The firm is reportedly in reassessment mode, amid the coronavirus pandemic.
An Agency rep confirmed to The Real Deal that the firm moved out of its office at N. Palm Canyon Drive, in June. Staff and agents needing space were redirected to to an office in Palm Desert.
Palm Springs, a desert community in Riverside County approximately 100 miles east of L.A., has an overall median home price of $431k according to Redfin, but has a longstanding population of luxury clientele. L.A. County homes sit at an average price of $655K.
The Bravo reality series touched on The Agency’s skyrocketing success over the last few years, and CEO, Mauricio Umansky and his reality star wife never missed an opportunity to promote the family business. The Agency’s expansion into Palm Springs from the Beverly Hills headquarters was in response to a three year growth spurt.
Mauricio Umansky revealed in an interview last month that the brokerage, which boasts 36 offices, is currently reassessing its need for physical space.
“A lot of agents are talking to me – ‘Why not get rid of space?’ That’s what the agents are telling us. We have some rent commitments. But let’s see what’s happening six months from now, nine months now,” Umansky explained.
Mauricio Umansky said that he shifted into crisis mode after the Covid shelter-in-place orders were issued. He was able to negotiate deferrals on rent commitments with some landlords, and cut back on office space in the Pacific Palisades.
The firm received a $2-$5 million Paycheck Protection Program loan in April to save 104 jobs, according to info released Monday by the federal Small Business Administration.
The Agency was forced to lay off workers, despite the government boost.
“We have to lay off people and furlough people,” Mauricio Umansky admitted while declining to give details. “It was one of the most difficult things I’ve ever gone through in my life.”
As reported, Mauricio Umansky’s real estate firm, The Agency recently experienced a mass exodus with 45 top-ranking executives jumping ship from Kyle Richards’ husband’s company amid the company’s $32 million legal battle. Former and current brokers cite unethical and shady business practices for their departures.
In 2018-2019, numerous top-ranking Agency employees quit and joined competitor, Hilton & Hyland, which is owned by Mauricio Umansky’s brother-in-law and enemy, Rick Hilton.
The Real Housewives of Beverly Hills airs on Wednesday nights at 9:00 p.m. ET, on Bravo.