The commercial real estate industry has always been driven by relationships, but behind every successful deal is a significant amount of time spent on analysis, documentation, and communication. Brokers regularly review offering memorandums, analyze leases, draft LOIs, research comps, and prepare client updates. In many cases, this can take three to four hours per deal just on preparation.
That is beginning to change.
Read MoreIt is widely known and understood that the value of a Single Tenant Net Lease (“STNL”) property is closely tied to the lease. In fact, many opponents of STNL properties tell clients that the value of a property declines as the lease term shortens. Although not entirely correct, it does bear some truth (the CAP Rate of the property goes up with shorter lease terms, but many times this is offset with the rental increases built into the lease). What they don’t tell you, is that by utilizing strong real estate fundamentals and repositioning the lease, they can actually increase the value of the property dramatically.
Read MoreThere’s a major distinction between being “the broker who handled our lease” and being “the advisor we call before we make any real estate decision.” If you want recurring business, referrals, and multi-year client relationships, the objective cannot simply be closing deals. It must be becoming indispensable.
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