Deal “SEQUENCE”

In my over five decades of commercial real estate brokerage, I’ve transacted over 2000 times! Some have found me on the occupant side of the aisle and in others I’ve advocated for an owner with a vacant building. Rarely - but it happens - I’ve straddled the two factions ala Ben Hur. This is legal in our world and is known as “dual agency”. Candidly, I prefer the separation where two professionals are involved.
 
In considering the deal, I developed - with a little AI help - an acronym for for the steps taken in a commercial real estate transaction. I believed them to be column worthy - so here goes.
 
• S – Source - Developing opportunities before they exist.
This includes outbound efforts like mailers, marketing campaigns, social media content, tapping into inactive clients, direct-to-owner outreach, and any strategic activity that creates deal flow where there previously was none.

• E – Evaluate and identify a lead 
Through sourcing, a lead is uncovered. Whether it’s identifying an active tenant requirement or uncovering a property that fits a buyer’s criteria, this is the moment a generalized opportunity becomes a targeted pursuit.

• Q – Qualify - Determining if the lead is worth the pursuit.
This includes my 7-step QUALIFY framework: Quantitative Need, Urgency, Authority, Loyalty, Intent, Fuel, and Yearning—the litmus test for whether the lead has traction and potential.

• U – Under Control - Securing the right to act. Using an exclusive authorization to represent, listing agreements, or exclusive agency agreements, this step ensures you are no longer guessing—you’re executing under formal terms.

• E – Execute - Activating the plan.
Here, you’re touring buildings, sourcing off-market options, or locating buyers or tenants for vacant buildings. It’s about making the market work through active engagement, creative matchmaking, and transactional momentum.

• N – Negotiation and close - Signing on the dotted line.
Whether a lease is executed or escrow closes, this is the transaction’s inflection point—when opportunity becomes reality.

• C – Commission (Bill & Collect) The first rule of brokerage: get paid! 
Delivering the invoice, ensuring documentation is complete, and creating accountability for payment. This reinforces professionalism and prepares for the next critical step. The transaction isn’t truly complete until commission is received. Collection is part persistence, part process, and part diplomacy.
 
• E – Expand (Capitalize) - Turning today’s deal into tomorrow’s momentum. This includes sending press releases, updating social media, client thank-you's, marketing your success, and most importantly, nurturing referrals and building repeat business from experience.

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.
 
 

Reshoring: A Boon for U.S. Real Estate and Local Economies

For decades, American companies sent manufacturing operations overseas in search of lower costs. Cheap labor, fewer regulations, and efficient global supply chains made offshoring the dominant strategy for everything from electronics to pharmaceuticals. But the tide is turning.

 
Reshoring—the process of bringing manufacturing and supply chains back to the U.S.—has gained momentum in recent years. Supply chain disruptions during the pandemic, geopolitical tensions with China, and rising overseas labor costs have forced companies to rethink their strategies. Add in government incentives like the CHIPS Act and tax credits for domestic production, and reshoring are no longer just patriotic talking points—they are a business necessity.
 
While this shift brings economic benefits, one sector poised for significant gains is industrial real estate. Industrial space and logistics hubs are seeing increased demand as companies look to rebuild supply chains on American soil.
 
Industrial Real Estate’s Big Moment
Manufacturing may have been outsourced, but demand for industrial real estate has remained strong, thanks to e-commerce. Now, reshoring is adding another layer of demand, particularly for manufacturing and distribution space.
 
Manufacturers looking to reshore need factory space, and they’re not just eyeing traditional industrial strongholds like the Midwest. Texas, Arizona, and the Southeast are emerging as major reshoring hubs due to business-friendly policies, affordable land, and proximity to key transportation networks. Even California, despite high costs, is benefiting from semiconductor and biotech reshoring, thanks to its deep talent pool and access to ports.
 
With this shift, developers are repurposing outdated office and retail properties into industrial use. The conversion of big-box retail into warehouse and distribution centers is already happening, and underutilized office campuses could be next in line for transformation into R&D labs or advanced manufacturing facilities.
 
The Logistics Boom
Manufacturing doesn’t work in isolation. It needs a strong logistics network to move raw materials in and finished products out. That’s why reshoring is fueling growth in warehouse and distribution space, particularly in regions with easy access to rail, highways, and ports.
The trend is especially pronounced near inland logistics hubs like Dallas-Fort Worth and Atlanta, where vast warehouse developments are emerging to support reshored manufacturing operations. Port cities like Savannah, Charleston, and Los Angeles are also seeing an uptick in industrial activity as reshoring strengthens domestic supply chains.
 
Challenges to Overcome
Reshoring isn’t a magic bullet. Companies bringing production back to the U.S. face significant challenges, including labor shortages, infrastructure gaps, and higher operating costs.
The U.S. manufacturing workforce has shrunk over the years, and finding skilled workers is a growing concern. Companies investing in reshoring must also invest in workforce training and automation to bridge the skills gap. Community colleges and vocational programs are beginning to step up, but this will be a long-term effort.
 
Another hurdle is infrastructure. While industrial construction boomed prior to 2023, roads, bridges, and ports need upgrades to handle increased freight movement. Power supply is another issue, particularly for energy-intensive industries like semiconductor and electric vehicle battery production.
 
A Long-Term Shift
Despite these challenges, reshoring is not a short-lived trend—it’s a structural shift that will reshape American industry for decades. Advances in automation and AI are making domestic production more cost-competitive, and companies now recognize the risks of over-reliance on overseas supply chains.
 
For commercial real estate, this means continued demand for industrial space, adaptive reuse opportunities for underperforming assets, and expansion of logistics hubs. Cities and states that invest in infrastructure and workforce development will be the biggest beneficiaries of this new era of American manufacturing.
 
Reshoring is more than an economic shift—it can be a real estate revolution!

 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.
 
 

Tariffs: Trade Policy or Just Another Negotiation Tactic?

The other day, the issue of tariffs came up in a casual conversation. You see, a friend—we’ll call him Jim, because that’s his name—enjoys reading my column. I was flattered! Anyway, he mentioned that tariffs would make a good column topic. We quickly agreed, however, that the underlying motivation of an administration imposing tariffs is often less about economic policy and more about negotiation.

Since Jim and I both negotiate for a living—he in the courtroom and I in commercial real estate—it struck me that tariffs aren’t just about leveling the playing field. More often than not, they’re a tool wielded to push for better deals. And in that respect, they’re not so different from the tactics used in boardrooms, lease negotiations, and legal disputes.

Take a recent example: when an administration announces a tariff on imported goods, it’s easy to assume the goal is to make domestic industries more competitive by making foreign products more expensive. That’s the textbook definition. But in practice, tariffs are often more about leverage. A country imposes tariffs not necessarily to keep them in place forever, but to extract concessions—lower tariffs on their own exports, stricter protections for intellectual property, or better trade terms overall.

If that sounds familiar, it’s because the same playbook is used in real estate negotiations all the time. Sellers list properties at inflated prices not because they expect to get them, but because they know buyers will push back. Landlords demand above-market rents knowing tenants will counter. In each case, the initial position is not the true goal—it’s a starting point in a larger negotiation.

Attorneys, like my friend Jim, take a similar approach. Motions, objections, and procedural tactics aren’t always about winning outright; sometimes, they’re just tools to gain leverage. A well-placed motion might force the other side to rethink their position, just as a newly imposed tariff might push a trade partner back to the bargaining table.

And yet, for those caught in the middle, the impact can be very real. In real estate, when negotiations drag on, tenants may face uncertainty, and deals can stall. In legal battles, a drawn-out process can drain resources. With tariffs, businesses that rely on imported goods—manufacturers, retailers, and consumers—often bear the immediate burden of higher costs, even if the long game is about brokering a better deal.

So how do you navigate these tactics? Whether you’re a business owner, investor, or consumer, recognizing the difference between a firm position and a negotiation strategy is critical. Is the other side genuinely standing their ground, or are they just applying pressure to move things in their favor? Understanding this can help you stay level-headed in negotiations and avoid making knee-jerk reactions that could cost you in the long run.

In the end, whether in global trade, real estate, or the courtroom, the art of negotiation remains the same. The first offer, the initial demand, or the newly imposed tariff isn’t always about the outcome—it’s about the process of getting there.

Jim and I left that conversation with a shared conclusion: tariffs may shape economic policy, but at their core, they’re just another tool in the game of negotiations. And as any good negotiator knows, it’s not about the first move—it’s about who walks away with the better deal.

 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.

 
 

The Office Space Reckoning: What’s Next for Empty Buildings?

I have a friend who ran a small accounting firm in a mid-rise office building off the 405. He had a corner suite with a view of the freeway—nothing glamorous, but solid. For years, he paid his rent on time, kept his staff of five happy, and felt secure knowing his office space was a symbol of his firm’s steady success. Then came the pandemic, and with it, the great work-from-home migration. By 2021, his lease was up, and he made a decision that landlords across Southern California now dread: he let it go.
 
Fast forward to today, and that once-bustling office tower is still struggling to fill vacancies. My accountant friend, like so many others, now operates remotely, with employees who have no desire to return to a traditional workspace. His old office? A ghost town—one of many scattered across the region.
 
The Office Space Dilemma
Southern California’s office market is at an inflection point. Vacancy rates in key markets like Downtown Los Angeles, Orange County, and even the tech-heavy hubs of the Westside are at record highs. According to industry reports, some buildings now hover around 30-40% vacancy—numbers that would have been unthinkable pre-pandemic.
 
Many landlords are feeling the squeeze. With high interest rates and declining property values, some are defaulting on loans or handing the keys back to lenders. Others are scrambling to repurpose their spaces, but office-to-residential conversions—while a hot topic—are easier said than done.
 
The Affordable Housing Mandate and Office Conversions
California has long been in an affordable housing crisis, and state leaders see underutilized office buildings as a potential solution. Governor Gavin Newsom and local municipalities have been pushing zoning changes and incentives to encourage office-to-housing conversions. On paper, it sounds like a perfect match: empty buildings meet an urgent housing need. In reality, it’s a far more complex equation.
 
Many office towers were never designed for residential use. Deep floor plates, lack of windows, and outdated infrastructure make conversions expensive and, in some cases, structurally impractical. 
 
Developers also face regulatory hurdles, with zoning laws, permitting delays, and financing challenges slowing progress. 
 
While some successful conversions have taken place—such as the historic Tribune Tower in Oakland—most landlords are finding it more feasible to hold out for office tenants than take on the massive costs of redevelopment.
 
So What Happens Next?
The commercial real estate industry is at a crossroads, and the future of office space will depend on creative solutions. Some landlords are embracing mixed-use redevelopment, incorporating residential, retail, and entertainment into former office hubs. Others are investing in high-end amenities to attract tenants back—think wellness centers, private clubs, and hospitality-driven office experiences.
 
But the hard truth is that Southern California will have to adapt to a world where remote and hybrid work are permanent fixtures. That means some office properties will never return to their pre-pandemic heyday. It also means that cities and developers will need to work together to make adaptive reuse more financially and logistically viable.
 
As for my accountant friend, he doesn’t miss his office much. His firm is thriving, his staff enjoys the flexibility, and he no longer has to sit in rush hour traffic on the 405. 
 
For him, the office space reckoning isn’t a crisis—it’s a new reality. And for commercial real estate, it’s time to figure out what that reality looks like.
 
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.