Friday, March 30, 2018

The VALUE of a Great Network - 4 Examples

Image Attribution: www.karinahogan.com.au
Recently - in this space - I opined as to the reasons to hire a commercial real estate broker to guide your building search or your disposition of a parcel of commercial real estate. Number one on the list was the value of a commercial real estate broker's network.

Today, I want to discuss this reason a bit more in depth - the VALUE of a great commercial real estate network.

We all understand how contacts in the field of construction, architecture, title, escrow, and lending are important to the success of a transaction - they all play an integral role - and in some cases a deal can't happen without their function. However, the true value of a great network reveals itself when there is a problem that must be solved in order to advance a sale.

Indulge me while I recant a few recent examples.

Fire sprinkler consultant. The height with which goods are stacked in a warehouse is governed by fire codes - the more flammable the commodity, the shorter the stack - unless an upgraded sprinkler system is employed. As a potential occupant of an industrial warehouse, it's incumbent upon you to make sure you can store your goods at an acceptable height. After all, you pay for the floor area of a building - not the cube space. Floor area efficiency by racking to the rafters. Therefore, a stacking analysis is the role a fire sprinkler consultant.

A land use attorney. Last year we sold a building adjacent to a sister building. Both were owned and occupied by the same owner occupant. Desired was to sell one of the sisters but continue to occupy both. Problem was, the owner had installed solar panels - that powered one of the buildings - on both parcels. Consequently, we required an easement be drawn outlining the area in question. Enter our land use attorney who was familiar with the process and drafted the easement.

A specialty building. Occasionally, I am asked to market a specialty building - a restaurant, a church, a school - or to assist such an operation find a suitable location. My network includes several individuals whose focus is the specialty building - a church, restaurant, or school. One of my contacts in Los Angeles only sells restaurant properties and assists restaurants in their search for space. A very easy hand off occurs when I can face a client - and with certainty - tout my contact's expertise.

A project manager. Moving a complex manufacturing operation is a task. Frequently, the occupant is best served hiring a project manager to execute the move. Generally, project managers offer their services akin to a menu - you can choose one of more services ranging from the planning and implementation of the move to installing your computers to assisting with permitting your tenant improvements.