Raphael Brault officially succeeded Fabrice Allouche as CEO France of CBRE on Jan. 1. He talks to Business Immo about this big leap, not without mentioning his ambitions for the group.
Business Immo: Why join CBRE France at this point in your career?
Raphael Brault: For me, it's an opportunity to approach the real estate industry from a third angle, that of consultancy, following experience in investment banking [at Morgan Stanley] and as a third-party asset manager, first in debt [with Sienna,] then in equity and debt [at AEW.]
In the current context, punctuated by transforming movements and ongoing changes, we are eagerly awaited. What's more, we're at the heart of a cycle that has created a great deal of disruption and volatility, leading to value adjustments and strategic reflections.
Approaching the industry from a consultancy angle, to provide information and, if possible, innovation, as well as conviction, to players who are questioning their allocations, among other things, is an idea that has quickly caught on, as a way of being at the heart of strategic thinking. In my opinion, the timing was right, given the likelihood of a cycle restart — after four years of bearish cycles, let's hope we've finally reached a plateau — even if it will take some time.
So you're going to have another experience...
I had the feeling that I had navigated well in the third-party asset management segment, an environment that is both exciting and fraught with a certain heaviness linked to regulations that are increasingly complicated to read, with sometimes contradictory signals. The advisory professions are extremely attractive; they are at the heart of an industry that enjoys greater freedom of expression than the regulated third-party asset management industry.
In this context, I'll have to anticipate customer expectations; I used to be one, so perhaps my mission will be made easier...
Did you aspire to this advisory role when you were an investor?
I was never taught to look into my neighbor's plate, so I'm not envious (laughs). Advisors are both players and 360-degree observers — they have a complete view of the market — and that's absolutely fascinating. You're in contact with all the players, all the pockets of capital, all the strategies and so on. They are at the confluence of all the information, and it's up to them to pass it on to customers so that they make the right choice.
So I wanted to see something different, to get back on the learning curve, to meet very different players in a world of salespeople, with a very different approach to real estate.
Will you be discovering new areas of activity?
If I'm completely honest, up until now I've been far removed from the business of advising users, tenant rep and supporting large corporates in their real estate strategy. It's up to me to get to grips with the nuts and bolts of this business very quickly.
The brokerage market is suffering from the upheavals of an ailing real estate market. What are you going to do to breathe new life into the market?
We're about to embark on a new, more exciting phase of the cycle, after the almost four years of adjustment we've just been through. A recovery is both hoped for and desirable, even if it's likely to be very gradual. After that, we need to reinvent ourselves. I say this without any pretension: if CBRE has gone looking for profiles that are a little out of the ordinary - as is the case in the UK and France — it's probably to bring a different perspective and bring the group closer to its customers.
So, how do you go about bringing that famous breath of fresh air?
When you arrive in a new company, you have a sense of astonishment, which is logical. You ask yourself questions about established patterns: this is true in terms of the approach to customers, the way we support them, but also in terms of internal organization. So we need to look at the maturity of organizations and markets, and find the right positioning.
This new lease of life, or rather dynamism, will undoubtedly involve adapting our organization to new competition, which has come to take market share. We'll need to regain our attractiveness in order to attract talent and remain differentiated in terms of services. Over the years, CBRE has built up the capacity to support its customers across the entire value chain; being a one-stop-shop, having an international vision, is a trademark that we must maintain.
When will we see the "paw" of Raphael Brault at CBRE France?
I don't claim to have a particular style, except that I believe in hard work. I believe in the values of probity, exemplarity and listening. I believe we have a collective responsibility. Together, we're going to find solutions. It's already quite present at CBRE. There's a real energy here.
Has your roadmap already been drawn up?
It stems from the market and competitive environment. For the past three or four years, investors have been questioning their real estate allocation as part of their overall strategy. Rising interest rates reduced the enormous appeal of real estate. Today, we're back to a "classic" paradigm, in which real estate has regained its natural place: interest rates have stabilized, prices have aligned and investors have rebalanced their allocation. It's up to us to convince people that we're entering a relatively stable environment. That's part of my roadmap.
At the CBRE level, I want to demonstrate that we are in a position to provide them with the best possible advice. There's no doubt about that when it comes to valuation, marketing, users and investors. On the capital market side, we need to re-engage with customers, strengthen our teams and organize ourselves in such a way as to inspire confidence by continuing to win market share, despite the arrival of new players.
You say you want to "adapt the organization"...
It's always important for advisors to consider whether they should work on the basis of verticals, which are asset classes, or whether they should create cross-functional structures to share best practices and provide the best quality of service.
Is it difficult to succeed Fabrice Allouche?
It's obviously difficult. Fabrice has done an extraordinary job over the past 12 years. And I can say that as a customer observer. CBRE has been transformed, and Fabrice has embodied this company in an exemplary way, bringing it to life in a complicated and competitive market environment. Quite frankly, I'd like to pay tribute to his work.
Succeeding him is both a source of pride and quite a challenge. But I'm coming in with my own personality, with my own qualities I hope (smiles). I'm not going to try to copy him, I'm going to try to bring something different to the table, which will help to make it new and attractive.