Friday, October 12, 2018

Where is our BREAD Buttered?

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Today, I will share with you two of the ways I look at my business - the source of transactions and the reasons. Although not terribly scientific - these two metrics can recap where marketing time has been expended - source. And where future deals might lie - reasons. I’m only talking about deals we’ve completed - not our pipeline of future business. And as I’m fond of saying - if it happens once, it’s an exception, twice a trend, and three times an epidemic.

So far this year, our team has completed twenty-three transactions with an aggregate consideration of over $43,000,000. Projected for the balance of the year is an additional $10,000,000 in closed deals.

Sources of Closed business.
Prospecting. That knock on your door or that annoying mailer you receive is probably from me. Yes. I still prospect. Generally, our calling surrounds an initiative - a general trend we see and touches that result or to make neighbors aware of activity - a new availability or a recent sale. 1 deal.

Social media. Linked-in, Facebook, Twitter, and YouTube - are our team’s go-to media sources. We have found consistency, authenticity, and targeted content are the keys to generating visibility. 2 deals.

Sign calls. Folks still drive-around and call us - and we love it! 1 deal.

Referrals from brokers. Our single biggest source of business! These come in two forms - cooperation on a listing or an occupant requirement or a colleague requesting our involvement to secure an assignment. 7 deals.

Referrals from clients. If you do a good job - these follow. 2 deals.

Other referrals. Critical to our success is networking with those who talk to business owners yet don’t compete with our services. Our network is filled with CPAs, attorneys, insurance brokers, commercial bankers, and wealth advisors. 6 deals.

Repeat business. Probably the finest validation we receive - when that group calls you years after your deal - to do another deal. 6 deals.

Reasons folks are transacting.
Expansion. As you would expect in a robust economy - close to half our closed transactions were caused by the need for additional space. 10 deals.

Contraction. An emerging trend recently discussed was the utilization of a third party logistics provider. Achieved is the need for less space with minimal disruption to the operation. 2 deals.
Re-allocation of portfolio. Some would suggest we are close to the top. If not, we can see it from here. Consequently, several of our clients have “taken chips off the table” and sold some buildings. 3 deals.

Merger or aquisition. The “Brady Bunch” of business activity causes commercial real estate activity. Period. 2 deals.

Renewals. Many of our clients are disappointed to discover the deficit of available buildings. Worse, their owner understands choices are limited and jacks up their rent. Our involvement results in a win for both sides - vacancy and move avoided. 6 deals.

Allen C. Buchanan is a principal with Lee & Associates Commercial Real Estate Services. He can be reached at 714.564.7104 or abuchanan@lee-associates.com  his website is allencbuchanan.com