Ted Zaharko is closing his Calgary-based Royal LePage Foothills brokerage, which had six offices and 163 sales reps. The agents are being transferred to Royal LePage Benchmark or Royal LePage Solutions. The Foothills Commercial Division will also move to Royal LePage Solutions.
Zaharko told the Calgary Herald that “it becomes increasingly apparent that in this current economic climate that a multi-branch organization like mine becomes difficult because the expenses have accelerated and revenue is dropping… Less cash coming in and we’re just a bit behind in our commissions payable to our Realtors. You see the writing on the wall…”
Royal LePage says in a statement that the economy “may have played a role in increasing stress over the past year on Royal LePage Foothills, but this situation is attributable to unique financial challenges for the owner of one brokerage firm.” It adds that the company’s brokerages across Alberta are “weathering the impacts of very low oil prices very well.”
The statement says that “consumers are not impacted by these changes as they are protected by trust accounts and real estate regulations in Alberta.”
The former Foothills Commercial team’s move to Royal LePage Solutions will cause no interruption in existing services, the company says.
Phil Soper, Royal LePage’s CEO, says, “These people have thrived in a very challenging market in the Calgary region by understanding that an economy in flux requires innovative approaches to managing commercial property needs. The merger of the former Royal LePage Foothills Commercial group with the professionals at Royal LePage Solutions creates our largest commercial brokerage team in Western Canada, a move that will allow us to continue to invest and grow in this very important Alberta market segment.”
