Why do we make selling real estate so hard? – Orange County Register

My neighbor is constantly reminding me that my voice echoes well above his pay grade with commercial property owners.

It is certainly not my intention, but I take all comments on my letters seriously and try to transform myself into a more meaningful messenger.

Regardless of the size of a commercial property portfolio – an apartment building or a global inventory of distribution boxes with Amazon-like tenants – investing is easy! Why do we make it so difficult?

As you can see, every investment seeks a return. Period. Secure. You want the return to be commensurate with the risk. But after all the fancy terms like capitalization rates, internal rates of return, replacement cost, source of capital, exit strategy, lost spending, cash, leverage, etc., this is really what this is all about. I spend so much money and get so much back. Microphone drop.

Brokerage of commercial real estate is easy. Why do we make it so difficult for ourselves?

A real estate transaction – whether sale or lease – has two sides: owner and user. Now the resident may want to lease or own and the owner may want to sell or lease, but you have the idea. Enter our agency and you now understand what we are doing. We are a kind of mediator.

An owner hires us to find a tenant or buyer to occupy his vacant building, or a resident gives us the opportunity to find a location to use it. The former assignment is referred to as listing, the latter as occupant representation.

If you ask me what I do and I answer: “I sell commercial real estate”. You might be wondering, “What the hell is commercial real estate?” Many of our customers are family-run production companies that are in a state of upheaval – for example when moving. This could give a better idea of ​​what is filling our days.

Networking is easy. Why do we make it so difficult for ourselves?

The real value of a commercial real estate professional lies in the depth of their network. Do you need a roofer? We’ll cover you. How about a lawyer signing a new LLC? Hold my beer, I have several. How about someone installing new storage racks? Yes. Just got the girl.

But all of these examples are “downstream” of the deal. By that I mean that the need is after or “downstream” of the sale or leasing. But what about “upstream”? Which professional groups see a transaction before it flies? The answer goes back to what we do.

Remember that many of our customers are family-run manufacturing companies that are going through a transition like moving house. If we focus on those professional service providers that complement our efforts, not compete, a treasure trove emerges.

Here is an example: Let’s assume that a manufacturing company is having a record year, but rents its building. During a regular meeting with their accountant, they discuss income and leasing. When the CPA advises his client to buy a building, the idea comes up.

Business is tough enough. Your real commercial advisor should make it easier for you.

Allen C. Buchanan, SIOR, is a Principal at Lee & Associates Commercial Real Estate Services, Orange. He can be reached at [email protected] or 714.564.7104.