Residential Roots, Commercial Reach: Creating Scale With A Strategic Merger

In the ever-evolving real estate industry, brokers are constantly weighing what’s next. Do we grow? Diversify? Double down on our niche? This past year, I found myself standing at a strategic crossroads, and I chose to leap.

On July 5, 2025, RedKey Realty Leaders, the company I founded in 2012, officially welcomed RE Source LLC, a respected boutique commercial real estate brokerage. With this move, we launched our commercial real estate division, welcomed seven top-tier commercial agents into the RedKey family and added a new office in St. Louis’ Carondelet neighborhood.

I’d like to share what I’ve learned during this journey: Not just the big picture, but the tangible takeaways that other brokers can apply as they consider what comes next in their own careers and brokerages.

Why we did it

For years, RedKey’s agents have fielded questions from clients looking to lease space for their small businesses, purchase buildings as investment properties, or expand their portfolios into commercial ventures. We built our reputation on relationship-driven residential service — but increasingly, we were seeing the need to extend that same RedKey experience to the commercial side.

But launching a commercial division from scratch would require time, training and trust. We had the vision, but we didn’t yet have the infrastructure.

Enter RE Source.

Jaymes Dearing, founder of RE Source, is someone I’ve admired for a long time. He built a boutique commercial shop with integrity, focus and deep market knowledge. When we began conversations about how we might align, it quickly became clear: This wasn’t just a good fit; it was the right next step.

Key takeaways for brokers considering a merger or expansion

1. Know your ‘why’ before you begin

The most important question I asked myself — and asked again throughout the process — was simple: Why do this? In fact, it’s what I ask myself when any real estate company or team merges with us.

Mergers can be tempting, especially when markets shift and growth becomes harder to come by organically. But the best moves are rooted in mission, not momentum. For us, the “why” was crystal clear: to serve our clients more fully and empower our agents to grow their careers into new arenas.

If your merger doesn’t enhance your client experience or improve life for your agents, pause, then rethink and refocus. 

2. Cultural fit is everything

One of RedKey’s strongest assets is our culture. We’ve been named a top workplace by the St. Louis Post-Dispatch for eight consecutive years — and that’s no accident. We intentionally nurture an environment of support, collaboration and entrepreneurial freedom. Merging with another firm meant protecting that culture fiercely.

I spent as much time evaluating personalities, philosophies and values as I did spreadsheets. Dearing and his team weren’t just commercial experts — they were a cultural match. They believed in independence, integrity and doing the right thing for clients, even when it’s hard. That alignment made all the difference.

Before you merge, ask: “Can our cultures coexist and thrive together, or will one eventually overpower the other?” Choose compatibility over convenience.

3. Train to empower, not just absorb

Merging with a commercial firm opened exciting new territory — but it also revealed a knowledge gap. Many of our residential agents were eager to learn about commercial transactions but didn’t know where to begin.

We decided early on that this would not just be a bolt-on division; it would be a fully integrated part of RedKey. That meant launching a dedicated training track for agents interested in commercial real estate, led by the RE Source professionals themselves. By investing in peer-to-peer education, we’re creating career pathways, not silos.

My advice to other brokers: Don’t assume integration will “just happen.” Make it a deliberate process. Structure training, encourage collaboration and ensure that new expertise flows across your organization, not just into one corner of it.

4. Look for symbiotic strengths

RedKey brings residential scale. RE Source brings commercial depth. Together, we’re better.

Too often, mergers are framed as takeovers. But the best outcomes happen when both parties bring something vital to the table. We didn’t just acquire a smaller firm; we amplified our offering with specialized knowledge, community relationships and a new geographic footprint.

Ask yourself: “What are we really gaining from this merger?” If the answer is just volume, it might not be enough. Seek out partnerships that diversify your business, deepen your expertise and extend your brand meaningfully.

5. Communicate like crazy

Transparency is everything in a merger.

From our first internal announcement to our joint press release, we’ve prioritized clear, honest communication with our agents and clients. People have questions about leadership, structure, branding and systems, and they deserve answers. We’ve hosted Q&As, sent regular updates and made time for one-on-one conversations.

Mergers are as much emotional as they are operational. If people don’t feel informed or heard, you’ll lose trust and momentum. Overcommunicate, listen well and be available.

What comes next

The merger with RE Source isn’t an end; it’s a beginning.

We’re just scratching the surface of what RedKey Commercial can become. Already, we’ve begun collaborating on mixed-use projects, investor portfolios and small business leases. We’re offering our agents dual-career paths in residential and commercial. We’re growing — intelligently, sustainably and with heart.

As the market continues to shift, I know many brokers are wondering what their next chapter might look like. Here’s my advice:

• Stay curious. Don’t assume your current model is the final one.
  
• Stay grounded. Make decisions that serve your people first.
  
• Stay brave. The best growth often comes with a little fear. Mergers aren’t for everyone, but if you find the right partner, with shared values and complementary strengths, the result can be transformational for your clients, your team and your career.

If you’re a broker who’s been toying with the idea of merging, expanding or diversifying your services, my advice is to start asking deeper questions. What do your clients really need? What would truly elevate your agents? What kind of legacy do you want to build?

Because in the end, the best decisions aren’t just about growth. They’re about purpose. And if you keep purpose at the center, everything else has a way of falling into place.