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By Nathan Peck | TransActions
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The move to Colliers International should help West Michigan better play in the global real estate market, said Derek Hunderman, regional VP and managing partner of the company’s new local office. PHOTO: JEFF HAGE

GRAND RAPIDS and HOLLAND – To survive, American businesses must adapt to a global marketplace. Commercial real estate is no different.

As of May 1, Grubb & Ellis | Paramount Commerce in Grand Rapids and Grubb & Ellis | Focus Properties in Holland have joined Colliers International, in a move that will align the firm with one of the nation’s fastest growing global real estate services firms.

In a real estate market where a few centralized, institutional corporate giants dominate nationally, the move will allow the local firms access to the international markets, infrastructure and technology of the big players, while maintaining local control, Derek Hunderman, regional VP and managing partner of Colliers International in West Michigan, told TransActions.

“Colliers has positioned themselves as the network with the infrastructure of the big guys. That is exciting, to have that structure and support, while having the flexibility in the local market,” Hunderman said.  “Colliers is actively recruiting agents and firms to strengthen its network and firm. We are a great fit for them culturally.”

West Michigan is attractive to Colliers because even though sales fell 60 percent in 2009, Grubb & Ellis was able to gain market share and increase its return on revenue. Hunderman said the firm has taken the economic downturn as an opportunity to retool and retrench and is aggressively gaining market share in the process.

“What we’re seeing in the market is that deals do not come easily. They require an increasing level of creativity and sophistication,” Hunderman said. “Despite a dramatic drop in our revenues, we saw record returns on that revenue and that puts us in a strong position to reinvent ourselves.”

Based in Seattle, Colliers International’s network consists of 15,000 employees in more than 480 offices spread across 61 countries. In 2009, the firm took in more than $1.9 billion in revenue. Colliers has a reputation as one of the strongest brands in the industry and it continues to strengthen its business globally, thus giving West Michigan clients global reach.

“The market has changed. We are a global marketplace here in Grand Rapids. We need to be able to serve our clients globally, and they (Colliers) are the largest global player,” Hunderman said. “We have already gotten leads from them – that is what has us really excited about Colliers.”

Grubb & Ellis | Paramount Commerce was originally known as Paramount Properties when it was established in 1995, and later affiliated with Grubb & Ellis in 1997. Focus Properties began in Holland in 1987, and later joined Grubb & Ellis in 2001. The firms today manage 5.5 million square feet of commercial space in Grand Rapids, Holland and Kalamazoo, and currently have 1,500 listings in its brokerage business. The decision to join Colliers did not come easy, said Hunderman, and he is working to ensure that clients understand that ownership of the firm remains the same as the transition is completed over the course of the summer.

“Clients will see a change in how they interact with us – a shift toward more electronic communication. It will do wonders for transparency and accountability,” Hunderman said. “How they experience us is going to change for the better.”

Through the partnership with the third largest global real estate services firm, both Grubb & Ellis offices gain access to technology and other resources that have been available only to the large corporate firms. Additionally, the Seattle-based firm has an in-house mortgage brokerage arm, a valuable asset as lenders remain wary of the real estate industry.

“Financing is the linchpin on everything these days. When you can find the money, you can do the deal,” Hunderman said. “It is imperative that our agents are the best educated in the market. I see the potential for recruiting to come out of this. It will significantly up the game and help us in attracting more top talent.”

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TAGS:

• colliers international
• derek hunderman
• grand rapids
• grubb & ellis
• holland
• real estate