Last May, the Macklowe Auction at Sotheby’s Auction House garnered the highest price ever for an entire collection, setting a new benchmark with a cumulative $922.2 million. The May 16 live sale earned $246.1 million for the remaining 30 pieces from the holdings of Linda and Harry Macklowe, in addition to the $676.1 achieved in the November 2021 sale, making it the most valuable collection ever sold in auction history. Charles F. Stewart, Sotheby’s Chief Executive Officer called it, “a landmark and historic event in the art market.”
The pioneering spirit of the Sotheby’s brand is embedded in its long and storied history, and the name has long been synonymous with white glove service and high-end luxury established by the world-renowned Auction House. Most people have heard the name Sotheby’s, and whether they associate it with the acclaimed auction house or the real estate company, many are curious about the connection between the two.
To understand Sotheby’s is to know its history, which spans 278 years, two World Wars, and global expansion. The company was the first international auction house to conduct sales in Hong Kong (1973), Russia (1988), India (1992) and France (2001), and the first to have a presence in China (2012).
Sotheby’s was originally founded in 1744 by Samuel Baker, a publisher and bookseller who created an auction house in his own name to sell his books. Ultimately, it became much larger. For more than a century, he and his successors auctioned great libraries to be sold at auction and eventually expanded into arts and other fine goods.
“Today, the Sotheby’s International Realty brand benefits from the rich 278-year history of Sotheby’s auction house, building on its legacy by delivering unrivaled real estate services,” says Lauren Muehlethaler, Vice President, Affiliate Services Central Region, Sotheby’s International Realty. “Worldwide name recognition and prestige provides instantaneous differentiation, brand awareness and an intangible emotional appeal with consumers.”
What’s the connection between the two? While the real estate company and auction house are separate entities, the brand recognition speaks to both sides of the business and is heavily utilized for marketing and cross promotional opportunities. “Our connection with Sotheby’s is truly one of our unique brand differentiators. As a preeminent real estate brokerage worldwide, brokerages affiliated with the Sotheby’s International Realty brand enjoy privileged access to market their listings to the Sotheby’s client database,” Muehlethaler says. “The properties represented by our network are exclusively featured in Sotheby’s marketing programs including high-profile client events, showcases in signature publications of Sotheby’s, in digital newsletters, and on Sothebys.com.” Like the Auction House, Sotheby’s International Realty has also seen record sales. In 2021, Sotheby’s International Realty announced that its global network achieved a record $204 billion in global sales volume, a 36% increase in sales growth year over year.
Sotheby’s International Realty enjoys privileged access to market their listings to the Sotheby’s Auction House client database, and an alliance of marketing efforts presents properties to clientele of the Auction House. In addition, an Auction Relations Manager helps facilitate Realty to Auction referrals and vice versa and complimentary behind-the-scenes tours of Sotheby’s are available for sales associates and clients. Ultimately, the Sotheby’s brand is synonymous with high-end luxury. “We offer an outstanding alliance of marketing efforts that present our properties to clientele of the Auction House,” says Muehlethaler.
In addition to the famous brick-and-mortar Auction House headquarters in NYC, there are Sotheby’s galleries in the luxury markets throughout the world including Paris, Aspen, East Hampton, Monaco, Palm Beach and Brussels. And of course, Sotheby’s has an online luxury emporium with all access to customers who would like to take advantage of the “Buy Now” function and purchase luxury goods from all around the world.
On top of the fine art, antiques, jewelry, wine, and cars auctioned to high-net-worth individuals, Sotheby’s recently added exclusive properties as an auction category via Sotheby’s Concierge Auctions to help Sotheby’s International Realty agents and their clients better understand the benefit of auctions, especially for listings that have time constraints.
With recent record sales in both real estate and fine arts, Sotheby’s legacy is still rooted in the same pioneering spirit that defined the brand throughout its history. It was the first auction house to set sail across the Atlantic and open in America in 1955, and the first to hold auctions in Asia in 1973. Sotheby’s pioneered the format of the evening sale auction in 1958 that is now the mainstay of the art market. It was the first to use satellite transmission to allow for simultaneous bidding in NYC and London, pre-internet. It was the first to sell a work of art for more than $100 million in 2004 and has been a pioneer in e-commerce. Sotheby’s track record of innovation goes all the way back to Sam Baker. “The Sotheby’s brand speaks to the integrity, authenticity, and heritage of a remarkable brand,” Muehlethaler says. “Having the trusted legacy brand behind Sotheby’s International Realty shows our clients that we have the expertise and connections to get the deal done.”