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Kevin Maggiacomo, president and CEO of SVNNew York, NY Kevin Maggiacomo, president and CEO of SVN International Corp. (SVN), sat down with the New York Real Estate Journal for a question-and-answer session.
Q: 2015 was an exciting year for SVN. From a name change to international expansion, tell us more about SVN’s rapid growth.
A: Changing our name to SVN was an exciting and welcomed shift for our organization. We’ve been calling ourselves SVN for decades, and our web address has always been svn.com, so making it our official name was a logical step. We also felt the new name better represented the company’s stakeholders and the brand pillars — open, inclusive and innovative — that together create the Shared Value Network of trust and respect that underpins our business model.
In 2015, SVN experienced very dynamic growth in both services and offices, domestically and internationally. We added 25 offices and expanded into four countries, now totaling over 1,600 advisors serving 500 markets across the world. Just last month we were, once again, named as the 6th most recognized commercial real estate brand in the Lipsey Survey.
In the New York market, this momentum has been quite apparent. In Connecticut, New Jersey and New York, there are now 12 SVN offices being leveraged by brokers across the world. Through SVN’s practice of compensated cooperation, advisors are able to take advantage of local expertise, boots on the ground if you will, in one of the nation’s most robust commercial real estate markets. SVN advisors from Florida to California drastically expand their client’s investment options by working with New York market firms to identify opportunities. It’s a win-win for all stakeholders.
Maggiacomo speaks at SVN 2016Q: What do you think sets SVN apart in today’s commercial real estate industry?
A: The commercial real estate industry is often self-serving. As a company SVN wanted to rebel against this mentality. This is why we are reinvigorating and bringing back our original company mission statement, which is to, “Create amazing value with our clients, colleagues and community.” SVN was founded as a Shared Value Network, a belief that together with the entire commercial real estate ecosystem, we can both elevate returns and society by creating value for all.
As far as we see it, the only way to ensure maximum value, for the client, broker, marketplace and community, is through collaboration. Referred to as the “SVN Difference,” all SVN advisors actively market properties to the entire brokerage community and share fees equally on any given transaction. 50% of the commission, 100% of the time.
In addition to SVN’s culture, our commercial real estate technology platforms provide advisors with an unmatched competitive advantage. From online training courses to quickly generated marketing collateral, SVN offices have access to the most innovate and dynamic platforms in the industry.
Yet, this brings up another huge differentiator. While we can compete head to head in many markets with the other national and international firms, our franchise offices are independently owned and operated. This means decision makers on client transactions are right there in the local market they are serving. This increases efficiencies and also local market knowledge. Yes, our platform means we can attract new buyers into local markets, but commercial real estate is still a local business.
All of this would be nothing though if it weren’t for our people. From executive leadership to support staff, at SVN we place a very strong emphasis on building diverse and balanced teams. That is why we actively participate in many industry outreach programs. Promoting the advantage of gender balance in leadership, we co-founded the 5050x2020 movement. SVN also supports Project REAP, which gives us access to diverse and accomplished commercial real estate talent.
Maggiacomo with the SVN leadership teamQ: Speaking on gender equality, you have been a vocal advocate for increasing diversity in the commercial real estate industry. How have you incorporated gender balance on the SVN leadership team?
A: In 2013 I had a wake up call. I was at an SVN executive meeting creating a growth plan, which meant that all of us in the room needed to collaborate and think high innovation and creativity. Looking around the conference table, we had mostly white, male baby boomers…basically “groupthink” at it’s worst. In that moment I saw the imbalanced perspective that was caused by a gender-imbalanced executive team. I knew it needed to change, and decided right then and there to create a program for balanced leadership. Those efforts have paid off. Today SVN has a restructured executive team with nearly equal numbers of female and male professionals. This team operates as a think tank of new dynamic ideas…and has increased company profitability by more than 100%. I truly believe diversity and gender balance are the engines of innovation, and at SVN we do everything in our power to ensure that this structure remains in place.
Q: How does SVN plan to continue the expansion momentum?
A: First, we will continue to enhance SVN’s cloud-based suite of real estate tech programs. Despite our nearly 30 years of continuous operation and expansion, we are by far the youngest of the top 10 brands in our industry so it’s natural for us to leverage technology to bring unique opportunities to our stakeholders. These include S4G: The SVN System for Growth, a unique online training program unlike anything else you will find in the industry, and the newly revamped “SVN Live Open Sales Meeting,” where we present our latest listings to the entire industry, even our competitors.
SVN also plans continued expansion into strategic international real estate markets. We are currently looking to add at least four new master franchises across the globe in 2016.
Q: Lastly, can you give us your take on what we can expect from the 2016 commercial market?
A: Earlier this year I released my 2016 commercial real estate market outlook titled “Uncertainty Breeding Opportunity” and, so far, it seems to be right on target. After many years of domestic economic expansion, and an ever-recovering and ever-growing real estate market, this year opened with lots of uncertainty. It’s no wonder investors were skittish, look at the landscape - China’s economic growth is moderating, energy prices are declining, and geopolitical threats such as ISIS consistently pose a threat to European markets, and the rest of the world. Even with all these forces at play, the U.S. commercial real estate market fundamentals have remained strong and consistent, and foreign investors have noticed the opportunity. In January, the Association of Foreign Investors in Real Estate (AFIRE) reported that 64% of respondents to its foreign investment survey plan modest or major increases in their U.S. investments this year. With 1Q16 now closed, I imagine this investment trend will only increase throughout the remainder of the year.
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