Feature Story
VIP Celebrates 30 Years of Expansion, Prosperity in Southwest Florida’s Commercial Marketplace
By Elizabeth W. Pearce

It’s not easy to thrive in a market where huge amounts of money are chasing very few transactions and broker allegiance is often transient. However, at VIP Commercial, good management, communication and cooperation have helped to retain agents and take productivity to new heights. Last year, the company’s revenues totaled $414 million.

“Having experienced, long-term agents has been great for us,” said Pam Van Vleck, commercial sales manager/broker, who has been in commercial brokerage and property management since the early 1970s. She joined VIP in 1998 to head the property management division, just as it was affiliating with Grubb & Ellis. Last fall, VIP terminated its affiliation with Grubb & Ellis, in part to expand into other Florida markets. At the same time, VIP’s property management company was renamed Commercial Property Management Services (CPMS).

“It was to our advantage to decide whether to go back to being independent or tie into another brand or network that would give us national contacts,” said Van Vleck. “Our group decided that there was value in having a national tie-in, without the necessity of being a brand.” TCN Worldwide was a perfect fit.

Founded in 1989, TCN Worldwide offers comprehensive commercial real estate transaction, management and consulting services. However, unlike most global, commercial firms, it is a member-owned consortium that encourages independence and eschews central authority. Currently, TCN Worldwide has more than 45 member firms with a total of more than 1,200 brokers in the U.S., Mexico and Europe, and manages approximately 80 million square feet of commercial space.

“The beauty of being a TCN Worldwide member is that we’re not a brand, but an affiliate of a respected, global corporation. Because of that, we can offer our clients more exposure, higher returns and faster transactions, without sacrificing the personal relationships we have nurtured for decades,” said Van Vleck. More important, VIP’s territory now extends from Collier County north to Sarasota in Manatee County.

Also, being associated with TCN further distinguishes VIP Commercial from its residential counterpart and reinforces its connection to the global, commercial community. According to Van Vleck, commercial brokers must have the worldwide contacts and the latest technology to ensure seamless transactions - something that few independents can offer these days. According to Van Vleck, other advantages to working for and with VIP Commercial include:

¥ In-House Property Management.
One way to continue controlling a property is to bring in a property management team to meet the management needs of the investor. That way, when an investor wants to sell, the broker still has a relationship with that person, and not only can market and sell the property, but can assist that client in acquiring another property. Through CPMS, VIP Commercial advisors and other brokers are able to offer their clients a complete roster of commercial services.

“We have a number of clients who own properties in market areas where VIP does not have a strong presence, and therefore, they’re working with another brokerage,” said Van Vleck. “By having a name that defines what we provide, the client can work with both entities, thereby eliminating any perception that we’re trying to compete with another broker’s sales or leasing business.”

¥ Attractive Commissions.
According to Van Vleck, VIP’s tiered system offers “more aggressive commission splits than any other company in this market.” Because the system is based on productivity, veteran advisors are not subsidizing neophytes and therefore, have greater incentive to succeed.

¥ Experienced Teams.
Many advisors embrace the team concept, which capitalizes on individual strengths and complementary areas of expertise. Typically, team leaders prefer to concentrate on higher-end investment sales and development, turning over leasing and market research duties to others on their team.

Two of the company’s most successful teams are headed by top producers Gary Tasman and Paul Sands, and include personal assistants, marketing and business managers, and other advisors. “It’s not as if we’re going out and hiring a lot of newly licensed agents,” said Van Vleck. “We concentrate on building the strengths of the agents who have been with the company long term and support their continued success.”

While not all of VIP’s commercial advisors work with teams, all are team players, including Cramer Partridge, MAI. Partridge is one of the few commercial advisors who work independently at VIP, much as he has since 1981.

“I guess it’s the camaraderie and social interaction between management and the advisors that keeps me here,” said Partridge, who has declined numerous opportunities to go elsewhere. “We’re more than just business associates. We’re true friends. Many of my clients are good friends, too, which is nice. I think we’re lucky that way.”

History of VIP

VIP Realty Group has been a presence in Southwest Florida’s real estate industry since 1975, when The Mariner Group established Vacation Investment Properties as its on-site sales office for South Seas Plantation. Although commercial was always a small component of the company, it wasn’t until CEO Charles Ashby took the helm that its commercial operation really took off.

Initially, Ashby joined Mariner as a consultant in 1992 during a time of change for the company, which was in the process of selling South Seas. “At that point, the company had divested itself of many of its assets (such as Robb & Stucky and Guardian Title) unrelated to development and hotel management, which was its core purpose,” said Ashby. In 1994, he bought the real estate company (by then known as VIP) from Mariner and began its big commercial push.

Today, VIP is regarded as one of the area’s most prominent full-service real estate firms. In addition to its real estate company, which includes VIP Commercial - TCN Worldwide, VIP Realty comprises a mortgage operation, a title company and a property management firm, Commercial Property Management Services (CPMS). Commercial Sales Manager/Broker Pam Van Vleck and her husband, Gene, are partners with Ashby in CPMS, which was created to enhance the level of service to investors and absentee owners.

“Ten years ago, there were no national companies here and the level of expertise was nothing like what’s required today,” said Ashby. “To be successful these days requires service after the sale. We have so many absentee owners relying on our eyes and ears to protect their investments.”

According to Ashby, commercial real estate has become an increasingly significant part of VIP’s operation, shifting from a 90% residential and 10% commercial business split in the early 1990s to about 60/40 now. Part of the reason is that commercial agents (referred to as “advisors” at VIP) do more for clients than ever before.

Not surprisingly, company revenues have soared in the last 10 years, from $154 million in 1994 to $1.2 billion in 2004, including $414 million in commercial transactions. This year, VIP reported more business in the month of January than it did in all of 1994.

Ashby attributes much of the company’s prosperity to timing. “People forget that from 1990-1994, the market declined 10% a year. Since then, however, we’ve been blessed with a great external market,” including a thriving commercial sector that has seen property values skyrocket, particularly in recent years. “We’ve capitalized on (the market boom) and were ready when the market was ready,” he said.

“We’re proud of our sales because they’re the score after the game. But the real victory is in the long-term relationships we cultivate,” said Ashby.

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