Case Study - Holts Lunsford
I. Executive Summary: Holt Lunsford Commercial
The case study titled “Holt Lunsford Commercial” explains how Holt Lunsford is debating how to grow his Dallas-based commercial real estate services firm and how to advise a long-time client who is wondering whether to lease or buy an industrial warehouse. The case focuses on the highly competitive and increasingly institutionalized $50 billion real estate services industry, which encompasses property management, leasing, tenant representation, and other activities. What makes Lunsford's firm, The Holt Companies, special? The article explores what corporate strategy Lunsford should choose for his firm, and what recommendation he should make to his client.
Holt Lunsford Commercial provided property management, leasing, development, and other real-estate related services to owners and tenants of industrial buildings. By 2003, Lunsford was responsible for management or leasing of over 27 million feet of property, and it employed over 50 people.
Staton Tees, a wholesale T-shirt distribution business, had called Lunsford seeking a solution to its space needs. Staton’s lease of Welch Center, the 100,000 square-foot warehouse/office property that served as headquarters for Staton Tees, was due to expire at year’s end. Staton wanted to know if he should renew the lease or perhaps pursue other options, such as buying the property outright or even developing a build-to-suit facility. Lunsford had previously negotiated several lease on Staton’s behalf, but had yet to help Staton purchase or develop any facilities, so their lunch meeting could ultimately expand their business relationship.
Lunsford met Stanton, the T-shirt distributor, while working for Trammell Crow. The relationship started with the two men on opposite sides of the table, but soon developed into a close relationship enjoyed by both families. When Holt Lunsford Commercial first opened its doors, Staton asked Lunsford to handle tenant representation
The case study titled “Holt Lunsford Commercial” explains how Holt Lunsford is debating how to grow his Dallas-based commercial real estate services firm and how to advise a long-time client who is wondering whether to lease or buy an industrial warehouse. The case focuses on the highly competitive and increasingly institutionalized $50 billion real estate services industry, which encompasses property management, leasing, tenant representation, and other activities. What makes Lunsford's firm, The Holt Companies, special? The article explores what corporate strategy Lunsford should choose for his firm, and what recommendation he should make to his client.
Holt Lunsford Commercial provided property management, leasing, development, and other real-estate related services to owners and tenants of industrial buildings. By 2003, Lunsford was responsible for management or leasing of over 27 million feet of property, and it employed over 50 people.
Staton Tees, a wholesale T-shirt distribution business, had called Lunsford seeking a solution to its space needs. Staton’s lease of Welch Center, the 100,000 square-foot warehouse/office property that served as headquarters for Staton Tees, was due to expire at year’s end. Staton wanted to know if he should renew the lease or perhaps pursue other options, such as buying the property outright or even developing a build-to-suit facility. Lunsford had previously negotiated several lease on Staton’s behalf, but had yet to help Staton purchase or develop any facilities, so their lunch meeting could ultimately expand their business relationship.
Lunsford met Stanton, the T-shirt distributor, while working for Trammell Crow. The relationship started with the two men on opposite sides of the table, but soon developed into a close relationship enjoyed by both families. When Holt Lunsford Commercial first opened its doors, Staton asked Lunsford to handle tenant representation