Buffett’s Berkshire Hathaway to launch commercial real estate business

Warren Buffett’s Berkshire Hathaway is to launch a commercial real estate advisory business. Berkshire Hathaway Commercial Real Estate will launch in the US in the first quarter of 2019 and will then be pushed out internationally including in London. It will be spearheaded by existing franchisees of its residential business at Berkshire Hathaway HomeServices, which already operate as separate commercial divisions. In an interview with EG, Gino Blefari, Berkshire Hathaway HomeServices’ chief executive, said: “Our plan is to have it be a standalone commercial franchise. “This means a completely separate offering from Berkshire Hathaway HomeServices and a new brand and logo. It will be headquartered in Irvine, California, but led by regional brokers who will focus solely on commercial real estate. “It’s another opportunity to leverage an iconic brand, which we think will resonate very well within commercial.” The commercial business will focus on investment and leasing across industrial, retail, multi-units, offices, hospitality, hospitals and land. Blefari said it would encompass everything outside residential. The specific direction will differ for each location, based on the local market and investor demand. There are companies that have a global appetite today for this product. We’ve had those conversations in Hong Kong, Tokyo and on mainland Europe, as well as the US Blefari said that of an estimated 275 franchises in the US, up to 15 could be selected to support the commercial brand. “We’re going to build this offering, launch it in the US and then take it international,” Blefari said, adding that global expansion would likely follow the route of the residential component, targeting international financial hubs. Mitch Lewis, managing director of EMEA at Berkshire Hathaway HomeServices, said that the commercial offering would become available in the locations where the company is also setting up its residential business, London is on the horizon, he added. “The footprint of what is already in the works and has been partially established would be the natural footprint to target. Berlin, London, Vienna, Paris, Milan, these are centres of commerce where we feel that the residential offering would work very well with the commercial offering.” Michael Jalbert, senior vice-president of global sales for the Berkshire Hathaway HomeServices’ franchise network, HSF Affiliates, added: “There are companies that have a global appetite today for this product. We’ve had those conversations in Hong Kong, Tokyo and on mainland Europe, as well as the US.” To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette Picture: Stephen Smith/Sipa USA/REX/Shutterstock