Commercial Real Estate (CRE) transactions range from the fairly simple to immensely complex! The degree of transaction complexity can be mitigated by an educated and understanding commercial real estate broker who has expertise in your type of transaction and the resume to prove it.
A broker’s education and experience on specific sides of the transaction make he/she more understanding and knowledgeable of the other side’s needs. If you’re a commercial real estate landlord, you should seek out the expertise of a broker / agent with a significant amount of Landlord Rep. experience as the needs for a landlord typically differ from those of a tenant. It would also be beneficial to you if that broker/agent also has tenant representation experience, so they understand what typical expectations are from small business tenants to corporate tenants, etc.
Every one of us is a broker. That is to say, we’re all using someone else’s money. Whether you’re a baby-faced runner at CBRE or quarterbacking a big-time pension fund, you’re still a broker—you need to sell your deal to somebody, whether to a mom & pop investor or a bored investment committee. It’s not your money and, for that matter, it’s usually not theirs. The only true principals in real estate may be the millions of 401K retirees who are the capital behind every major player in the industry. Even the old rich guys still in the game are using some else’s money; in their case, it’s their kids’.
Commercial brokerage is a bit like bull-riding. Only a handful of agents, the best, last much beyond their twenties, the vast majority unable to deal with the pressure of having their cash flow meter reset to zero every January 1st.
To fully understand and thrive in commercial real estate one has to understand much more than the simple “bricks and mortar” that make up a building. A successful commercial real estate broker (developer, investor, or lender) wears many hats and should have knowledge across a variety of different industries and disciplines.
Contributing Author: William F. “Felton” McLaughlin, CCIM, SIOR
When it comes time to sell a commercial property that sits in a challenged location, the first course of action for a seller and/or the listing broker should not be to wonder about the size of the discount that should be placed on the valuation of the property. Rather, focus your efforts on all characteristics of the property that are either unique or offer some sort of competitive advantage. If you can identify how these unique features benefit the user, you can market the challenging property more effectively.
As the recent sale of a veterinary medical office building will show, we discovered some unique property attributes that helped the seller achieve a sale price close to the asking price.
As we kick off a new year, we are always looking for ways to improve our brokerage services and provide the best possible experience for our clients. In 2019, we will be focusing on numerous things to continue being the best commercial real estate brokerage we can be. Setting guidelines and goals can help balance your calendar, while increasing your success and happiness throughout the year.
As a commercial real estate (CRE) broker or salesperson, you may operate as part of a group, however, you are also an independent contractor, and in many ways, operating your own business. This means you should be developing a marketing strategy of your own, in conjunction with your firm’s marketing plan, to help you grow your personal brand, get more listings, and become a leader in your market and/or area of specialization.
There are many great tools available to help business owners leverage technology, and this is equally true for marketing yourself, growing your brand, and measuring your efforts.
Here are some tools you might want to consider adding to your toolkit.
Congratulations, you successfully signed up a new listing, now you have to perform and sell the listing. If you are looking to perform quickly, to the best of your abilities, and acting in the best interest of your client you should be open to cooperating with other brokers. This can have some drawbacks, as brokers have overlapping clients, but overall the more people working on a listing the greater the chances the deal turns into a transaction and closes. Also, half of a commission is better than no commission. In today’s market buyers are coming from all over the place, not just other states but outside the country as well. In order to reach more buyers and increase leverage as a seller’s agent you have to reach a large audience and create buyer demand.
An enormous amount of concern goes into the decision to purchase and renovate multi-unit property and therefore becoming a landlord. Additionally, providing pro-active property management and the necessity of being on call can affect all aspects of life yet the rewards of creating quality housing while realizing a generous financial return can provide quite a benefit offsetting these demands.
Looking at current affairs in commercial real estate (CRE), you will quickly note a lot of ink is being spilled over retail and its impending death. As a digital marketer and tech enthusiast, I am keenly interested in the conversation surrounding the state of retail. Daily headlines announcing the closure of various retail outlets and a never-ending barrage of articles on the growth of Amazon has probably convinced many that the death knell is indeed ringing for retail.
The process of buying commercial real estate (CRE) can be complex, long-winded and sometimes challenging, even if you are the only buyer negotiating to purchase a property. The complexity increases when multiple buyers seek to purchase a property at or about the same time. While simultaneous multiple offers in CRE are rare, it will be helpful to keep the following tips and tools in mind if you find yourself in the middle of a potential bidding war.