Before You Pursue That Deal, QUALIFY It First

In commercial real estate, not every opportunity is created equal. Some sparkle at first glance but fade with time. Others seem ordinary but blossom into career-defining deals. After decades in this business, I’ve learned that success often comes down to asking the right questions before diving in.
 
That’s why I developed the QUALIFY framework.
 
QUALIFY is an acronym — a checklist, really — designed to evaluate whether a prospect or assignment is worth your time and effort. It stands for: Quantitative Need, Urgency, Authority, Loyalty, Intent, Fuel, and Yearning. Let’s take a quick look at each piece:
• Quantitative Need: Is there a real, measurable requirement? A client who says, “I’m looking for space,” isn’t enough. How much space? When? Where? Why?
• Urgency: Is there a compelling timeline? Deals without deadlines often drift. Urgency adds gravity.
• Authority: Are you dealing with the true decision-maker? Chasing opportunities through multiple layers of approval rarely ends well.
• Loyalty: Is the client committed to working with you exclusively, or are you one of many brokers they’re contacting?
• Intent: Is the client serious about transacting, or are they simply “testing the waters”?
• Fuel: Do they have the financial resources to complete the deal? No amount of motivation can overcome a lack of funding.
• Yearning: Finally, is there emotional motivation? A client who needs to move, grow, or solve a pressing problem will push through obstacles.
 
Years ago, I was approached by a business looking for a large industrial building. On the surface, it seemed like the perfect assignment. But as I ran through QUALIFY, warning signs appeared: vague needs, no urgency, and no clear decision-maker. I politely stepped back. That “opportunity” dragged other brokers through months of wasted effort.
 
On the other hand, a small but highly motivated manufacturer came along shortly after. They checked every QUALIFY box — and we closed their lease within 45 days. It became one of the smoothest and most rewarding transactions of my career.
 
The lesson? In business — and in life — our most precious resource isn’t money. It’s time. We owe it to ourselves to invest our time wisely.
 
Before you chase the next shiny opportunity, take a moment to QUALIFY it first. Your future self will thank you.

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.

Will Blend-and-Extend Lease Strategies Make a Comeback in 2025?

In the aftermath of the pandemic, industrial lease negotiations entered uncharted territory. But unlike the Great Recession, this period saw a surge—not a collapse—in rental rates, particularly in Class A logistics warehouses throughout Southern California. Rents doubled, in some cases even tripled, driven by soaring demand, constrained supply, and e-commerce acceleration. 
 
That upward trajectory has since leveled off, and we’re now seeing a return to more normalized leasing conditions. However, rental rates have not yet subsided to pre-pandemic levels. 
 
Many in the industry expect downward pressure to continue throughout 2025, especially in markets with rising vacancy and macroeconomic uncertainty.
 
As this shift unfolds, landlords and tenants alike are revisiting an old but effective strategy: the blend and extend.
 
For those unfamiliar, a blend and extend is a lease modification that resets the rental rate—usually blending the remaining term’s rate with a new, often lower rate—in exchange for an extension of the lease term. It’s a win-win, in theory: tenants secure near-term relief, and landlords gain longer-term income stability.
 
During the early 2010s, this strategy was a go-to for owners and occupants after the Great Recession. But in recent years, it fell out of favor as rising market rents and tight industrial vacancy rates made lease concessions less necessary. 
 
Now, with shifting market dynamics—especially here in Southern California—the blend and extend may be poised for a comeback.
 
Here’s what makes this moment unique:
               •             Tariff uncertainty is rattling supply chains. Many importers and logistics companies operating near the ports of Los Angeles and Long Beach are reevaluating their long-term space needs in the face of potential cost increases. Locking in a lower rent through a blend-and-extend gives them breathing room while global trade policies shake out.
               •             Tenants are more cost-conscious than ever, and many are considering downsizing or relocating. A landlord who offers a reasonable blend-and-extend may retain a tenant who otherwise might leave.
               •             Landlords face longer lease-up times, particularly in softening sectors like class A logistics space. Extending a current tenant—even at a major discount—may be preferable to enduring months of vacancy.
               •             Lenders like stability. A longer lease term improves the property’s valuation and supports refinancing conversations.
 
However, not all spaces or situations qualify. Blend and extends work best when:
               •             The tenant is stable and has a solid track record of payment.
               •             The current rent is above market or nearing expiration.
               •             The landlord wants to avoid the risk (and cost) of vacancy and re-tenanting.
 
Owners and occupants alike should revisit lease portfolios and look for opportunities where both sides might benefit. In 2025, creativity and collaboration will again be the keys to unlocking deals—and the blend and extend might just be the versatile tool needed.

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.
 
 

What The Masters Can Teach Us About Commercial Real Estate

Every April, like clockwork, golf fans across the globe tune in to The Masters. From the blooming azaleas to the hushed reverence of Augusta National, it’s a tournament steeped in tradition and excellence. But beyond the pageantry and prestige lies a masterclass in preparation, strategy, and mental fortitude—qualities that resonate far beyond the fairway.
 
As I watched the tournament unfold this year, I was struck by how many parallels exist between The Masters and the world of commercial real estate. Whether you’re chasing birdies or escrows, there are lessons to be learned.
 
1. Preparation Wins Tournaments—and Deals
The grounds at Augusta are groomed with year-round precision for one magical week in April. Nothing is left to chance. In commercial real estate, preparation is no less important. Before a property ever hits the market or a buyer steps onto a site, there’s a mountain of research, underwriting, and planning that must be done. Deals go sideways when we cut corners—successful ones are built on the bedrock of preparation.
 
2. Strategy Over Strength
Sure, power off the tee is exciting. But it’s how a golfer manages the course—choosing shots wisely, knowing when to lay up, and navigating hazards—that determines the scorecard. The same is true in our business. Chasing every deal, every lead, and every shiny object is a recipe for burnout. Smart brokers know how to assess risk and reward, focus on the opportunities with the greatest potential, and let go of the ones that don’t fit.
 
3. The Short Game Seals the Win
Drives might get the crowd roaring, but tournaments are won with putts and chips. In commercial real estate, our short game shows up in the details: lease language, escrow instructions, title exceptions, and timelines. Deals don’t fall apart over asking price—they fall apart because of overlooked details and poor follow-through. Mastering the short game means fewer surprises and smoother closings.
 
4. It’s All in Your Head
Golf is as much mental as it is physical. Just ask any pro who’s blown a Sunday lead. The same goes for us. When a buyer backs out, a building fails inspection, or a deal dies in committee, we have two choices: spiral or steady ourselves. Longevity in this business favors those who stay calm, adapt, and keep moving.
 
5. Legacy Matters
At Augusta, legacy is everything. Champions are immortalized, and respect for the game runs deep. In commercial real estate, our reputation is our calling card. Over time, how we treat clients, competitors, and colleagues becomes part of our own professional legacy. It’s not about one big win—it’s about consistency, character, and how you play the long game.
 
So while most of us won’t slip on a green jacket anytime soon, we can still learn from those who do. The Masters reminds us that excellence is never accidental. It’s earned—through discipline, patience, and the relentless pursuit of better. In golf, in real estate, and in life.

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.
 
 

What the Commercial Real Estate Industry Can Learn from Tesla

Our aging vehicles finally cried “uncle.” And as someone with Scottish roots and a frugal mindset, I’ve always approached car buying with a specific formula: find a certified used vehicle, pay cash, and drive it until the wheels practically fall off. That method has served us well over the years with a low cost-per-mile—but lately, the repair bills started stacking up. It was time for a change.
 
What followed was a multi-week odyssey of AutoTrader scrolling, dealership visits, and spirited discussions with my wife over the best powertrain option—gas, hybrid, or electric. Due to a shortage of the car I originally wanted, we found ourselves walking into a Tesla showroom.
 
Fast forward to today: we are officially Tesla owners. And while I could fill a separate column with thoughts about the vehicle itself, I was struck by how much the Tesla experience mirrors trends—and opportunities—within commercial real estate. Let me explain:
 
1. The Search Mirrors Site Selection
Car shopping is not unlike the process tenants and buyers go through when sourcing new locations. There’s a checklist of needs, emotional and financial considerations, and ultimately, the choice that best aligns with priorities. The more intuitive and guided that search is, the better the experience.
 
2. Tesla Has Reimagined the Buying Process
Gone are the cubicles, the “let me talk to my manager” routines, and the hours-long negotiations. Tesla has engineered a customer journey that’s seamless—from the online order to the app-based updates to the five-minute pickup process. What if commercial real estate transactions were just as frictionless?
 
3. CRE Meets EV: Repurposed Real Estate
Many Tesla delivery centers and showrooms are in repurposed buildings—former big-box stores, warehouses, or auto dealerships. These adaptive reuses demonstrate that outdated space can be reimagined in bold, relevant ways. This is a huge lesson for property owners with obsolete inventory.
 
4. Tech as a Differentiator
From the test drive to the paperwork, everything is tech-forward. Not just modern—elevated. In CRE, we’re seeing the same trend: clients expect more digital tools, faster response times, and transparency. Firms that embrace smart tech—not just as a bolt-on, but as part of the DNA—will win.
 
The future of commercial real estate isn’t just about location—it’s about experience, adaptability, and efficiency. Just like Tesla rethought how we buy cars, maybe it’s time we rethought how we lease, sell, and manage properties.
 
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.

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.