Today we attended the soft opening of the new Compass office at 1953 San Elijo Ave., Suite 101 in Cardiff By-the-Sea (next door to Cicciotti’s). More than 100 Compass agents will occupy both floors eventually (63 now).
Other offices being built include a 22,000sf, ground-level office in One Paseo in Carmel Valley, which will be the central hub for San Diego. Compass will be the exclusive residential real estate office in One Paseo, and have the valet parking right in front, along with 100 parking spaces.
The downtown Encinitas office on Coast Highway 101 will probably be the next to open early next year, plus there is another 11,000sf office being built out at the Equinox center in La Costa, which will be the new HQ for the Klinge Realty Group.
Compass started in San Diego in January, and we joined in July when there was 160 agents. By the end of this week, there will be 320 Compass realtors in the San Diego area!
Wow!
Donna and I with our manager Steve Salinas
What’s the point of those expensive big offices when most agents don’t even go to them?
That’s the old days when the business was full of individual agents.
Now with the big-producing teams, there is a need to have an office for the group to work together.
I thought you were against teams where there are multiple handoffs and not a single point of contact?
Easy now. I didn’t say I was doing it.
The business is changing fast and nobody listens to me.
At least Compass provides ample support (1support staff for every 5 agents) which hleps agents keep the focus on clients.
That looks like the old location of Wine Steals Cardiff.
Sounds like a ton of overhead Jim, big offices and lots of staff. Don’t you think the they will have to lower payouts eventually to turn a profit?
I’m hoping the billion dollars covers costs, at least until the IPO:
https://therealdeal.com/2018/11/12/compass-agents-purchase-20m-in-stock-options/
From the article: ‘sources said Compass appears to be heading toward an IPO within 24 months’.
Besides, real estate companies are happy to burn money and make no profit these days.
Redfin hasn’t been profitable, and the P-bricks aren’t either. I read this today:
Purplebricks continues to invest heavily in its U.S. rollout. Over the past six months, it has spent over $20 million on sales and marketing across seven States — more than double what it spent last year.
From a competitive standpoint, the most dangerous thing about Purplebricks is its investment risk tolerance. It is willing to invest tens-of-millions of dollars year after year to build market share — incurring big losses along the way. If you’re a traditional real estate agency, or a listed company, are you willing to do the same?