Friday, January 12, 2018

Are YOU an Arbitrary Commercial Real Estate Owner?

Image Attribution: YouTube.com
Arbitrary. Defined as: "based on random choice or personal whim, rather than any reason or system. Or, unrestrained and autocratic in the use of authority." Also synonymous with capricious, whimsical, random, chance, or unpredictable. 

We encounter many owners of commercial real estate these days who have arbitrary expectations. Thus, I thought it would be fun - in Jeff Foxworthian fashion - to describe some of these characteristics as "you may be an arbitrary commercial real estate owner if..."

So, here goes!

You may be an arbitrary commercial real estate owner if you price your building at twice what the recent comps would suggest it's worth. 

You may be an arbitrary commercial real estate owner if you refuse to address necessary repairs that are highlighted in a building inspection.

You may be an arbitrary commercial real estate owner if your trusted advisor is a Ouija board - do they make those anymore?

You may be an arbitrary commercial real estate owner if you are offered a lease rate 30 percent higher than the latest lease deal - and you counter at an even higher rate. 

You may be an arbitrary commercial real estate owner if you believe you can always lower your price but you can't raise it. 

You may be an arbitrary commercial real estate owner if your market view is based upon cocktail party chatter. 

You may be an arbitrary commercial real estate owner if you are certain that second story, un-permitted office space is worth the same a ground floor office space. 

You may be an arbitrary commercial real estate owner if you are convinced a digital presence is a gift from Amazon.com.

You may be an arbitrary commercial real estate owner if  you shun an offer below your asking price by saying - "he's just not seeing the value!"

OK. You get the idea. Thanks for playing along and having some fun with this. The arbitrary nature of owners these days stems from the seller's market in which we find ourselves deeply entrenched. When will the "worm turn"? Next year! Why, you may ask. I'm not certain - just being arbitrary. See there. It's works both ways.