Chris Hagen (left), Ritchie Asset Management Co. chief executive officer and partner; and Mark Ritchie (right), the company’s partner and co-founder, talk outside the offices of Ritchie Commercial, a real estate firm located at 34 West Santa Clara Street in downtown San Jose on June 3, 2024.
SAN JOSE — A savvy real estate firm that has withstood the ups and downs of multiple economic cycles has hired an industry veteran to bolster its property management expertise as Bay Area leasing activity fades.
Ritchie Asset Management Co., a property manager with ties to San Jose-based real estate brokerage Ritchie Commercial, has hired Chris Hagen, a long-time executive with Swenson, a legendary Bay Area real estate and development firm.
“We have known Hagen for decades through our countless dealings with Swenson and share many of the same clients and friends in the Santa Clara Valley,” said Mark Ritchie, president of Ritchie Commercial.
Hagen was named president and chief executive officer of Ritchie Asset Management. Hagen also became a major shareholder and partner in the asset management firm.
The company aims to help an array of clients, including independent and smaller commercial property owners who tend to have a more local focus.
“Most of the national firms deal only with large institutionally owned assets,” Hagen said. “We help dozens of private families with all aspects of commercial real estate ownership and management.”
Some commercial real estate firms have begun to emphasize the management of existing properties as the leasing and transaction side of the industry starts to dwindle in a tough economy for the sector.
Ritchie Asset Management Co. handles the accounts of 52 properties that total more than 3 million square feet. The properties are primarily in Santa Clara County.
The leasing and transaction market was robust for several years before the outbreak of the coronavirus in early 2020.
Tech companies raced to buy land and campuses and lease huge amounts of office space because of all the workers they were hiring to meet fevered demand for products and services so people could work remotely or operate from home offices.
Even after the onset of the business lockdowns to combat the spread of the deadly bug, commercial real estate leasing and purchasing activity remained relatively sturdy.
Starting in early 2023, however, all of those dynamics vanished and the commercial property market eroded.
Tech companies began to slash Bay Area jobs by the hundreds, sometimes by the thousands.
Executives acknowledged that tech companies had gone overboard with their hiring during the lockdown period when distance work and remote education were all the rage.
Along with the layoffs, tech companies also shrank their corporate footprints and lost their respective appetites.
Huge chunks of office space were offered for sublease. Tech companies largely eschewed renting or buying more buildings and facilities.
Now, there’s a growing emphasis on property management and tending to the needs of existing office and retail tenants.
Hagen was brought on board at Ritchie Asset Management to take over the company’s reins from the retiring Chris Hygelund, who in 1988 teamed up with Ritchie to co-found the property management business.
“Property management accounts are more critical than ever as the industry navigates a general transaction slowdown post-COVID and in an environment of high interest rates,” Ritchie said. “It provides a more steady fee income for the business overall and brings in more lease renewal work.”
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