A day after the end of its alliance with Newmark Group, Knight Frank has already found a new partner to expand its presence in the United States.
On Wednesday, the London-based real estate company announced a strategic partnership with Cresa, a tenant-focused commercial real estate company based in Washington, DC Combined, the two companies have more than 16,000 people in 384 offices in 51 territories.
Knight Frank’s new deal will be different from his global partnership with Newmark, which officially ended this week. Cresa only focuses on tenant representation, unlike Newmark, which also represents developers and landlords. As a result, Knight Frank operates a much smaller share of the overall market than it did with Newmark.
As part of the partnership, William Beardmore-Gray, President-elect of Knight Frank, will serve on Cresa’s board of directors, while Tod Lickerman, CEO of Cresa, will attend Knight Frank board meetings, according to a statement. .
Newmark and Knight Frank formed a partnership in 2006, with Newmark changing its name to Newmark Knight Frank. The company acquired UK retail leasing firm Harper Dennis Hobbs at the end of 2019, then rebranded itself simply as Newmark Group in October of last year.
In an interview, Newmark CEO Barry Gosin told The Real Deal that Newmark and Knight Frank still have an “informal relationship,” but said it was necessary to end the formal partnership for Newmark to grows without restrictions on mergers and acquisitions. He said Knight Frank’s business generates less than 1% of Newmark’s annual revenue.
âIt has limited our growth,â he said. âAs a public enterprise, our manifest destiny is to grow and develop. “
Cresa and Knight Frank’s strategic partnership comes as other major trading brokerages have formed their own international alliances in recent years, including Avison Young and UK-based GVA in 2019.