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In the face of slow home sales, brokers are employing a range of strategies to generate new revenue streams. For Rory S. Coakley, diversification is at the heart of the Washington, D.C.–area brokerage he founded with his wife Nancy more than 36 years ago. Serving residential and commercial clients has enabled Coakley Realty to remain resilient through market challenges.
What does diversification look like in your company?
Coakley Realty is structured as a one-stop shop, able to provide various real estate services to our clients including residential, commercial, appraisals, tax appeals, and litigation support. Not having all our eggs in one basket provides stability. If residential sales are slow, we could be doing more tax appeals and commercial real estate. There’s never what I’ll call equilibrium. The pendulum keeps swinging.
The first six months of 2024 were rough, with the supply of homes very low, but things picked up in the last six months. Meanwhile, our property management company, Coakley Realty Management LLC, provides steady, recurring income. We manage a diverse range of properties, including residential, commercial, industrial, retail and nonprofit.
For the agents, it provides more opportunities to earn income. People who lease things also sell things and sometimes require management of their assets.
To me it’s logical that you would do multiple activities within the same industry, and one of the main benefits of it is that the services we offer are complimentary. We can manage, lease, appraise and appeal taxes for one owner—and we can sell them a house.
We were recently asked by an accountant I’ve known for years to appraise some properties that were part of an estate. Not long afterwards, the owner of the buildings called and asked me, “Do you manage properties?” Long story short, we secured a property management agreement on 45,000 square feet of industrial space right in our backyard.
What advice would you give to a broker looking to branch into a new line of business—or an agent who wants to start a brokerage?
Although I would caution a residential broker with no commercial experience about trying to represent a commercial client on a lease or sale, a lot of the processes are similar. You meet with the client, you find the client’s needs, and you go to the data source that can help you fulfill those needs. Brokers who want to expand their services should get the necessary education and make sure they have access to the right data—or they might seek out a commercial broker who would like to start a division within their company.
For anyone seeking to start or expand a business, start out with a very strong business plan, and review and update it annually. I also have used third-party consultants to help me avoid blind spots. They’ll ask a lot of questions you might not think about. And they bring an outside, objective opinion—and experience in what works and what doesn’t work.
You started out in a different family business, Coakley & Williams Inc. What’s the relationship?
My father, Neil Coakley, started that business with Fred Willams in 1961. I grew up working in the business—painting railings, digging holes, and carrying cinder blocks—and eventually worked my way up to research analyst, director of acquisitions, vice president of development, and finally director of construction business development.
Eventually, it was my desire to create a business that was our own, and so we started the brokerage. I can still remember talking with my dad about it. He was a bit disappointed, but in the end, he and my mom were our greatest supporters.
My brother and brother-in-law ended up buying the construction arm of the company (now called Coakley & Williams Construction). They just recently turned over the reins to their employees. Fred Williams’ son bought a hotel management division. And the commercial leasing and property management division was bought by Donahoe, a large independent here in D.C. Another brother went to that company in the mid-1990s, and he’s still there.
So, we all stayed in real estate, and we still have great relationships. The connections I made at C&W continue to generate business. For example, in 1988, we built two warehouses for a gentleman. When I started my company the following year, the owner needed to get those buildings leased. We handled that work as well as tax appeals on his buildings, his house, and a gas station he owns. Now, my son is doing his leasing and management.
Doing tax appeals seems a bit novel for a real estate brokerage.
We’re also appraisers, and the fact that we’re in the field and know the properties is a big plus. In one recent appeal, an assessor presented three comps to support his value. I was able to point out, “I was inside the first property two weeks ago. The second property, we appraised six months ago. The third property I sold two years ago.”
And because I have connections in residential and commercial real estate, I’m not dependent on the information that’s available in CoStar or the MLS. Of course, we use CoStar and LoopNet for our commercial business—and we use the MLS. But, as real estate professionals, we can also get information from the street.
How did you establish a strong foothold in property management?
Due to our extensive residential and commercial leasing activities, we were seeing opportunities in property management. We had been doing real estate tax appeals for Jim Dailey, who owned an HOA management company. He had back-of-house experience, a CPA and an MBA. I had more front-of-the-house experience—business development and marketing. It made sense for us to team up and create a separate company, Coakley Realty Management LLC, so as not to comingle ownership of the brokerage. That was 1999.
Bringing two companies together isn’t always easy. What made the partnership work so well?
The three C’s—compromise, communication and compassion. Jim retired recently, and we had a buyout agreement. Our son, Rory P. Coakley, along with another member of our team, Meghaan Lane, will now oversee the property management operation with an aim of deepening our footprint in the industrial market.
You hold a bachelor’s degree in finance from Georgetown University and a master’s degree in real estate and urban development from American University. Was real estate always part of your grand plan, and what role has education play in your success?
I never considered a career outside of real estate. I was lucky enough to have smart parents who had the ability to send me to good schools. I also took six construction courses at Catholic University. And I am also a licensed broker and certified general appraiser in Maryland, Virginia and Washington, D.C., so there’s always continuing education.
Field experience is a great teacher, too. When I was in high school and college, I worked at construction sites. After graduating from college, I worked in land acquisition and then moved into development. I was involved in rezoning, hiring architects and engineers, getting permits, leasing and operations.
Can you name three factors that have contributed to your long-term success?
We’re a locally owned and operated family business, which appeals to a lot of small to medium-sized businesses. We have hands-on management, which provides continuity to our agents. And we have high employee and agent retention rates. Some have been here more than 20 or 30 years. If I need to leave town, I know the company is in good hands.
The other thing is I’m involved in the community, and I’m always networking. Just about everybody you meet needs real estate assistance. Nancy and I were at a happy hour last month, and we struck up a conversation with someone. I told him I was in real estate, and he said, “I may need your services.” It turns out he’s moving from the neighborhood where I grew up to the neighborhood where I live now. To buy a property subject to selling your house is a nonstarter these days, so he’s looking for a bridge loan. Well, guess what? I just had a lender come in to give a presentation to our agents on bridge loans. So, I was able to provide information on a bridge-loan product.
That conversation is still ongoing. I’ll let you know how it turns out.
How is 2025 shaping up so far?
It should be better than 2024 with hopes of decreasing costs, inflation and interest rates. People have adjusted to these higher rates, and that may provide momentum in getting more homes on the market. Year-to-date in the DMV, the active residential listing supply is about 30% higher than the same time last year. Despite all the uncertainties in the market, we’ll continue to stick to our company motto, “Consider it done!”
