Staubach Company has been gobbled up by Jones Lang LaSalle and every tenant representative in the country believes the front-of-the-line vacancy spells happy days for players still in the game. Studley, now the big player in tenant representation, can surely command top billing, while boutique firms across the country will rush to present themselves as the next Staubach in town from him. However, corporate tenants are now much smarter than falling under the spell of an old (albeit superior) Dallas quarterback. At the beginning of the Staubach years, the prospect of meeting Roger, or the intoxication of working with a star, brought a lot of business. In fact, he perfected the business. Tenant representative firms across the country have sprung up with varying degrees of success thanks to Staubach. However, customer delivery remains the most precious asset, and this is where the chaff is separated from the wheat.
Tenant representative firms of all types and sizes are, for the most part, exactly the same as peanut butter. They are all pretty much the same and provide no real value beyond (snort) the boring description that they “avoid any conflict of interest”. Corporate clients need much more than similarities and lackluster deliveries to be successful in the next decade. Tenant representative firms will have to do more; need to provide a clear and convincing valued service beyond the simple tenant buyer agency form.
Jones Lang LaSalle will be a major force. Roger is not going into the dark night. far from there He will head to the Board of Directors, where he will continue to exert his expert influence on corporations and further widen the gap between smaller tenant representatives and his legacy of expertise now emboldened by a global platform.
While tenant representative firms in the US have dreamed for years of a world without Staubach at the head of the queue, they may regret the new and demanding additional level of service they will need to create to compete with the NEW STAUBACH and other leading holding representation players. The job will not be easier, it will be exponentially more difficult.
Only those firms that can deliver positive, immediate and some superior results, process management and added value will move up the queue. Remaining a pedestrian tenant representative firm suggesting to clients that the “no conflict of interest” angle is the primary outcome will be a huge mistake like Jones (the New Staubach), Studley, CBRichard Ellis, etc. everyone will be filing their nails for the next generation representing tenants. These guys play hard and play for support and answer to Wall Street (where they get money and staying power).
The only way to deliver greater client results is to go beyond an agency and boldly become a major player in the client’s mind providing exactly and every element of service they expect. It’s a big market, and the bigwigs aren’t in every city or operating in every size deal. Therefore, smaller companies can gain market share, but only if they move towards excellence, zero errors, perfect service and the highest degree of professionalism.
The tenant representation business model is under curious strain as this leader evaporates and the rest of Staubach Retail has announced that they too will represent landlords. But at the DNA level of the business model, it remains a high-margin, high-revenue gig that will continue to attract talented professionals. Clients also recognize the value of key services and will continue to be attracted to Tenant Rep’s strong players.
Yes, Jones will get rid of Staubach’s agents eventually, but for performance reasons. It is an illusion that an absent Staubach market now clears the beach for landing. He just walked up the hill with a clearer shot of the beach his competition is now walking on. Keep your eyes high and run fast. But you’ll still need more love to get the job done. Thanks Roger for showing us the way.