This article is from the Australian Property Journal archive
FOUR commercial real estate businesses in Sydney have combined to form a new agency with assets under management worth $1.5 billion.
Called X Commercial, the group combines LJ Hooker Commercial offices in South Sydney and the Inner West, David Brown’s DB Property in Surry Hills and the newly acquired PCC agency in Chatswood.
It will have 1,500 commercial, industrial and retail properties under management and a dedicated commercial finance division, which has already facilitated more than $100 million in loans in its first nine months.
X Commercial’s chief executive officer is Daniel O’Brien, who has worked in senior positions at CBRE, Knight Frank and for the last five years with LJ Hooker Commercial. Alex Bennett will be chief operating officer, while David Brown joins after owning one of the largest agencies in the city fringe over the past 25 years.
O’Brien said, “There is no doubt the power of the large global firms in the local Sydney market is not what it was 10 years ago.”
“We believe this decline is due to a combination of the growth in social media, which has levelled the agency playing field, coupled with too much bureaucracy and very high levels of staff turnover born from leaders with no equity.”
“Meanwhile the franchise model is also failing as there are ever-growing fees for franchisees and few sales leads provided by head office, lower value for money for clients, as well as a lack of leadership and teamwork among offices.
“Strict geographical rules and barriers create a model where agents accumulate higher costs when they succeed”, he added.
X Commercial has 21 commercial sales and leasing agents in four major metropolitan locations from the north to south of the city, and more agents and businesses are expected to join the group over the next few months. It is planning to expand its footprint further, with the acquisition of more offices to reach a target of 15 over the next five years, and moves into the eastern and western parts of Sydney.
“We are on the acquisition trail for agents working in global firms and franchise owners who desire an equity stake in their own firm,” O’Brien said.
The group’s pooled resources include a database of about 90,000 commercial owners, investors, tenants and developers.
