My wife
and I just returned from Louisville, Kentucky; the home of Muhammad Ali,
Jennifer Lawrence, Louisville Slugger bats, the Kentucky Derby at Churchill
Downs, the “hot brown” open-faced sandwich and lest I forget - bourbon whiskey
by the barrel full! You see, we attended the fall conference for the Society of
Industrial and Office Realtors (SIOR). This year’s soirée was held in
Louisville, Kentucky.
On
the agenda was a bit of sightseeing, touristing, networking and world-class
learning from the best and brightest in our industry.
So
today, you’re getting a two-fer. What the SIOR Global Conference and
Louisville, Kentucky can teach us about commercial real estate.
The
horses are at the post, so here goes.
SIOR
Lesson #1: Relationships Trump Algorithms. No matter how advanced our tools become - CRMs, AI-assisted
valuations, digital twins - the commercial real estate business is still a people
business. The SIOR conference reaffirmed this. Deals still get done because
of trust, credibility, and consistency. The speakers
hammered home that in an age where data is everywhere, clients choose advisors
who care, listen, and show up - not just those who can crunch numbers.
Louisville
Lesson #1: Southern Hospitality Sells. From the moment we landed, Louisville reminded me that how
you make someone feel often matters more than what you tell them.
Every server, Uber driver, and shop owner radiated warmth. That same principle
applies in real estate. Want to stand out in a crowded market? Treat every
client like a guest at your table. The courtesy you extend today becomes the
relationship you close tomorrow.
SIOR
Lesson #2: Adaptability Wins the Race. One panel discussed industrial data centers and their
voracious need for cooling water and gobs of megawatts. These large boxes
filled with many smaller boxes are not your data centers from the late 1990’s.
The take-home? You must understand the “power story” and how to effectively
tell it. The brokers and owners who thrive are those who evolve with the market
rather than fight it. The best in our business don’t just react to
disruption - they anticipate it.
Louisville
Lesson #2: Reinvention Is in the City’s DNA. Louisville was once known primarily for bourbon and baseball
bats. Today, it’s also a hub for logistics, tech startups, and healthcare
innovation. Old factories are now creative offices and distilleries have become
experiential brands. Sound familiar? It’s the same evolution our properties are
following. Reinvention keeps you relevant - whether you’re a city or a
commercial real estate professional.
SIOR
Lesson #3: Community Builds Credibility. The SIOR network is more than a collection of brokers -
it’s a community. We share referrals, best practices, and market insights
freely. In doing so, we elevate the profession. When one of us succeeds
honorably, all of us benefit. That’s a powerful reminder that collaboration
beats competition, especially in an era when clients expect local expertise
with global reach.
Louisville
Lesson #3: Pride of Place Matters. Louisville doesn’t try to be Nashville, Chicago, or
Dallas. It leans into what makes it Louisville: horse racing, bourbon,
history, and heart. The same applies to commercial real estate. Know your
market, celebrate its quirks, and champion its strengths. Whether you’re in
Pittsburgh, the Inland Empire of SoCal, or Manhattan , authenticity attracts business.
Final
Furlong: What It All Means
The
SIOR Fall Conference and the city that hosted it delivered the same message in
different accents:
Success
in commercial real estate - and in life - isn’t about chasing trends. It’s
about relationships, adaptability, community, and authenticity.
Louisville
may have been 2,000 miles away from our home in Orange County, but its lessons
fit perfectly here in Southern California. Because whether you’re selling
bourbon or buildings, the fundamentals remain the same: serve people well, stay
curious, and keep learning from every stop along the way.
I must
admit, I used to be a huge baseball fan. The crescendo of my fandom occurred in
2002 when the Angels prevailed over the Giants in the seventh game of the World
Series. I couldn’t imagine it ever being any better than that season, so my
interest waned. Last night, I found myself tuning in for the seventh game
climax and oh my goodness, what a game!
You
may be wondering what the seventh game of the World Series has to do with
commercial real estate. Indulge me for an inning or two while I explain.
1.
Never assume the game is over. In the Game 4 win vs. the Philadelphia Phillies, the
Dodgers prevailed 2-1 in 11 innings thanks to a bases-loaded, two-outs scenario
that turned on a misplay.
CRE
lesson: Deals may drag on, go to “extra innings,” or appear stalled. Staying
engaged, remaining ready and spotting the opportunity when it comes can make
the difference. Just because it looks like lapsed momentum doesn’t mean the
deal is dead.
2.
Deals like ballgames can turn on one swing. Last night, the Dodgers were down to their last outs until
an unlikely number two hitter launched a home run in the top of the
eleventh inning. Then in the bottom of the inning they held on by stranding a
runner on third with one out and turning a game-saving double play. Game over!
Dodgers win.
CRE
lesson: That’s commercial real estate in a nutshell. You don’t always win with
your cleanup hitter. Sometimes the surprise player steps up. And when pressure
mounts, execution and defense matter as much as offense.
3.
Keep depth and “bench strength” ready. In that win and others, the Dodgers relied on talent beyond
their starting pitchers and starting eight with role players stepping up.
CRE
lesson: Build a team and system so you have back-up options: alternative
properties, secondary brokers, backup financing, contingency plans. When the
“regulation innings” don’t finish the job, you’ll want your bench ready to step
in.
4.
Execution under pressure counts. The 11th inning is the “extra” inning with fatigue, stress,
and uncertainty all rising. The Dodgers executed.
CRE
lesson: As deals drag closer to closing - or during unforeseen disruptions
(zoning issue, financing hiccup, tenant pull-out) your ability to execute
calmly under pressure distinguishes you. Systematic processes, clear roles,
pre-planned checklists help you perform when others choke.
5.
Persistence builds culture.
The Dodgers’ repeated success in extra-innings, high-leveraged situations shows
a mindset and culture of fighting until the end.
CRE
lesson: Over the long term, cultivating a team/brand that refuses to give up,
that always follows through to finish strongly builds credibility. Your track
record in “extra innings” (long deals, tough markets) becomes a differentiator.
6.
Use the moment to build story and momentum. Such a dramatic win becomes part of the team’s narrative.
CRE
lesson: When you bring a deal over the finish line under challenging
conditions, tell it. Use the story to broadcast success, attract next clients,
build your reputation.
Every
commercial real estate deal has its ninth-inning moment, when the outcome can
shift with one good swing or a steady glove. The brokers who win are the ones
who keep believing, keep executing, and never let the pressure change their
approach.
One of our grandsons is active in the Cub Scout program. His
mom, our daughter, has found herself thrust into the role of outdoor activities
manager for the den. She asked if I wanted to tag along with our grandson and
her on a weekend camping trip to Oso Lake. I haven’t slept on the ground in
twenty years - but the weekend sounded fun - so I agreed to go.
My recollection of Oso Lake was during its private bass fishing
era. Apparently, it was leased to the Boy Scout program in around 2008 and it
has been converted to an overnight campground for Scouting of America.
You may be wondering, what an overnight Cub Scout camp out has
to do with commercial real estate. Only these things. Please indulge me as I
review a few.
Adaptive Reuse and Repositioning: The Oso Lake Model
My first thought upon arriving at the camp wasn't about tent
poles or s’mores, but about adaptive reuse and repositioning. Here was a
property - a former private fishing lake - that had changed its highest and
best use. For decades, it was a specialized recreational asset. Today, it's a
bustling youth campground.
In Southern California commercial real estate, this pivot is the
name of the game, especially with the shifts we've seen in office and retail.
Think of an older, vacant office park being converted into much-needed
multifamily housing or a sprawling aerospace campus repurposed into a warehouse
project. The physical location remains, but the function and therefore the
value driver completely change. Oso Lake proves that even a property with a
strong legacy can find a new life and a more vital role in the community by
adapting to a new demographic and market need.
Zoning and Entitlement: You Need the Right Permit for the
Campfire
We had specific rules about where we could set up our tent,
where the cars had to be parked, and even the type of fire we could build. No
rogue campfires allowed - you had to use the designated, permitted fire pit.
In commercial real estate, this translates directly to zoning
and entitlements. You can have the best vision for that old shopping center
(say, turning it into a mixed-use development with apartments and ground-floor
retail), but if the city's zoning code only allows retail, your project is dead
in the water - or facing years of costly, uncertain negotiations.
Just like a Scout leader needs the proper fire permit, a
developer needs the proper zoning and approvals to execute a project. Southern
California's local jurisdictions are all unique, and mastering those specific
rules is as critical as mastering the knot-tying merit badge.
Demand Drivers and Demographics: Who is Your Tenant (or Camper)?
Who is coming to Oso Lake now? It's not the exclusive
bass-fishing crowd; it’s families, Cub Scouts, and school groups. The Scouting
of America program understood the demographics of their users - families
looking for structured, safe, accessible outdoor experiences - and positioned
the property to meet that specific demand.
This is the very essence of understanding the market in our
region. Are you developing an industrial park? Your tenant demand is driven by
e-commerce, logistics, and supply chain efficiency. Are you building a new
Class A office building? Your tenant is driven by a desire to attract talent
with amenity-rich, highly-collaborative spaces.
Just like the Cub Scout program must cater to the needs of young
families, your commercial property must cater to the evolving needs of the
businesses and people who will occupy it.
The camping trip was a great reminder that success, whether in
the woods or in a boardroom, comes down to understanding the fundamentals:
adaptability, playing by the rules, and knowing your audience.
Now, if you'll excuse me, I need to go see if my grandson packed
out all his trash. That, too, is a lesson in good stewardship - a topic for
another column entirely.
Our
travels took us to Dallas, Texas for the last week of the State Fair of Texas -
the world’s largest state fair - I’m told. After all, everything is bigger…
Anytime
we travel, I always look for a lesson or two or at least a way to improve
brokering commercial real estate. This trip was no different, but maybe a bit
harder to ascertain.
So
maybe a look at how the Orange County Fair and State Fair of Texas differ would
be fun with a bit of commercial real estate mixed in. If you’re up for it, here
goes.
The
first thing that hits you at the Texas State Fair is the scale. It’s enormous.
Big Tex greets you from his perch above the fairgrounds, smiling down on acres
of exhibits, food stalls, and carnival rides. The Orange County Fair by
comparison feels more intimate, more navigable, and, well, more California
casual. Both are successful in their own way, but they serve different
audiences with different expectations.
Commercial
real estate is much the same. Some markets operate on a Texas scale - huge
industrial parks, massive logistics hubs, and sprawling development tracts.
Others, like Southern California, require creativity within tight boundaries.
We don’t always have more land to build on, so we learn to repurpose,
subdivide, and modernize. It’s the difference between having a wide-open canvas
and mastering the art of working inside the frame.
Another
noticeable difference is pace. At the Texas fair, people linger. They stroll,
talk, eat, and soak in the atmosphere. In Orange County, we move faster. We
come for an afternoon, check a few exhibits, maybe catch a concert, and then
we’re on to the next thing.
This
mirrors brokerage styles. In some regions, deals develop slowly through
long-term relationships and measured conversations. In others, the tempo is
brisk - speed, competition, and timing often determine who wins. The best
brokers, like fair organizers, understand their crowd. They adjust their rhythm
to match the market.
Then
there’s the food. At the State Fair of Texas, deep-fried creativity reigns
supreme. Fried butter. Fried bacon-wrapped hot dogs. Even fried cookie dough.
It’s indulgent, over the top, and delightfully unapologetic. At the Orange
County Fair, you’ll still find your share of fried temptations, but there’s
also a nod toward fresh, local, and organic.
This
difference in flavor has a lesson too. In brokerage, knowing your client’s
appetite is everything. Some crave big, bold moves - buying large portfolios,
chasing redevelopment plays, or taking on risk for the promise of reward.
Others prefer steady, predictable, and sustainable decisions. Our job is to
serve what satisfies, not just what’s trending on the midway.
I
also noticed something subtle but powerful at both fairs: community pride. The
Texas fairgrounds tell the story of the state - its agriculture, innovation,
and culture. The Orange County Fair showcases local artists, small businesses,
and family-owned farms. Both fairs remind their visitors that they’re part of
something larger.
Great
commercial real estate brokers do the same. We connect businesses to
communities, not just buildings to tenants. When a manufacturer expands, a
warehouse fills, or a property sells, we’re shaping the local economy. Every
transaction adds a thread to the fabric of the region we serve.
So
what can the State Fair of Texas teach us about commercial real estate?
That
size matters, but so does fit. That pace varies, but focus wins. That knowing
your audience - whether they want fried Oreos or fresh fruit - is the key to
satisfaction. And most importantly, that pride in place transforms transactions
into relationships.
As
Big Tex would say, “Howdy, folks!” Whether you’re buying, selling, or leasing,
make your next deal something to smile about.
Allen C. Buchanan,
SIOR, is a principal with Lee
& Associates Commercial Real Estate Services in Orange. He can be reached
at abuchanan@lee-associates.com or 714.564.7104. His website
is allencbuchanan.blogspot.com.
Our travels took us to Philadelphia, Pennsylvania
last week. No. Not for the pivotal Dodger vs Phillies series but for a stop on
my book tour and bit of work. Yes! We were able to sample a Philly cheesesteak
- alas a vegan one - and ascend the Rocky steps to city hall. We even attended
a musical in the same theatre Thomas Jefferson graced in 1807.
You may be wondering what a trip east can teach us about commercial
real estate? Indulge me while I review a few reasons.
Legacy matters. Walking the cobblestone streets of Old City, you are reminded
that history leaves an imprint on everything. The architecture tells a story of
adaptation and endurance. Buildings that once housed print shops or tanneries
now host tech startups, art galleries, and coffee roasters. The lesson? A
well-built structure can live many lives. In commercial real estate, we often
focus on the next deal, but Philadelphia reminds us that long-term vision and
sound fundamentals outlast the trends of the moment.
Density breeds creativity. Every block in the downtown core bursts with energy. Office
towers sit shoulder to shoulder with residential conversions and vibrant
street-level retail. It is a living example of how proximity drives
collaboration. In Southern California, where sprawl is our default, we can
learn from Philadelphia’s mixed-use fabric. The best projects today are those
that layer uses - industrial with office, retail with residential, community
with commerce. When people and ideas collide, opportunity follows.
Transit changes everything. Unlike most West Coast cities, Philadelphia was built for
pedestrians and trains, not cars. That simple difference shapes land use,
property value, and even tenant demand. Industrial users there still rely on
rail access. Office tenants value walkability. Neighborhood retailers thrive
because foot traffic never stops. The takeaway for us is clear: accessibility
sells. Whether through freeways, ports, or planned transit corridors, the ease
of connection defines the worth of location.
Pride of place builds value.
Philadelphians are proud of their city. You can feel it in every mural
and every conversation at the corner market. That civic pride translates into
investment, maintenance, and long-term ownership. As brokers and owners, we
know that when people believe in their community, properties stay leased and
values rise. A clean street, a cared-for façade, or a supportive business
district can elevate an area faster than any zoning change.
Reinvention is not a phase - it is a
way of life. From its colonial roots to its
modern skyline, Philadelphia has reinvented itself countless times. Industry
shifted. Populations moved. Yet the city continues to evolve, not resist. That
spirit of adaptation is exactly what today’s commercial real estate world
demands. Office conversions, e-commerce distribution, re-shored manufacturing -
all of it requires the same willingness to look at existing assets and ask,
“What could this become?”
So, what can the City of Brotherly Love teach us about commercial real
estate? That legacy, density, access, pride, and reinvention are not just urban
characteristics. They are timeless business principles. The best deals, like
the best cities, are those that continue to create value long after the ink
dries.
Allen C. Buchanan,
SIOR, is a principal with Lee
& Associates Commercial Real Estate Services in Orange. He can be reached
at abuchanan@lee-associates.com or 714.564.7104. His website
is allencbuchanan.blogspot.com.
Last weekend, I attended
my 50th high school reunion. It was a night filled with laughter, memories, and
the occasional moment of “Wait, who are you again?” Fifty years. That’s a long
time. My high school English composition teacher, Mrs. Beck, would be pleased
I’m still using complete sentences, correct punctuation and an occasional pun.
But I digress.
As I looked around the
room, I couldn’t help but notice how much this gathering had to say about the
business I’ve spent my life in: commercial real estate.
The Power of Relationships
A reunion is really a
relationship check-in. You see the people with whom you stayed in touch, and
you also rediscover connections that simply went dormant. Some classmates
reminded me of things we did decades ago that I had forgotten. It struck me
that commercial real estate works the same way. Relationships never really
expire. A client I helped in 1998 might call me today with a new need. When you
treat people right, time becomes an ally, not an obstacle.
Cycles and Constants
At the reunion venue, I
saw the full spectrum of change. Hairstyles, waistlines, and technology have
certainly evolved. Yet the essence of people remains constant. The same is true
of our business. Markets rise and fall. Interest rates climb and dip. Industrial
demand surges and softens. But the fundamentals never change. Location, supply
and demand, and integrity still matter more than anything else.
Adaptation Equals
Longevity
A few classmates had
completely reinvented themselves. They took risks, learned new skills, and
embraced change. Others had refused to evolve and seemed stuck in time. In real
estate, the difference between thriving and surviving often comes down to the same
thing. Those who adapt to new tools, new markets, and new client expectations
remain relevant. Those who don’t fade into memory.
Legacy Over Titles
No one at a 50th reunion
brags about their job title or income. The conversation turns to family,
friends, and impact. That perspective hit me deeply. In commercial real estate,
we can get consumed by the next deal or the next commission check. Yet, in the
end, our legacy is not measured by the size of our portfolio but by the
reputation we built and the people we helped along the way.
The Long Game Always Wins
Some of the strongest
friendships in that room began with small moments fifty years ago. The same is
true in brokerage. A quick conversation, a handwritten note, or an act of
service can echo decades later. The long game always rewards those who play it with
consistency and care.
Fifty years of shared
history reminded me that success in both life and commercial real estate is
about connection, character, and commitment. The deals come and go. The
relationships endure.
Allen C. Buchanan,
SIOR, is a principal with Lee
& Associates Commercial Real Estate Services in Orange. He can be reached
at abuchanan@lee-associates.com or 714.564.7104. His website
is allencbuchanan.blogspot.com.
M
any family-owned businesses face this reality at
some point: you decide to sell your company.
Congratulations! It’s the culmination of years,
maybe decades, of hard work. But if your business occupies real estate, whether
owned by a related entity or leased from a third party - there’s another big
question: what happens to the building?
The answer depends largely on whether your
company owns the property
through a related entity or simply leases space from an unrelated landlord. Each path requires a different
strategy.
Scenario One: Owned Real Estate
If your operating business occupies a building owned
by you or a related entity, several options emerge:
Sell the real estate before the business sale. You can sell the building to an owner - occupant and arrange to
vacate once the company transaction closes. This separates the real estate deal
from the business deal, providing clarity for all parties.
Lease the building to the buyer of the business. Instead of selling, you might keep the property and sign a lease
with the buyer of your company. This allows you (or your family entity) to
continue collecting rental income long after the business changes hands.
Formalize a lease before the sale of the business. Another option is to establish a lease between the related
entity (property owner) and the operating company before selling. This locks in occupancy terms, giving the buyer
certainty and making the business sale potentially more attractive.
Scenario Two: Leased Real Estate
If your company rents from an unrelated,
arm’s-length landlord, the conversation is different. In this case, the
business buyer will want to know:
• How much time is left on the lease?
• Are there options to renew or expand?
• Is the rental rate market-competitive?
A strong lease can be an asset to the sale, while an
expiring or above-market lease can become a liability. In many cases,
negotiating an extension or adjustment with the landlord before selling the
business can smooth the path for a transaction.
Why This Matters
Buyers aren’t just purchasing your business
operations - they’re buying continuity. If the real estate arrangement is
murky, the deal becomes more complicated. By addressing how the building fits
into the transaction, you eliminate uncertainty, increase buyer confidence, and
often enhance the overall value of the sale.
Final Thought
Selling a business is one of the biggest financial
and emotional decisions a family will ever make. Don’t let the real estate
piece become an afterthought. Whether you own or lease, work with advisors who
can help you consider all potential directions so you can move on to your next
chapter with peace of mind.
Allen C. Buchanan,
SIOR, is a principal with Lee
& Associates Commercial Real Estate Services in Orange. He can be reached
at abuchanan@lee-associates.com or 714.564.7104. His website
is allencbuchanan.blogspot.com.
