Top commercial real estate brokers Doug Harmon and Adam Spies are working on a new contract with Cushman & Wakefield – negotiations that could impact the way billions of dollars in real estate are traded.
Harmon and Spies’ current contract with Cushman expires in October, five years after the brokers left their longtime home, Eastdil Secured, in the fall of 2016.
When the duo joined Cushman, they received a hefty signing bonus that was paid over the five-year term of their contract. Sources close to the existing deal said the most important points to negotiate centered on the split of the main negotiators with the house, among other financial terms.
The outcome of the negotiations could have a significant impact on compensating not only the biggest trophy negotiators, but also lower brokers, who may point to the deal as a benchmark.
Harmon wrote in a statement that after nearly five years, he and his team “feel an integral part” of Cushman “and have reiterated their commitment to the company.
“The global platform, the people, the culture and the strength of the brand are all appreciated and appreciated by us,” he wrote. “We are in the process of building a unique and best-in-class capital markets company, integrating our market research, leasing expertise, tenant relationships and all that CW has to offer our clients to leverage capitalized on the opportunities of this recovery. ”
The surprise exit of Harmon and Spies five years ago from their long-time home in Eastdil turned the investment sales landscape upside down and highlighted the princely bonuses brokers are willing to shell out to recruit a team of prominent sale.
If the duo want to test the market this time around, they will have fewer options to exploit. Their separation from Eastdil has become acrimonious, so a reunion does not seem likely. Cushman’s biggest competitor, CBRE, already has a top-tier team led by Darcy Stacom and Bill Shanahan.
Possible destinations include Newmark or JLL. The latter spent $ 1.8 billion two years ago to strengthen its presence in the financial markets by acquiring the brokerage firm specializing in the sale and placement of debt HFF. And while the deal has helped increase JLL’s market share in the investment sales market, it still lags behind in an area dominated year after year by competition between the Harmon and Spies team and Stacom and Shanahan from CBRE.
After creating their platform at Cushman, Harmon and Spies transformed the brokerage house into the premier investment and sales firm in New York for several years. During the pandemic, they shifted some of their attention away from New York City, making deals in other cities and selling some wallets nationwide. It is said that brokers are now focused on creating a national practice.
Last year, CBRE outperformed Cushman in New York trophy sales above $ 100 million, racking up $ 3.13 billion in deals compared to Cushman’s $ 2.51 billion.