Welcome!




Expand Your Education with These Courses from
Business Creation - Prospecting: Skills for Sales Success: Part Three.
Customer Relationship Building: Skills for Sales Success: Part Seven.
ACE: Purchase Reverse Mortgage Course.
Bundle 2: CIPS Elective Courses (Non-US Version).
Bundle 3: CIPS Institute (Non-US Version).

Corporate Relocation: A Return to Business as Usual? Or Has the Model Morphed for Good?

Have a comment on this article? Share on Facebook!

By John Sculley, SCRP

Looking back at the impacts of the relocation collapse is very sobering. As employers sharply curtailed their transfer volumes and new hiring, the first victims of declining moves were the relocation management companies. They had become so dependent on real estate referral fees as their primary revenue stream that they were hurt disproportionately because when volume dropped, fewer homeowners would or could sell, and extended marketing times strained cash flow and staff resources.

This earnings impact has accelerated consolidation of the relocation management industry, with some leading firms absorbed through mergers and acquisitions and others driven to restructure their ownership. We see this wave continuing for several more years in the aftermath of this overcapacity period.

Of course, brokerage-based relocation directors have been seriously challenged by these events, too. Shortfalls in referral volume and declining home sale prices have caused many brokers to scramble into repurposing their relocation departments, often into REO/distressed property services or other corporate/institutional-type services. Finding the right strategy for a recovering market is on the minds of many relocation directors.

Is the recovery real? Is the relocation segment still viable for brokers? Worldwide ERC’s latest Transfer Volume and Cost Survey (published 2012) reports a total of 184,433 moves by its corporate members, characterized by:

• 40 percent new hires and 60 percent current employees
• 41 percent homeowners and 59 percent renters
• Total spend of $9.3 billion

Continue Reading 1 2 3

Want instant access to great articles like this for your blog or newsletter? Check out our 30-day FREE trial of REsource Licensed Real Estate Content Solutions. Need easy stay-in-touch e-Marketing solutions too? Try Pop-a-Note for 99 cents!
Join RISMedia on Twitter and Facebook to connect with us and share your thoughts on this and other topics.




Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Copyright© 2014 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com

Our Latest News >>