New Douglas Elliman CEO Michael Liebowitz Charts Course Toward Profitability in 2025

New Douglas Elliman CEO Michael Liebowitz Charts Course Toward Profitability in 2025

As Michael Liebowitz steps into his role as Chairman and CEO of Douglas Elliman (NYSE: DOUG), he faces a whirlwind of challenges and opportunities. Tasked with steering the Miami-based residential real estate giant back to profitability, Liebowitz is drawing on decades of financial and risk management experience. In his first three weeks on the job, he's tackled strategic priorities, navigated legacy issues, and focused on building a resilient future for the company.

Douglas Elliman, a brokerage known for its stronghold in high-end markets across Florida, New York, Los Angeles, and Texas, has faced headwinds in recent years. Despite boasting nearly 7,000 agents, the company has not recorded a profitable year since 2021. In his vision for a new era, Liebowitz is focused on tightening operational efficiency, enhancing workplace culture, and exploring strategic acquisitions in related sectors.

A CEO Prepared by a Lifetime in Finance and Risk Management

Reflecting on his journey to Douglas Elliman, Liebowitz attributes his readiness to extensive experience in founding, buying, and selling businesses, as well as managing large brokerage operations. Before joining Douglas Elliman, he co-owned a real estate company with the brokerage and ran a substantial insurance brokerage that supported the real estate industry. This familiarity with real estate brokerage—and its accompanying challenges—equips him to guide Douglas Elliman through evolving industry dynamics.

"Our real estate operations are complemented by title insurance and property management divisions," says Liebowitz. “I see Douglas Elliman as more than a brokerage; we’re a multi-faceted company positioned to innovate and diversify, which is key to our future success.”

Leading Through Change with Confidence

The transition to CEO may have seemed sudden to outsiders, but for Liebowitz and the Douglas Elliman board, it was part of a well-planned succession process. "Our former CEO, Howard Lorber, and I had been discussing succession plans for a while. At 76, he understood the need for fresh leadership,” he explains. “I’ve been a CEO before and served on multiple boards, so I’m comfortable with this role. I have a clear strategy and a strong sense of where we’re heading.”

In an industry with high turnover, Liebowitz is focusing on instilling a culture that balances tradition with innovation, valuing both loyalty and adaptation to technological advances, particularly in artificial intelligence (AI). “The real estate landscape is shifting rapidly with AI and other technology advances. We want to stay ahead, helping our agents maximize their potential by providing innovative tools and systems," he says.

A Vision for a Culture-First, Innovation-Driven Brokerage

For Liebowitz, Douglas Elliman’s culture is a foundation to build on rather than overhaul. The company's long-standing, family-like culture stands out in an industry increasingly dominated by aggressive recruitment practices. “I’ve met hundreds of our agents over the past few weeks, and many have been with us for decades. That loyalty says something special about our culture,” he notes. “However, culture isn’t just about being nice at the water cooler; it’s also about fostering a winning mindset, embracing technology, and staying competitive.”

Strategic Acquisitions: Broadening Revenue Streams and Building Stability

To bring Douglas Elliman back to profitability, Liebowitz emphasizes diversification. In-house expertise will play a role, with a newly established mergers and acquisitions team actively scouting potential deals. Targeted acquisitions in areas like insurance, title services, and relocation offer Douglas Elliman the chance to expand services that complement the core brokerage business. "We're seeking acquisitions that will empower agents with additional tools to grow their business and generate steady earnings for us," Liebowitz says.

Key Strategies to Restore Profitability

The real estate market has been challenging for many brokerages, with high interest rates and reduced transaction volume straining revenues. However, Liebowitz is optimistic that 2025 could bring a market rebound. "With interest rates likely to decrease and election uncertainty behind us, we’re looking forward to 2025 as a year of renewed growth,” he says. Additionally, Liebowitz aims to streamline operating costs, not by cutting but by optimizing spending to achieve better returns.

The company is investing in back-office technology to drive efficiencies and ensure that every dollar spent yields measurable benefits. “We’re not cutting; we’re refining. It’s about making our investments work harder for us,” Liebowitz explains.

A Positive Outlook for South Florida Real Estate

South Florida’s housing market has seen a dip in sales in 2023, but Liebowitz is optimistic about future demand. "Lower interest rates will make home-buying more accessible, and post-election stability tends to boost confidence,” he says. "With favorable economic conditions, we’re hopeful that South Florida—and the broader market—will see increased activity in 2025."

Adapting to Industry-Wide Changes in Commission Structures

With recent class-action settlements reshaping commission structures, Liebowitz sees this as an opportunity to redefine agent expertise. "We’re going to be driven by data and analytics, equipping our agents to provide clients with detailed insights into market trends,” he says. “In the long run, focusing on client service and delivering high-quality advice will build trust—and earnings will follow."

Charting a Path to Profitability with a Renewed Vision

As Liebowitz charts a path forward, he envisions Douglas Elliman as a leaner, more adaptive company, equipped to handle the cyclical nature of the real estate market while maintaining a steady trajectory of growth. With a focus on innovation, strategic acquisitions, and a robust company culture, Douglas Elliman is poised to regain its footing and, perhaps, surpass past heights.

"Douglas Elliman is in a transformational moment, and I’m thrilled to be part of that journey," Liebowitz concludes. "We’re creating a company ready to face the challenges and capture the opportunities of the future."