Corporate Execs Want Value, Not Martinis

Perception vs. Reality... Last week's Dispatch, Wal-Mart Generates a Lot of Attitude (Feb 2), posed the question, "How can corporate service providers generate sufficient perceived value for the corporate client that cost savings become subordinate?" Below are responses from two corporate real estate executives. Warning: They've got attitude!

From the technology industry: "There is a perception that real estate brokers are a bunch of white guys meeting for martinis over lunch and, for the most part, not adding much value to the transaction. I have gone on days of tours looking for a building and, in all the hours in the car, nothing other than football scores and golf games were discussed. Being friendly is nice but it's not enough to get me to select you as my broker.

"If a real estate agent were fluent on green buildings, construction costs, new styles of workplaces, or intelligent buildings, then the customer would get something besides a money changer. Even if not fluent, just know enough to recognize what would make sense for this customer and call in a local consultant to lay out a case."

From the medical industry: "Contrary to popular belief, 'perception' is not everything if it is not backed up with appropriate action. We have prepared a list of approved brokers with whom [we] will do business. All of the brokers have signed an agreement, up front, as to the terms under which they will provide services, including a very competitive commission schedule.

"If the agent’s 'perceived value' does not equate to 'real value,' they are taken off the approved list. Our office broker is probably the top producer in the metro area and has earned several hundred thousand dollars over the last few years from our business. He has several other clients and actually does 'make it up on volume' while providing excellent service.

"You can whine about Wal-Mart (who provides real value) and you can try to bring 'perceived value' to your real estate clients, or you can thrive on the competition and provide excellent service to your customer. I would rather work with a corporate service provider who brings cost savings and real service/value to the table."

-- Peter Pike