When a new company comes to your area, that means more than jobs to a real estate agent. It’s people who need housing.
So, how can you, the real estate agent, get to them before your competitor does?
It isn’t easy; the dynamics of a company move often mean that a Realtor is among the last to know.
“It usually is imperative that there is secrecy throughout most of the process,” says Jerry Mallot, who heads the relocation efforts of North Florida’s business community. “It’s a touchy process because a company usually doesn’t want to let people know it’s abandoning one area for another.”
The reasons for secrecy are many. Some relate to the area they’re leaving, others relate to the areas they’re considering.
The poster child, as any veteran Central Florida agent will tell you, was the hush-hush effort by Disney to buy land in 1969-71 for its theme park. The risk: if the owners of the low-producing citrus fields in that area knew someone with deep pockets was looking, the land prices would have escalated. Disney needed it all to make Walt Disney World a reality; a missing piece could have ruined the entire project.
“We are very aware of the real estate community,” said Mallot. “They are a vital part of the process but, until we get near the end of a deal, we have to keep our client’s interests at heart.
“When we get to the point that housing is an issue, we want the help of every agent we can get. A major part of a move is employee housing. We want that to be a plus for us, and the real estate agent is a key in this area.”
Mallot heads the Jacksonville Regional Chamber of Commerce’s Cornerstone initiative. He, his staff of a dozen, and their needs are funded by donations from the area’s business community, and they’re charged with finding clean industries and luring them to North Florida.
The goal, of course, is to expand the area’s business community through the infusion of the dollars that a new company will bring. Included in those dollars: the money to buy a home.
Mallot and his staff work with governmental agencies, but often at arm’s length because government is supposed to work in the “sunshine” and that means that nosy media members might find out that a deal is possible and report it, possibly thwarting the entire effort.
At any given time, Mallot said, the Chamber has 40-50 prospects on its list, of which “usually 15 are really hot.” The obvious targets are Rust Belt companies in areas that have a low quality of life and issues with governmental or union leaders, but many today are international as companies want a presence in the giant American market.
“We need everyone to understand the big picture,” said Mallot. “We are trying to sell the Jacksonville area, not just houses. If word gets out, it may ruin everything for everyone.”
He was quick to say that he understands that Realtors have a vested interest in digging out a prospect.
“In fact, sometimes we’ve found out about a company’s interest from a Realtor,” he said. “Many prospects have deals with national real estate companies, and the agents back home contact agents here.”
Yes, says Prudential’s Sherron Wilson, that’s so: “Our associates often get a referral lead before the move has been revealed.”
Like every real estate company, big or small, Prudential has a relo side of their business. Prudential Relocation is a giant international network that looks for every bit of information that might precede a move.
In Pru’s office here, Linda Lindenmoyer heads the team, working not only with Prudential’s relo efforts but also staying close to third party companies.
The ideal for a real estate company is to have an “exclusive,” a deal with a company that’s moving. The deal often includes a lowered commission fee in exchange for getting a substantial jump on any Realtor who’s not in on the deal.
An obvious one is Prudential’s relationship with the Jacksonville Jaguars; when a new player comes to town, he’s pointed in Pru’s direction.
More likely is a relationship between a company in transit and a national real estate company’s offices in both areas. The Realtors are given a jump on both ends — selling there, buying here — in exchange for considerations.
Smaller companies don’t have to be left out because they can’t afford a relo team; there are several national companies that will let them in for a fee.
Even with a relo effort, a major player like Vanguard Realty joins in.
“We’ve joined with Relocation Companies of the World,” said top-producing agent Maureen Dunn. “They have their finger on the pulse of our economy.”