Travers Realty Merges with Cresa Los Angeles – Creates Powerhouse Tenant Representation Brokerage Firm in Southern California
LOS ANGELES, October 27, 2014 – Travers Realty Corporation, the oldest and most established tenant representation firm in Los Angeles, has merged with the Southern California offices of Cresa.
The merger adds 32 brokerage professionals to Cresa’s already strong operations in Los Angeles and Orange Counties with offices in West Los Angeles, Woodland Hills and Newport Beach. Cresa will maintain the current Travers Realty headquarters in Downtown Los Angeles under the name of Travers Cresa. The newly combined firm will have nearly 150 employees within the region and well over 1000 internationally.
“The outcome of this merger is much greater than the sum of its parts,” said Cresa Managing Principal Gerald A. Porter and one of the firm’s founding principals. “While we have been great competitors, we have always shared the single-minded purpose of being strong advocates for tenants, no matter their size. The obvious synergy created by combining the firms’ formidable talent and experience in tenant representation was a compelling driver to consummate this deal.”
“This is a merger of companies with similar corporate values, commitment and focus,” said Travers Realty founder James Travers, who becomes Managing Principal and a member of the Cresa Los Angeles Board of Directors. “Cresa recognized the value of our talented and experienced brokerage team and we saw this as an excellent opportunity to enhance our firm’s already proven ability to service the real estate needs of our clients, on a local, regional and national basis. The integration of the two talented brokerage teams has been seamless and without question creates an even more formidable tenant advocate.”
Both Travers Realty and Cresa were among the early adopters of exclusive tenant representation in California, spurring the debate over the benefits tenants receive from unbiased representation when compared to the traditional commercial real estate brokerage model. Recognizing the potential conflict of interest that arises when a traditional firm represents both sides of a real estate transaction, California recently enacted a law requiring brokers to disclose their relationships with both tenant and landlord. The new law, known as AB 1171, goes into effect in January.
“The commercial real estate brokerage industry tends to favor commercial landlords over tenants, since that’s where the large majority of revenue comes from,” added Travers. “This new law in California should raise the awareness of the conflicts that exist within many brokerage relationships.”
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