms are expanding their expansion, according to Forbes. Large companies have more resources for marketing and advertising, extensive offices, and valuable connections with landlords and developers.
Small companies are forced to merge with them to reduce costs. Sharing resources allows them to significantly reduce spending. The company’s share of the marketing team, office space and other expenses that would normally cause a small company to operate with minimal profit.
There are too many licensed real estate agents on the American market. There are 1.4 million licenses issued across the country, but only 5.5 million transactions are made per year. A huge number of real estate agents are not needed to meet the current demand, especially when 100 thousand brokers account for almost half of the transactions, writes Forbes.
The number of agents and brokerage companies in the US is beginning to decline, and this trend will continue, experts say. After all, brokers in large companies often work without a salary and earn only on commissions.