Much of my time is spent counseling family-owned and operated manufacturing and logistics providers.
My role is that of a trusted adviser but ironically, I’m not paid like other advisers such as CPAs and attorneys whose services are billed by the hour.
Commercial real estate professionals are paid by transactions. No deal, no paycheck. Many have asked why I have approached business this way for nearly four decades.
To me it’s simple. If I focus on the payday rather than the advice, I become a commodity. If a premium is placed on my counsel, a relationship is formed. I become less transactional and more oriented toward the long term.
Fortunately, some companies I encounter need to immediately lease or buy a location or find an occupant for a vacant one. But many times I’ll spend years working with a client before my brokerage services are employed.
So, what advice am I giving these days? Please indulge me as I share a few examples.
Watch the market
As discussed previously, since the halcyon days of 2021 and early 2022 — when space was being gobbled like a pizza on grad night — the leasing and selling pace has slowed.
There’s no better example than what’s occurring in Class A industrial offerings.
In 2021, any new construction brought to market was pre-leased before it was completed. Once the walls were tilted, the activity commenced. Once the roof was on, the lease was signed. Now, we have several concrete boxes waiting for occupants. Many more will follow this year.
Interesting is the activity in “less than Class A inventory.” Aging buildings suffering from substandard fire protection, compromised loading or ceiling heights that don’t allow for maximum stacking are finding favor because they’re 25% cheaper than their Class A cousins.
My advice: The fish are there, you just have to go a little deeper. Read: Lower asking rates.
How to combat rent increases
Tenants are choking on massive rent increases now and over the past three…
Read the full article here