CRE Twelve Days of Christmas

Christmas 2025 is in the books! 2026 is around the corner. The credit card bills are coming. But today’s column is a bit of diversion and fun. Please enjoy my take, as a commercial real estate professional, on the real twelve days of Christmas.  

On the first day of Christmas, my market gave to me - a deal that’s contingency free. 

 

On the second day of Christmas my market gave to me - two phone in leads and a deal that’s contingency free. 

 

On the third day of Christmas my market gave to me - three escrows, two phone in leads and a deal that’s contingency free. 

 

On the fourth day of Christmas my market gave to me - four closing dates, three escrows, two phone in leads and a deal that’s contingency free. 

 

On the fifth day of Christmas my market gave to me - FIVE NDAs, four closing dates, three escrows, two phone in leads and a deal that’s contingency free. 

 

On the sixth day of Christmas my market gave to me - six lenders lending, FIVE NDAs, four closing dates, three escrows, two phone in leads and a deal that’s contingency free. 

 

On the seventh day of Christmas my market gave to me - seven sellers selling, six lenders lending, FIVE NDAs, four closing dates, three escrows, two phone in leads and a deal that’s contingency free. 

 

On the eighth day of Christmas my market gave to me - eight buyers buying, seven sellers selling, six lenders lending, FIVE NDAs, four closing dates, three escrows, two phone in leads and a deal that’s contingency free. 

 

On the ninth day of Christmas my market gave to me - nine tenants leasing, eight buyers buying, seven sellers selling, six lenders lending, FIVE NDAs, four closing dates, three escrows, two phone in leads and a deal that’s contingency free. 

 

On the tenth day of Christmas my market gave to me - ten lawyers feuding, nine tenants leasing, eight buyers buying, seven sellers selling, six lenders lending, FIVE NDAs, four closing dates, three escrows, two phone in leads and a deal that’s contingency free. 

 

On the eleventh day of Christmas my market gave to me - eleven brokers golfing, ten lawyers feuding, nine tenants leasing, eight buyers buying, seven sellers selling, six lenders lending, FIVE NDAs, four closing dates, three escrows, two phone in leads and a deal that’s contingency free. 

 

But on the twelfth day of Christmas my market gave to me - twelve LinkedIn likings, eleven brokers golfing, ten lawyers feuding, nine tenants leasing, eight buyers buying, seven sellers selling, six lenders lending, FIVE NDAs, four closing dates, three escrows, two phone in leads and a deal that’s contingency free. 

 

Happy holidays dear readers!

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 Buying Motivation

I am frequently asked by clients if they should consider buying vs leasing a location. I have carefully analyzed this over the years and have discovered several characteristics that most owners of industrial real estate possess. In no particular order, they are:

Time in Business:
Most owners of industrial locations have been in business at least five years. The reasons are simple. Size needs, financing, and cost regulation.
Size needs tend to become apparent after a company has a five year track record. If a company's size needs are fluctuating, the best course of action could be leasing a location with a series of options to extend. In this way, the company is not saddled with an illiquid asset that can hamstring growth. Once a company has been profitably in business for at least five years, a down payment can be generated as well as a track record for financing is created. Purchasing an industrial location with long term fixed rate debt is a terrific way to regulate the location cost of doing business!

Closely Held:
Most owners of industrial locations are closely held corporations and are not publicly traded. I am specifically referring to owner occupants as opposed to non occupant owners (investors such as Real Estate Investment Trusts). The reason is simple as publicly traded companies would rather avoid the earnings drain that depreciation of real property creates.

Market Conditions:
NOW is the very best time to purchase a location that I have experienced since 1984. Interest rates are at levels last seen in the Truman administration. Owners are extremely motivated to make a deal even at depressed pricing and banks want to rid themselves of non performing assets.

Finding Balance When the Holidays Arrive

Well, the holidays are upon us, and I always relish this time of year. The pace slows, if only a little, and I find myself with more moments to spend with family, reflect on the year that was, and imagine the year that is coming. It is a season that encourages gratitude and perspective, something that can be hard to maintain during the other eleven months when deals stack up, deadlines tighten, and our calendars appear to have a life of their own.
 
Looking back on my career, especially those early decades when I was brokering full time while also husbanding and parenting three amazing kids, I am often asked how I kept any semblance of balance. Let me be clear. It was not easy. There were sleepless nights, missed cues, and more than a few days when I felt stretched too thin. But I made it through, and more importantly, I grew through it.
 
As you wrap gifts, close year end transactions, or simply catch your breath, I want to offer three lessons that helped me navigate the overlapping worlds of work and family. These are not theories. These are practices that held me together.
 
 
1. Focus on what is important
 
 
In commercial real estate, deals can feel monumental. They demand our attention, our creativity, and often our weekends. But here is the truth I learned, sometimes the hard way: Your family will not remember that deal you made. They will, however, remember your absence from the dance recital, the league championship, or the Scout outing.
 
Those moments do not get replayed. You do not get a second chance at your child’s childhood. As brokers, we pride ourselves on being present for our clients. Being present at home, truly present, is what builds a life. Deals close and commissions fade. Memories linger.
 
 
2. Spend your working time working
 
 
Over the years, I have had the privilege of observing many top producers. They come in all styles and personalities, but they share one trait. They have a laser like focus during their most productive hours.
 
When it is time to work, they work. They are not polishing paper clips, reorganizing desk drawers, or scrolling their way into distraction. They use their productive hours with intention. Because of that discipline, they earn the right to unplug without guilt.
 
That discipline gave me margin. It allowed me to coach, to carpool, and to sit at the dinner table without my phone buzzing like a brainstem. If you want balance, you cannot waste the hours that are meant for production.
 
 
3. Keep perspective. We are brokers.
 
 
Let me say something that may sound a little bold. We are brokers. We are not performing heart surgery, saving souls, or sending astronauts into space.
 
What we do is important. We help businesses grow, communities evolve, and owners invest in their future. But what we do is not a matter of life and death. Once I accepted that truth, an enormous weight lifted. The pressure I placed on myself did not always match the stakes.
 
Keeping perspective helped me show up at home as a calmer and steadier version of myself. It allowed me to step away when needed, without the world collapsing or without me imagining that it might.
 
 
 
As this year comes to a close, I hope you find space to pause and consider how you balance the roles you play as a broker, a spouse, a parent, a friend, and sometimes a mentor. Our profession asks much of us. Our lives ask more.
 
The deals will still be there in January. The people you love are here right now.
 
Take care of them. Take care of yourself. And enjoy this season of slowing down.

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.
 
 

Hawaii Trip

I am penning this column from the bridge of a fishing charter. Our oldest grandson is beside me, wide eyed, focused, and convinced that fishing is the highest and best use of any waking moment. I am not entirely sure where his passion for the sport began, but I can say this with certainty: when I was his age, I loved to fish as well.
 
The difference is simple. I grew up roughly a thousand miles from the closest ocean. My angling adventures were confined to small freshwater creeks and quiet Midwestern lakes. The biggest variable was usually the weather, not whether a twelve pound yellowtail might decide to make your morning interesting.
 
You may be wondering what any of this has to do with commercial real estate. Indulge me for a moment while I draw a few parallels.
 
Fishing, at its core, is an exercise in patience. You prepare your gear, choose your bait, study the water, and position yourself where the fish are most likely to be. After that, you wait. Brokerage works the same way. We research the market, gather the right tools, identify promising targets, and then we work the phones and email lines with steady persistence. Sometimes the activity is nonstop. Other times the sea goes quiet and nothing seems to bite. Successful fishermen and successful brokers share the same understanding. You cannot force a fish to take the hook and you cannot rush a deal that is not ready to happen.
 
Another similarity is the importance of reading the conditions. Fishermen pay attention to tides, currents, water temperature, and the behavior of the birds above the surface. Brokers pay attention to interest rates, construction costs, vacancy levels, and tenant demand. Both professions require situational awareness because the environment affects the outcome more than most people realize. A fisherman who ignores the tide will come home empty handed. A broker who ignores the market will do the same.
 
There is also the matter of preparation. On a fishing trip you tie knots, organize tackle, check fuel, pack food, and make sure you have everything from sunscreen to a functional radio. In brokerage the preparation involves research, financial analysis, property tours, marketing materials, and countless conversations in advance of any signed agreement. When the moment finally comes and a fish hits or a client is ready to move forward, preparation determines who lands the opportunity and who watches it swim away.
 
Finally, there is the thrill of the catch. Whether a fish is on the line or a deal is in play, you feel the same surge of energy. Your focus sharpens. Your movements become precise. The stakes rise, but so does the satisfaction of knowing that your patience and preparation are paying off. The best brokers and the best fishermen know that the reward is not only in the result. It is also in the process of showing up, putting in the work, and staying ready.
 
As my grandson reels in yet another bonito, I am reminded that fishing, like commercial real estate, is never about guaranteed outcomes. It is about persistence, awareness, and a willingness to cast again even when the last few attempts came up empty. The ocean does not owe you a bite and the market does not owe you a deal. But if you prepare well, put yourself in the right waters, and keep your line in play, good things will happen.
 
That is as true out here on the Pacific as it is back at my desk in Southern California.

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.
 
 

Before the Ball Drops: Key CRE Strategies for 2026

December. The last month of 2025. Soon, families across Southern California will be lighting candles, trimming trees, gathering for Hanukah, Christmas and Kwanzaa, and counting down the seconds to a brand-new year. It’s a festive season - one that always seems to arrive earlier and earlier, but I digress.
 
December also brings something else: perspective. A reminder that 2026 will be here before you know it, and with it a new set of opportunities and challenges for commercial real estate owners and occupants.
 
While many industries begin to slow down as the holidays approach, December is one of the most consequential months of the year for anyone who owns, leases, manages, or invests in commercial property. The final weeks of the year serve three essential functions:
 
Planning for the Year Ahead.
This is the time when landlords evaluate rent rolls, upcoming renewals, debt maturities, and operating expenses - and make strategic decisions for the coming year. Occupants, meanwhile, revisit headcount projections, space needs, and whether their current footprint still aligns with how they operate in a post-pandemic hybrid world. In short, December is when next year’s real estate strategy is set into motion.
 
A Meaningful Recap of 2025.
Every year tells a story, and 2025 was no exception. For owners, rising construction costs, fluctuating interest rates, and evolving tenant expectations shaped the narrative. For occupants, efficiencies, supply-chain recalibrations, and shifting labor patterns influenced real estate decisions. A December recap helps frame what worked, what didn’t, and what trends are likely to carry into 2026.
 
Preparing for Critical Deadlines.
From tax planning to lease notice periods to budgeting cycles, December is full of dates that matter. Missing one can mean financial consequences - or missed opportunities - well into the new year. Many companies don’t realize that decisions made (or delayed) in December often determine whether next year’s real estate costs rise gently, or spike dramatically.
 
As we turn the page on 2025, December offers a rare moment to pause between what was and what will be. Whether you own commercial real estate or occupy it, the decisions you make in these final weeks set the tone for the year ahead. Take the time to assess, adjust, and anticipate. With thoughtful planning and a clear-eyed view of the market, 2026 can be a year of opportunity rather than uncertainty. Until then, may this holiday season bring you peace, perspective, and a prosperous start to the new year.

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.
 
 

Business Sold, Retain Real Estate?

The Background:
I provide location advice to owners and occupants of industrial real estate in Southern California. Frequently, this advice results in a company buying a building to occupy. With prices at historic lows and cheap financing, this in many cases can result in a "rental" rate cheaper than a market rental rate. The "rental rate" I am referencing is the debt service achieved when applying the purchase price financed at today's low interest rates. When an ownership structure involves the owners of the business that will occupy the real estate...a terrific union is formed. The "company" pays the rent (debt service), and the owners benefit from the appreciation, depreciation, and stability of facility costs. What happens if the owner decides to sell the company (tenant)? Should the real estate be retained?

The Misconception:
When the owner of the company and the occupant of the real estate are identical...but defined by entity...the owner of the real estate controls the decisions of the tenant...length of lease, annual increases in rent, tenant improvements considered, etc. When an owner of a company decides to sell the company (tenant) and retain ownership of the real estate some misconceptions occur.
The new tenant will run the business the same as the original owner
The new tenant will decide to stay in the real estate for many years
The new tenant will pay rent in a timely manner
The new tenant will care for the real estate the same way as the original "tenant"
While owning real estate and the company that occupies the real estate may prove to be a sound financial decision, owning real estate while not owning the company may not be as sound. As an example, I encountered a closely held company that purchased a 50,000 square foot building for their use. The company occupied the building for eight years until the owners decided to sell the company. The owners retained the real estate and signed a five year "leaseback" with the new owners of the company. The owners of the real estate enjoyed a nice cash flow for five years. At the end of the five years, however, the company decided to vacate the building and relocate to a facilty in another state. The owner of the real estate was now forced to compete with other owners of 50,000 square foot buildings...in many cases better capitalized...to secure a new tenant. The owner could not secure a tenant and the owner was forced to sell the building in an undesirable dip in the real estate cycle.

The Solution:
We advise many owners in this situation to sell the building as a leased investment upon the execution of the new lease to an owner whose core assets fit the criteria. We then suggest reinvesting the proceeds through a tax deferred exchange into an asset class with less risk...IE a multi tenant project OR simply paying the tax on the proceeds and investing in a non-real estate asset.

CRE Thanks!

By the time you read this column, Thanksgiving will be relegated to leftovers and gridiron scores. You’ve all enjoyed family and possibly gone to Irvine regional Park to have your annual Christmas image made. Maybe you’ve even ridden the Christmas train.
 
But as the leaves continue to turn and fall, I wanted to take this opportunity to give thanks for an amazing commercial real estate year and those that made it so.
 
I’m thankful for the folks at the Southern California News Group, especially my editor, Samantha Gowen for your continued confidence and allowing me to publish my missives here on a weekly basis.
 
I’m grateful for all of the offices throughout the Lee & Associates network, which allowed me to take their valuable time and deliver seminars on the QUALIFY framework.
 
This year found me publishing my very first book, The SEQUENCE. The reception among friends, family, colleagues, brokers throughout the United States, and clients has been remarkable. The book has resonated exactly the way I pictured it, as a personal journey and framework for building a successful career and commercial real estate. The title really hits as it is a double entendre. The first meaning of SEQUENCE are the steps of a commercial real estate transaction. The second and more important meaning, in my opinion, are the steps you take and the decisions you make, that allow you to build a foundation to be successful in our business. Thank you to all who have purchased the book, read it, and taking the time to send me a note.
 
I’m thankful to my clients who have trusted me with their precious commercial real estate assets. That e-commerce distributor who expanded their footprint by triple in the in the Inland Empire, that plastic bottle distributor who made a flight to quality, and the national material handling company, who has trusted me with their real estate business for the past 20 years and continues to grow and amaze.
 
I attended some memorable conferences this year, including the SIOR fall conference in Louisville, Kentucky. Thank you to all who made it an unforgettable conference.
 
And finally thank you to my wife of 46 years, my confidant, traveling partner, mother of our three children, grandmother to our six grandchildren, accomplished author and tremendous friend. The life we’ve built together has been nothing short of spectacular and I am forever humbled to be your husband.

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.