According to Brown Harris Stevens executive Bess Freedman, the entry of ventured-backed firm Compass into the market lit a fire beneath the city’s top brokerages in more ways than one.
Beyond competing for listings, the firm’s aggressive recruiting tactics led to a series of high-profile poachings. The defections brought noncompete agreements back into the conversation, as brokerage heads grappled with how to retain their top talent.
“They became more prevalent when Compass came on the scene,” Freedman told The Real Deal’s Hiten Samtani. “I think it made everybody wake up.”
Despite having a noncompete of her own, Freedman said that firms can’t force these agreements on brokers — and that noncompetes could “stifle” people and “create complacency.”
“I understand that we need to protect our assets, but the assets in real estate are the agents,” Freedman said.
To see the conversation in full, click here.
Produced by Alistair Gardiner and Kerry Barger. Interview conducted by Hiten Samtani.
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