As SoCal Real Estate recently reported, commercial real estate firms Madison Marquette and PMRG, which has a divisional office in Irvine, California, are in discussions to merge operations. Closing is anticipated by June 24. We spoke with Rick Kirk, chairman and CEO of PMRG, about what this merger might do for his firm’s Orange County office and other business trends in the market.
SoCal Real Estate What would this merger do for PMRG’s Orange County office?
Kirk: The merger vastly expands our expertise in the retail and mixed-use arena. In today’s competitive environment, tenants are more focused on amenities and lifestyle as a means of attracting and maintaining top talent. The ability to better speak to these issues strengthens PMRG’s position in the Southern California market. In addition, PMRG’s exposure to Madison Marquette’s client base and Madison’s to PMRG’s will allow us to leverage both organizations’ existing relationships in seeking growth in all the major real estate food groups.
Do you expect to see more mergers like this affecting this market?
As institutional owners continue to buy and control a larger percentage of the commercial real estate market and their demand for service continues to expand even more rapidly, smaller regional firms will continue to struggle to provide the resources demanded to compete with larger firms. Ultimately, this will lead to more mergers and strategic alliances.
What other business trends are you noticing among CRE firms in the Orange County market?
Given today’s low unemployment statistics, firms are constantly seeking any competitive advantage in recruiting and retaining top performers. The firms that not only provide competitive compensation but resources, support, amenities, and a great working environment have a distinct edge over the competition — all of which enhances their ability to deliver excellent service to their clients and partners.
What else should our readers know about this merger?
This merger provides us the ability to deliver a much broader range of services to our clients and partners, while maintaining the same commitment to quality and excellent service for which PMRG has been known over the past 60-plus years.