12/03/08

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Aiming high in low times

Jerry Anderson gave up his role as president of Sperry Van Ness to develop and lead a new franchise model for the business in Florida.

As president of Sperry Van Ness, Jerry Anderson spent the last four years focused on international expansion of the commercial real estate brokerage. Now, he’s given up the presidential role to focus strictly on expanding the firm’s footprint in Florida — despite the declining market.

In March, Anderson signed Sperry's first master franchise agreement, setting out to grow existing commercial real estate offices, and start new ones from coast to coast and from the Keys to the Panhandle.

"We see tremendous opportunity for growth in Florida, which is already the third largest state in the union, and agree with Jerry that he is the best man to achieve this growth in his home state," says Mark Van Ness, CEO and co-founder of Sperry Van Ness, which is based in Irvine, California.

Anderson comes with strong credentials.

Most recently, he transitioned Sperry from a regional brokerage with 350 advisors doing business in its home state, to an international firm with more than 900 advisors in more than 150 locations. Before that, as president of Coldwell Banker Commercial, he grew the company from $20 million in gross revenues to nearly $300 million in less than five years.

So why would Andersen give up the executive office to pioneer a new business model at Sperry, especially during a real estate downturn? Why did he shrink his commercial real estate universe? In short, he says, because nobody else was available to do it.

"Five years ago, I told the co-founders we could expand quickly by implementing this area development concept. But the company was forced to grow one office at a time because the operators weren't strong enough yet to take that route," Anderson says. "That's when I decided I would take on the challenge in my home state after my four-year term as president was up. It's a lifestyle choice. I want to spend more time with my family."

Admittedly, that may mean cutting his 14-hour days down to 10 or 12 hours. Anderson is racking up the miles on his car, driving from county to county in search of potential new blood to add to his franchisee pool. He is focusing most of his energy on areas of the state where Sperry's brand is not strong, such as the I-4 corridor and Miami. He's also been in talks with brokers on the Treasure Coast during his first month as Florida's master franchisor.

Anderson's growth strategy depends on finding specialists in key areas of the state. He's been talking with a successful multi-family specialist in Orlando and a hotel specialist in Jacksonville. He's been searching for self-storage specialists in Orlando and South Florida. He's on the hunt for industrial specialists in the southern and central parts of the state, as well as retail and office specialists throughout the peninsula. "I'm a firm believer in specialization," he says.

While Anderson is concentrating on growing the Sperry brand in specific regions and specialties, he's also unifying the offices that fall under his corporate umbrella, officially dubbed Sperry Van Ness Florida. That means a single Web site, cooperative advertising and more communication among the 50 offices.

"We're excited about the programs Jerry's instituting. We're pooling our advertising dollars to do statewide campaigns for our Florida business. This is revolutionary," says Mark Alexander, managing director of Sperry Van Ness' Fort Myers office and senior medical office advisor for the company.

Miguel de Arcos, managing director of Sperry Van Ness' Lake Mary/Orlando office, says Anderson's influence is already changing the way his office does business. "Jerry is providing a platform for us to network together and sell and lease each other's properties," he says. "Now, we look at deals statewide rather than just in our region, and work with other brokers to make them happen."

Qualifications, strategy and drive may not be enough. This isn't the best of times to grow a real estate franchise, according to Jack McCabe, principal of McCabe Research Consulting in Deerfield Beach, Florida. Sales are down, he says, and the industry is entering an age of consolidation where brands like Coldwell Banker are closing offices.

"It's like opening a new luxury car dealership or a new boat dealership," McCabe says. "Things just aren't selling right now."

But Anderson says the biggest challenge is not the economy. The way he sees it, tough market conditions are the perfect time to grow a business. With the resources and tools offered by the franchise system, such as broader advertising, Web technologies and a recognizable brand name, he's betting he can attract a cadre of superstar independent brokers to the Sperry Van Ness team.

McCabe isn't necessarily buying that line. "Some people will tell you these are the best of times to start a new business. That has proven true for certain successful entrepreneurs in the past, but it's also proven to be the downfall of many others," he says. "I wish Mr. Anderson the best of luck, but it would seem he might be two or three years ahead of the market correction."

While the downturn is an admitted obstacle, Anderson says attracting top-notch talent is the bigger issue. In the first few days of a road trip across the state, Anderson says he talked with six different agents who want to join Sperry Van Ness — but they don't qualify. "I need agents with track records, with client lists, with specialties, who are mature and can handle $20 million transactions," he says. "I won't open the door to just anybody."

Anderson wants to position Sperry Van Ness' brand to compete head to head with the larger brokerages in the state when the cycle hits its next peak.

His success strategy is based on three keys: providing a high degree of service, staying in constant contact with clients, and being a person people like, trust, and recognize as a money-maker. "Market roller coasters come and go, brokerages that bring value to investors ultimately succeed," Anderson says. "I'm looking at a 10-year agreement with Sperry, so the growth will be strategic. We aren't just looking to add warm bodies."

With only 50 offices, Sperry Van Ness is hardly on the Florida map, much less a dominant player. Anderson declined to pinpoint the exact number of offices he'd like to see in 10 years, or even five years, but his goal is to become a force to be reckoned with in the Florida commercial real estate market. That may not mean having the most signs on properties or even having the most market share.

"I'd like Sperry Van Ness to become a quality firm that can deliver quality services in any market of the state and in any product type," Anderson says. "We don't need to be the dominant player to do this. But we do need to be able to provide a high level of service to any region where investors are playing."

CB Richard Ellis declined to comment on Sperry Van Ness' Florida expansion. NAI Realvest, Marcus Millichap, VIP Realty and Studley did not return calls seeking comment on how Anderson's push will impact the Florida market.

"When I look at Jerry's skill set — the transaction know-how and deal know-how — he has the horsepower of a fine-tuned race car," said Bartow McDonald, managing director of the North Central Florida market for Sperry Van Ness. "Jerry is definitely a performer. I wouldn't want to compete against him."