REAL ESTATE : Commercial Broker Iliff, Thorn to Close County Operation

When Phoenix-based commercial real estate brokerage Iliff, Thorn & Co. opened offices in Orange and Irvine eight years ago, it brought an innovative philosophy to the area: Hire only the most experienced brokers around and keep them happy.

While its competitors generally hired lower-paid trainees, Iliff, Thorn became known for generous commission programs and plush office accommodations--frills that lured some of the best people away from top brokerages already established in the area.

A few years later the economy fizzled, and, like other Southern California brokerages, privately held Iliff, Thorn took a hard fall. In 1989, it folded its Orange office into its Irvine location. And this week, it announced plans to close its Orange County operations altogether on Oct. 31.

“Our cost per employee was higher than what other firms have,” said Thomas B. Gibson, regional manager and vice president. “With the lack of revenue resulting from the economic slump, we got caught in a situation where we couldn’t generate enough (money) to offset our expenses, even after cutting back on the expense side of the equation.”

Iliff, Thorn--founded in 1980--has seven other offices in California, Arizona and Colorado, all of which will remain open. Two or three brokers on staff in Irvine will relocate to the company’s Corona office, Gibson said.

“We made the decision (to close the Irvine office) for the benefit of the rest of the company,” Gibson said. “This is an isolated problem in regard to Irvine. Our other offices do not have the same overhead and are in marketplaces that aren’t as over-brokered as Orange County.”