As improved technology continues
to narrow the global communications gap, it is becoming increasingly important for many companies to
expand internationally.
“The ‘flat world’ was created by today’s
access to split-second communication
enabling individuals to retrieve information faster than ever before,” says David
Lanier, managing director of brokerage
and corporate services for CB Richard
Ellis in Atlanta.
Smart Business talked to Lanier about
the importance of a company’s ability to
go international.
How has the flat world theory changed companies’ real estate needs?
It has made the world smaller from a
communication standpoint. However,
companies must establish or retain a
physical presence in most of those major
markets where clients want to expand. A
real estate company, for example, still
needs its people on the ground in India,
China, and Europe to service those
clients whose business has grown internationally.
Are more domestic companies seeking a
presence overseas?
International expansion is not for
everyone, but if your company is
involved in the communications, financial services or technology industries,
you either have a global presence or
your competition will pass you by.
How difficult is it to build an overseas presence? Do you staff with Americans or people native to the country?
Staffing should include a combination
of people from the United States as well
as natives of the country. For client satisfaction reasons, I think the most effective way, however, is to have your own
people on the ground. That way you can
look your clients in the face and assure
them by saying, ‘You know what, when
you go into those foreign markets and
you feel a little unsure, you have a CBRE
person on the ground with you.’ If that is
not possible, the next best alternative is
staffing through alliances or joint ventures with existing firms already in those
locations.
Are more domestic companies opening
branches overseas?
Absolutely. In real estate, our clients
demand it. If you are a small- to mediumsized firm seeking only domestic businesses, then you do not need to be international. But for a global service company like
CBRE to maintain or grow its international client list, especially on the corporate
side, a presence overseas is critical. The
size and scale of a large real estate company makes the international market feasible
and the expenses associated with growing
in emerging markets manageable.
How hard is it to purchase real estate overseas?
The answer varies from market to market. Whether a company wants to buy or
lease also depends on the market. Doing
business varies greatly from market to
market, due to cross-cultural differences, reinforcing the importance of
having local influence and local expertise inside your company.
What’s the process when a client is looking
to get into real estate overseas?
We have centers of excellence, or
expert centers, where we can refer a
client. For example, if an Asian client
wants to open a foreign office and needs
help or advice in doing so, there is a specific group of people with whom they
can work with to start the process for
any type of real estate service from a
multi-billion dollar investment to a single distribution center.
For U.S. brokers, it’s an easy process
because it’s not simply a hand-off. No
client wants to feel like they have been
abandoned and passed off to someone
else. It is okay, however, to say, ‘Sir, here
is the number to the desk of my contacts
in the Beijing office. They’re the experts
in your market and I am completely comfortable putting you into their hands.’
Are companies that are not international at
a disadvantage?
That’s such as broad question. It
depends on the business of the companies. I can’t think, however, of many
companies of considerable size and
scale that would not benefit from
branching out to international markets.
DAVID LANIER is managing director of brokerage and corporate services for CB Richard Ellis. Reach him at (404) 504-7906
or [email protected].
