LA’s boutique firms tout upsides in Compass, Anywhere deal
Boutique firms in LA's high-end market are confident in the benefits of Compass' acquisition of Anywhere Real Estate.
Los Angeles boutique firms, such as Carolwood, are not worried about Compass' $1.6 billion deal to acquire Anywhere Real Estate, despite talks of market share. Carolwood's CEO and co-founder, Drew Fenton, stated via text that the merger is "110 percent beneficial" for his brokerage and others in the boutique industry.
Fenton, who is part of an elite tier in LA's high-end market, has proven his success with his Beverly Hills-based brokerage appearing on two of the priciest megadeals in Los Angeles County this year.
While many in the industry may view this acquisition as a threat to boutique firms, Fenton believes it will actually benefit them. He states, "The luxury market is all about relationships and boutique firms have stronger relationships with their clients than larger firms." He also adds that boutique firms have the ability to pivot and adapt to changes in the market quicker than larger firms.
This is not the first time Compass has made headlines in the real estate world. The company, which has been rapidly expanding across the country, has faced criticism for its aggressive tactics and high agent turnover rates.
However, not all boutique firms share Fenton's optimism. Some are skeptical of Compass' intentions and believe the acquisition may lead to a decrease in competition and innovation in the industry.
Only time will tell the true impact of this deal on the LA real estate market. But for now, boutique firms like Carolwood are staying confident and embracing the change.