Why Consulting Firms Are Building Their Own Real Estate Brokerages

Episode 55 of Service Business Talks with Fexingo. Lucas and Luna explore why top consulting firms like McKinsey and Bain are launching in-house real estate brokerages — and what it means for the commercial property market. They zero in on a specific driver: the $1.2 trillion wave of office and industrial leases expiring between 2026 and 2028, and how consulting firms see an opportunity to capture transaction fees, data, and tenant relationships. Lucas walks through the economics: a typical mid-sized lease brokerage fee runs 4-6% of total rent, which on a 10-year, $20 million lease is roughly $1 million. With 300,000 such leases expiring over the next 24 months, the addressable fee pool is enormous. Luna pushes back on conflicts of interest — can a firm both advise a client on space optimization and collect a commission on the new lease? They discuss how firms structure separate entities to manage the tension, and why some clients are demanding rebates. Back to the donation segment early on. #ConsultingFirms #RealEstateBrokerage #CommercialRealEstate #McKinsey #Bain #Deloitte #LeaseBrokerage #TenantRep #PropertyMarket #ConflictOfInterest #FeeStructure #OfficeLeasing #IndustrialRealEstate #BusinessServices #ProfessionalServices #Consulting #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo