Challenge
Over a 10 year period, Progressive's real estate portfolio rapidly expanded to meet the high customer base growth. The company alternated between in-sourcing and out-sourcing real estate transactions and brokerage. In-sourced services often failed to meet transaction quality and diligence standards while outsourced providers had compensation models that were extremely expensive or conflicted with corporate objectives. The company called on Allegro to provide comprehensive real estate outsourcing services that addressed compensation conflicts and brokerage network affiliation constraints.
Solution
Allegro provided a team of experienced real estate transactional and brokerage professionals to meet the client’s on-site real estate transaction needs. The team has provided real estate transaction services for the national portfolio of claims offices from the client’s corporate headquarters. Local market real estate brokers are engaged to provide market-specific information and field site visits and coordination. Allegro engages the most appropriate broker in a market, free of network affiliation constraints on a case-by-case basis. Transaction volume for these offices averages 150 annually. In addition to sales and claims offices, Allegro provides transactional services on large-scale projects using its fee-for-service compensation model. This compensation model provides financial benefit to the client as it eliminates the distortions present in typical real estate brokerage commission structures and often results in fee-rebates from landlords that well exceed Allegro’s fees. Allegro provides comprehensive and detailed transactional support for these complex large-scale projects (e.g., call centers, corporate and regional headquarters) including site selection, developer/building selection, architect selection, and lease negotiations. Since 2003, Allegro has completed large-scale projects in Florida, Texas, Colorado and Ohio. Allegro provided this client with scalable transaction management assistance that met all of its real estate needs, independent of size or complexity, across the nation.
Additional Info:
Since 2001, Allegro has served as the Real Estate Transaction Management arm of one of the largest automobile insurance companies in the U.S. This client has a real estate portfolio comprised of approximately 7 million sq. ft. and 495 leases and 26 buildings in 50 states. Allegro has provided services, including management consulting, organization assessment, process design, technology selection, call center site selection, development consulting and approximately more than 200 tenant representation projects per year. Allegro maintains an on-site team (that has ranged from 3 to 6 FTEs) located in the client’s corporate real estate department and is deeply integrated with the design, construction, facilities management and financial control team on as many as 200 real estate projects each year.
