Staking a claim against formidable opposition

Real Estate Weekly, June 25, 1997

Today, in New York City and Long Island, Farkas oversees over 50 brokers and more than nine million square feet of prime office space.

Starting virtually from scratch in 1993, Regional President William D. Fugazy, Jr., and Farkas, who worked for him, built KOLL from the ground up. "I'd like to say it just happened, but it was hard work. We paid attention to every aspect of creating a well-rounded presence for KOLL, hiring a solid base of top brokers and signing up exclusive agencies with good buildings. Joe was the catalyst and an integral part of our phenomenal achievements," Fugazy said.

Creative energy, diligence and the benefits afforded by the full-scale support of KOLL's national organization were the winning formula that made things happen for KOLL's New York office. With some 60 percent of KOLL's national clients possessing headquarters' operations within the tri-state region, it becomes easy to understand KOLL's potential for success in this marketplace.

"We had the synergy, determination, the strength of KOLL behind us and the promise of a market on the rise on our side," Farkas said.

KOLL's industry prominence and national relationships contribute to local achievements in numerous ways. "To effectively stake our claim within this marketplace, we at KOLL knew we would have to wield a lot of different tools. As such, we had to expand our brokerage expertise and experience, so our first order of business was to build a transaction-oriented office. And, in doing so, we were able to more fully flex all of our service muscles - including tenant representation," Farkas explained.

This approach paid dividends. According to Farkas, "KOLL has been more successful here in New York than we ever imagined. We never expected this rapid growth and depth of business in such a short time-frame, with activity heating up across our numerous service lines."

Farkas quickly sized up the market and saw that conditions were providing him with a golden opportunity to establish a major presence for KOLL. There were an abundance of players in the market and consolidations had just begun. KOLL was ahead of the curve on a strategic merger and acquisition binge that was positioning it for substantial growth. The time was ripe. Farkas knew the market and had KOLL's substantial backing in place to seize the moment.

He recognized the fact that although the Downtown Manhattan market was in the doldrums, it was poised to come back, and that the players who were previously committed would be the ones in the catbird seat as the market picked up. "As other firms were pulling out, we went in to establish our presence ahead of the curve in 1994," Farkas explained. Today, KOLL has a recognized track record and manages a million square feet of office space in its Downtown, full-service office.

Similarly, Farkas saw the opportunity to expand into the Long Island market in 1993. "We built a strong base of business when no one else was there, offering services that no other company could deliver," Farkas said. "We set the standard. Now, four years, later other firms have started moving into this market where we have a very strong foothold." KOLL's Long Island office manages more than three million square feet of prime properties through its Nassau and Suffolk County offices.

"The timing was right for strong national players to move to the forefront. Today's real estate customers typically constitute a higher concentration of institutional ownership and corporate space users," Farkas said. "They are selecting fewer service providers and those providers must qualify by offering a comprehensive array of services. The KOLL organization has the clout to offer these capabilities, especially to national clients who want a single provider."

KOLL's areas of activity include property and facilities management, tenant representation, marketing and leasing, investment sales and financing.

KOLL has surpassed every goal it set for its entry into the New York market and made it a valuable entity in its own right. Now KOLL has come full circle and its strength in the New York City and Long Island market has made it attractive to other companies looking to establish a major foothold in this market.

Joe is the youngest senior vice president and managing director at KOLL, which in 311 cities employees 2,000 people. "As far as I can remember, I have always loved the real estate business," Joe said. His experience goes back to his earliest memories, having grown up with a father who is Executive Vice President for U.S. Life Realty Services.

Work experience started with summer jobs painting office building boiler rooms one could say he started at the bottom. Over the years he has learned all aspects of the business, including appraisal, brokerage and management. After graduating from the State University of New York at Stony Brook with a B.A. in Economics, his first full time job was with Cushman & Wakefield, where he moved up from appraising to brokerage. His next job was with Tishman Management & Leasing, where he was an executive before the KOLL acquisition.