“It’s All About Relationships In Commercial Real Estate.” That’s Bullshit!

“It’s All About Relationships In Commercial Real Estate.” That’s Bullshit!

Of course its starts with a phone conversation…….

Nurturing working on advancing quality relationships are what EVERYONE in commercial real estate agrees are the MOST important thing that anyone person or brand should be doing. PERIOD !

That’s complete BULLSHIT !

On the phone this week with a 33 year veteran of corporate real estate and the conversation went to relationships. His opinion and mine are that they are worthless. Why is that you ask? Simple.

The site the data and the bottom line are THE important factors. NOT the Broker or Brand!

I personally have witnessed this from both sides and flat out made bank each time.

The site selection basics: What everyone looks for.

1.Highway accessibility.

2.Labor costs.

3.Tax exemptions.

4.Occupancy or construction costs.

5.State and local incentives.

6.Corporate tax rate.

7.Availability of skilled labor.

8.Inbound/outbound shipping costs.

9.Energy availability and costs.

10.Availability of buildings.

The data for the site itself:

1.Price.

2.Size.

3.Demographic Information

4.Comparable Sales Volume.

The bottom line:

1.How many months of operation will it take to gain sales volume increase.

2.How many stores can be built in a specific area?

3.What number of stores need to be built in a single year to hit the foretasted sales number.

4. How will all three numbers effect our stock price.

Nowhere in the above required information is the broker or the brand representing the specific piece of real estate make one little bit of difference.

So maybe the broker is a nice guy and talks golf and picks up the tab. SO WHAT!

The site the data and the bottom line are what determines the deal.

Not The Relationship.

Why are you wasting time?

Maybe you should focus on a better way to present and represent your piece of property.

The decision maker does not care if you have a relationship or not.

So why do you?

Thoughts opinions and comments are always encouraged and appreciated.

 

Duke Long

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