Crazy market has top brokers on the move--and firms taking advantage.

It's been one heck of an active real estate market--just not that type of activity brokers prefer to see.

With the downward spiral of the real estate industry, and greater economy, many commercial brokers have reconsidered their careers and--for a variety of differing reasons--many have opted to switch firms over the last six months. But those in the know say this type of movement is all pretty typical of a down market.

"Brokers who are making money don't move; they're loathe to make a change," said Daun Paris, president of Eastern Consolidated.

But with fewer brokers thriving in the commercial market today, staff changes have picked up, as people in the industry have begun to re-think their careers. Job security is an obvious theory for the movement; Paris notes that in the downturn of 1989, the industry saw 35 brokerages dwindle down to just a few, as small and mid-sized firms went under. But beyond that, brokers shift gears for a whole host of reasons.

For some, transitioning firms is about breaking into a new aspect of the business. Some brokers swap companies for a change in culture, but others are looking to take up new endeavors. For example, some make the switch from sales to leasing, or vice versa. And with apartment buildings expected to return to normalcy from this recession first, Paris expects more brokers to focus on multifamily investment sales.

While the SelectLeaders/Cornell real estate job barometer predicts a bleak 2009 job outlook for the industry, it suggests the multifamily market could prove to be a silver lining: the multifamily sector accounted for 40% of real estate job postings through the first half of 2008. And this trend could spur more broker movement in the coming months.

Paris said some in specific niches, like hotel and new development, are looking where the grass is greener. Additionally, she suspects many working within a territorial brokerage system may feel limited and have begun looking elsewhere, especially if their assigned submarket is performing particularly poorly.

While few firms are in expansion mode, the job barometer says the industry still has staffing needs: the study suggests a demand for seasoned portfolio managers with superior financial skills; those with a strong understanding of capital markets, multiple layers of equity and new forms of debt capital; and talent who "knows how to play the restructure game from tough negotiation and legal brinksmanship through working the real estate to maximize return."

And those evolving needs, both on the broker's side and the firm's, has resulted in a flurry of staff movement over the past several months, particularly among mid to upper-level brokers (as recessions typically steer the inexperienced away from the industry altogether).

Earlier this year Massey Knakal COO Tim King left the firm to launch his own brokerage, CPEX Real Estate; this fall Howard Cross joined GVA Williams as managing director of its tenant rep division after spending three years with CB Richard Ellis; Patrick Breslin joined Grubb & Ellis after anticipating change at his former firm GVA (now re-branded as Williams), which First Service Corporation acquired a 65% stake in; and Joseph Cardi joined Williams as senior managing director after spending time at Newmark Knight Frank.

"I really think the movement comes from brokers realizing they can make more money when they're with other smart, talented people," Paris said. "You need to be nimble, you need to have access to market research and you need to have access to other talented people."

That's why Paris believes Eastern Consolidated has expanded, despite the doom and gloom. Over the past few months the firm has hired a chief economist and a real estate attorney, among others. She said brokers are looking for firms that offer those support services; brokers are looking for more foresight into an increasingly challenging market and they want to work at a brokerage with the staff and resources to provide that.

It's the smaller firms that do not offer in-house market analysis, economists and attorneys that may not be around after the recession, she said.

And Eastern Consolidated isn't the only firm offering the full services that are becoming attractive to today's brokers. Marcus & Millichap has recruited a plethora of talent throughout the downturn: Adelaide Polsinelli joined the group from Besen & Associates; Marco Lala, transitioned from Massey Knakal; Arthur Zuckerman came from Helmsley Spear; and, most recently, Marcus & Millichap hired Mack Tham as an investment specialist in Brooklyn, after serving as director of sales at Massey Knakal.

Edward Jordan, regional manager and East Coast director of Marcus & Millichap's Net Leased Properties Group, attributes much of the movement to a shift in strategy. "There was a certain mentality in the real estate investment market over the past five years--and I'd call it a trader mentality," he said.

What Jordan means is that the real estate industry becomes too transaction focused when the market is strong; volume is the priority while relationship building takes a back seat. He believes now that speculators and highly leveraged traders are no longer participating in the market, brokers are left with just owners and investor activity and need to return to an emphasis on a relationship-driven mentality.

Brokers are also looking long-term when making the move. Because of a bleak 2009 outlook and an uncertain 2010 forecast, brokers are seeking situations that will enable them to craft a greater pool of contacts. And they're going to have to, said Jordan, as a transaction-driven mentality isn't likely to yield much prosperity in such a tough economy. Brokers are looking to cultivate relationships now, in order to position themselves for success two years out.

And firms like Marcus & Millichap are ready to reap the benefits of that mentality shift.

"It's been a steady stream of brokers from other firms who believe there is a better way of doing things," Jordan said. "If history is any indication, we'll come out of this with more market share, more clients and better brokers."