Republished with permission from connectcre.com.
In the fiercely competitive world of commercial real estate (CRE), smaller firms often face various challenges in scaling their operations. Having a dynamic network of trusted and respected peers to collaborate with can be a transformative solution to levelling this field.
The Independent Brokerage Group (IBG), a large network and subgroup within the Society of Industrial and Office Realtors (SIOR), offers immense value to brokers at independent firms within SIOR. The IBG network often is cited for facilitating growth, enhancing business operations, and fostering invaluable connections, among other key benefits.
A Network of Connections
At its core, IBG is about building and leveraging a network of connections that is designed to support independent CRE firms. Unlike large companies, independent brokers often lack some of the larger resources and technical support systems available to their bigger counterparts. IBG helps bridge this gap by providing a robust collection of connections, tools, and expertise, enabling independent firms to compete on both a national and international scale.
Ryan Hartsell, SIOR, a partner at Oxford Partners and a key member of IBG, frames the value proposition for his firm like this: “IPG is an international network, and a brain trust of many really smart, intelligent, and successful independent agents from around the country. It’s enabled us to expand into international brokerage, representing companies on a global scale. Beyond the acceleration of my brokerage business, it has also been the underpinning of great relationships that have been forged.”
For Street Jones, SIOR, a principal at RCR and a prominent member of IBG, the network allows his firm to engage the right experts in the right markets, nationally and internationally. “IBG gives us the ability to transact at a very high level,” says Jones. “We can pick the best person for the job, someone who’s the expert in that field.” That helps expand the team of resources that are available to collaborate on larger assignments or to tap for specific market or property sector expertise.
The flexibility to choose the right person for the job is another significant advantage of being part of IBG. Unlike some large brokerage firms that are often contractually bound to maintain certain relationships, IBG members can utilize the most talented people in any particular market. This freedom helps ensure that clients receive the best possible service, tailored to their specific needs, and better aligns with their best interests.
Expanding Business Opportunities
IBG’s impact can be seen in three main areas: transactional support, operational guidance, and high-level collaboration.
Transactional Support
IBG facilitates transactions by providing leads, deals, systems, technology, and market knowledge. This referral network delivers both inbound as well as outbound assignments, whether that be tenant expansions, investor acquisitions, or other business growth needs. This support is crucial for independent brokers who often juggle multiple roles. The network helps locate the right person for assignments, ensuring that clients receive top-tier service. As Jones points out, “We transact in 15 to 25 states a year, and the vast majority of those transactions are with independent brokers.”
Operational Guidance
Running a small business involves much more than closing deals. Independent brokers must manage infrastructure, processes, and systems. IBG members share insights on these operational aspects, offering advice on engaging third-party vendors, marketing, hiring, and staffing. This guidance helps firms stay competitive and efficient.
In the case of Sarah LanCarte, SIOR, a principal at Lancarte Commercial Real Estate who currently serves as Chair of IBG, the network has been invaluable in running her business.
“Coming from a big shop to starting my own company, there were so many aspects I had never experienced. IBG members shared resources, ideas, and knowledge, which was invaluable for my business,” she explains. LanCarte also notes that IBG has grown considerably since 2019, which has in turn strengthened both the quality and breadth of the network’s members.
Collaboration
The importance of each of those elements can easily be traced back to the very roots of when Dan Smolensky, SIOR, started his firm, TMG Real Estate Advisors, 15 years ago. He made the decision to make SIOR and the IBG group a foundational component of his tenant representative business in the subsequent years. Collaboration and networking are among the key reasons Smolensky joined the organization to begin with, and that decision to jump in and get involved has led to growth of the Chicago-based firm, which now has grown to 11 brokers.
“I had previously been at a big shop and that served as my network. But when I started out on my own, I realized that while I had built some great contacts, I needed to develop a much wider network in order to collaborate with others across the overall Chicago market, as well as the U.S. and beyond. The connections I’ve made in the IBG network have facilitated the growth and success I’ve achieved,” says Smolensky, whether that be leads and referrals or internal sharing of business documents needed for exclusive listing agreements.
That collaborative process is a vital part of the everyday experience for those in SIOR’s IBG network, too. Smolensky says, “I’ve replicated that same process of great teamwork with many other SIOR members all over the country. It’s never been anything but a great experience. A big part of that is the power of the network because the quality of the people in the network is second to none.”
IBG members also have access to a wealth of tools and resources. From technology solutions to marketing strategies, the network provides practical support that enhances business operations. Hartsell says, “I’ve learned how to improve my sales processes, new business pitching, and overall operational best practices. Lately, that encompasses learning how to adopt useful AI into our brokerage via applications that we can actually use that are actionable and make our lives easier. I’ve gained a deeper understanding of methods to develop and build my brokerage operation, whether that be how to better recruit experienced agents, or how to grow my own better.”
Equally if not more important, the collaborative nature of IBG fosters strong relationships and referrals that directly impact members’ businesses. Not only do members help each other out, but they also collaborate with each other on a very deep level, sharing presentations, pitches, and even financial statements. For an industry as competitive as brokerage, such high-level cooperation is rare and illustrates the value IBG members deliver to each other.
LanCarte recalls, “I reached out to an IBG member for advice on property management, and he shared a financial report covering three years so I could better understand how to approach the assignment as I added a new service line. That’s unheard of, but it’s invaluable.”
These strong relationships foster a true sense of community within the network. Echoing LanCarte’s comment, Jones views SIOR as “one big family, and the IBG group is a family within the family.” This close-knit environment encourages members to go above and beyond for each other, creating an extremely supportive and dynamic network.
Smolensky has learned over the years that when a SIOR member contacts him, it becomes a top priority because it is a valued relationship based on trust and likely leads to a closed deal. “Those calls just get moved to your highest priority and it really doesn’t matter the size of the deal. If you’re going to take on an assignment, and I don’t recall ever saying no to anybody, SIORs are going to collaborate together. That means taking care of their client as though it was your own client because you know it is reciprocated. That experience is consistent around the country. It is simply the expectation when you call on the SIOR “bat phone. Everyone listens.”
Beyond Local Markets
Another key benefit for IBG members is having the ability to grow and expand outside their local markets. Independent brokers can rely on a network of trusted advisors and friends across major markets around the world.
This reach is crucial for firms looking to grow and tackle larger assignments. “We send out and receive assignments from other SIOR agents around the country,” says Hartsell. “It’s enabled us to get more into international brokerage and represent companies on a national scale.”
As a result of being an IBG member, Hartsell adds that he now has both “friends and advisors located in every major market” whom he can turn to when new opportunities arise.
The way that plays out in Smolensky’s own Chicago backyard is the fact that many firms need to include the market as part of their growth plans. He has become a go-to firm for many within SIOR’s IBG network to help execute their real estate strategies.
The value of multi-market collaboration is also reflected in a recent transaction Smolensky completed in partnership with Cathy Jones, another SIOR member in Las Vegas who serves as Treasurer of SIOR Global. A Chicago-based firm Smolensky represents had a space requirement in Las Vegas. He connected with Jones, and they successfully found a 175,000-square-foot distribution center in Las Vegas that met his clients’ needs. “We seamlessly got the deal over the goal line and from the client’s standpoint, it was as though they were dealing with me, even though Cathy delivered key local market guidance that resulted in finding a perfect facility in Las Vegas.”
That collaborative experience surrounding inbound and outbound business isn’t an anomaly for SIOR’s IBG network, but rather a common occurrence. Smolensky cites two current transactions as examples. He is in the process of completing a 100,000-square-foot lease for a Memphis-based firm and just executed a 30,000-square-foot industrial building acquisition transaction in Chicago for a SIOR member’s client in Dallas.
A key element that allows such collaboration to take place among the independent firms is they can tap into a much larger and deeper pool of resources and tools via the IBG. “You can get the big firm services delivered by an independent broker through the IBG,” says Hartsell. “Our network has a wealth of experts and multiple specialists at the top of their field who can do lease administration, data analytics, labor analytics, incentives procurement, implementing A.I., or any number of additional services — anything that’s missing inside your firm. The advantage is we’re all independent, so we think differently. We can execute, be more flexible, nimble and operate cost efficiently from a commission perspective, while still providing all those services,” he adds.
Smolensky says the value proposition he offers is a combination of local knowledge, experience, and earned trust. He says, “Trust is to me the number one thing that we are selling as real estate brokers to our clients. These are big transactions that are super important and not be taken lightly. I don’t care what size the deal is, what size company you are, that transaction is significant. Clients need to know that someone is working for them and they’re looking out for their best interests.” Through SIOR and IBG those values, ethics and integrity can be easily found.
Involvement in SIOR has allowed Smolensky to better mentor and grow his team of younger CRE professionals, too. For example, when he needed to create more structure and team building elements for his business, the SIOR network was invaluable in sharing ideas, best practices and advice on everything from codifying commission structures, getting organized or administrative aspects. “The network touches on every aspect of my business life and spills into my personal life, too. I’ve gained some very good friendships through the SIOR network,” he says.
It all adds up to a large-scale connection to firms of similar size, needs and viewpoints within the SIOR organization. The IBG network seamlessly facilitates relationships with others who value client relationships as much as you do and are willing to take care of your clients as though they were their own. That solidifies trust and builds a network much larger than an independent firm can accomplish on its own — thus proving out the value of SIOR involvement and membership.
At its Core: Collaboration and Relationships
The stories of Street Jones, Sarah LanCarte, Ryan Hartsell, and Dan Smolensky illustrate the transformative impact of IBG on their businesses. In a world where connections are key, IBG stands out as a vital network for independent brokers. By fostering collaboration, providing extensive resources, and facilitating cross-border transactions, IBG empowers its members to thrive in the competitive CRE landscape.
