When It’s Time to Build an Internal Real Estate Function (or Why You Might Not Need To)
By The Greenberg Group Insights Team
Every growing retailer faces a moment of truth: the point when managing real estate deals on a project-by-project basis stops working. That moment—the expansion tipping point—is when leaders start to ask whether it’s time to bring the real estate function in-house.
At The Greenberg Group, we’ve helped hundreds of retailers navigate that decision. Some discover they’re ready to build an internal capability. Others realize that partnering with an experienced external advisor gives them more agility, access, and cost control than a fixed internal team ever could. The key is understanding what problem you’re solving before you decide how to solve it.
Why Many Brands Want to Build In-House
For executives, the logic seems straightforward: as we open more stores, let’s bring real estate management closer to home. More visibility, faster response, better control.
But what begins as a quest for control can quickly become a drain on focus. A fully internal team requires systems, process maturity, and continuous deal flow to stay efficient. Without that, it becomes a cost center instead of a growth driver.
That’s why many growth-stage retailers—especially those in the 10–40 store range—get caught in the middle. They’re too big to manage by committee, but not big enough to justify the overhead of a permanent department.
The Hidden Costs of Going In-House
Before you hire that first in-house real estate lead, consider what it takes to support them:
- Data and tools. GIS systems, mobility analytics, and rent benchmarking aren’t cheap—or simple to interpret.
- Experience curve. A single internal hire can’t replicate decades of market relationships and landlord negotiation experience overnight.
- Scalability. Store growth isn’t linear. Some years you may open 10 units, others just two. A fixed team doesn’t flex easily.
- Opportunity cost. Every dollar invested in internal infrastructure is a dollar not spent on growth, marketing, or product.
Building an internal function only pays off when your volume, processes, and capital justify it. Until then, the smartest move is often to extend your reach through a specialized partner.
Why Outsourcing Still Makes Sense
Engaging a firm like The Greenberg Group offers the strategic advantages of an in-house team—without the limitations. Our model gives clients:
- Instant expertise. Decades of analytical, market, and negotiation experience from a team that’s seen every deal type and market cycle.
- Elastic capacity. Scale up or down based on deal flow without carrying fixed headcount.
- Decision clarity. A proven process for market analysis, site selection, and rent intelligence that aligns real estate to business goals.
- Trusted representation. The same accountability and brand understanding as an internal team, but with national reach and data-backed precision.
As one longtime client put it,
The Greenberg Group acts like our real estate department—just faster, smarter, and without the overhead.
The Hybrid Model: Best of Both Worlds
For many brands, the right answer isn’t binary. The ideal path is a hybrid model—retain internal oversight for strategy and approvals, while partnering externally for analytics, deal execution, and market intelligence.
This approach allows your leadership to stay focused on brand and operations, while experts handle the data, fieldwork, and negotiations that power expansion.
The Bottom Line
There’s no one-size-fits-all answer to the in-house question. What matters is cost efficiency, speed, and results. For most growth-stage retailers, those outcomes are still achieved faster through partnership than payroll.
At The Greenberg Group, we operate as your outsourced real estate department—bringing the systems, insights, and relationships that help your brand grow intelligently, profitably, and at your pace.
Considering building your own real estate team? Let’s explore whether a partnership model could give you more leverage, less overhead, and better results.
