“Loopnet: Where Deals Go To Die.”

“Loopnet: Where Deals Go To Die.”

On the road and on the road some more.

And oh, the conversations I get to have.

I sometimes wonder if it’s because of my style of writing and obvious disdain for the pathetic norm that opens people up when they talk to me.

I do think that some are guarded because they think it will end up on this site for thousands and thousands to read.

If you think back when has something negative like that happened?

Why would I not encourage openness and frank helpful conversation?

Getting to the point.

I have been in many conversations lately about “the market.”

When I say the market, I am referring to a local market by definition.

It could be Chicago, Nashville or LA for that matter but regardless of the city it’s always “the local market.”

The effect that technology may or may not be having on a specific market is always a topic.

The amount of inventory and the pace of the absorption is another.

And of course, the market rates.

But lately another topic has been dominating the conversation and that is “off-market deals.”

I have even heard the off-market deals described as “the actual market.”

Or to quote someone anonymously “Off market is the market.”

We all know there is what most people call the gray market.

The gray market is data and deals that most people know exist but is not part of the market until it has a relevant piece of data that influences that market in some way.

Scenario 1:

Broker A has a long term relationship with building owner B. Out of nowhere the owner decides to push a spectacular asset. Broker A makes two quick calls and finds out it’s hotter than he thought. He makes three more calls and now has four hot prospects. He fields three quick verbals and tells the owner he made get a deal on paper and the number they wanted and then some with a short cycle to close.

Now I ask you.

Is that deal on or off the market?

What makes it a “market property?”

Scenario 2:

Broker A has a long term relationship with building owner C. They have been working together to market a property that just will not get any solid prospects no matter what strategy they use. Broker A has shopped this asset to everyone in his and his firm’s database, at least, three different times. He has tried all kinds of combinations of pricing and asset valuation models to try and create a fit that will justify the asking number for the asset. To no avail. Broadcast emails, IDX and CRMLS positioning to get more eyeballs and interest. Flyers, social internet selling and flat out cold calls. But nothing is working.

Now I ask you.

Is that deal on or off the market?

What makes it a “market property?”

The market has responded to both scenarios above.

What is the actual market?

Is the actual marketing of a property to the entire available market creating “the real market” even though the asset has shown it has not matched the definition of market value?

Is it that cut and dried?

So why the title ” Loopnet: Where Deals Go To Die.”

That is not my quote. I said it did not come from me.

It came from a broker in one of the top ten markets in the US.

His position was that if you do your job and do it well, you will never get to the phase of marketing that will require you to post the asset on Loopnet.

His definition of the market did not include LoopNet in any way shape or form.

It is not the real market.

It’s just……

“Loopnet: Where Deals Go To Die.”

 

+1 Ironically, I had lunch with the original founder of Loopnet last week. What a great, helpful and inspirational guy!

 

 

 

 

 

 

 

Duke Long

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