Why Brokers Don’t Get the Listing

After over four decades in commercial real estate, I have watched countless brokers walk into listing presentations confident they would secure the assignment, only to walk out without it. When that happens, they often blame the fee, the competition, or the market. In reality, the reasons are usually much simpler and far more controllable.
 
In my experience, brokers fail to secure agency assignments for four primary reasons.
 
The first mistake is making the presentation about themselves rather than about the owner and the property. Experience matters. Production matters. Reputation matters. However, owners are not hiring a résumé. They are hiring someone to solve a problem. When a broker spends most of the meeting reciting awards, years in the business, and transaction volume, they unintentionally shift the focus away from the very person they are trying to serve.
 
Owners are sitting across the table wondering whether the broker understands their property, their timing, their financial objectives, and any pressures they may be facing. They want to feel heard. They want to feel understood. When the conversation centers on the broker’s accomplishments instead of the owner’s needs, confidence erodes. The most effective listing presentations are built around thoughtful questions, careful listening, and a clear demonstration that the broker truly understands the assignment.
 
The second reason brokers lose listings is that they fail to clearly articulate what makes the property unique in the marketplace. Every building has distinguishing characteristics. Location, access, parking, configuration, tenant mix, zoning, expansion potential, functional limitations, and redevelopment possibilities all play a role in how the property should be positioned. Yet too many presentations rely on generic marketing plans that could apply to almost any asset.
 
Owners deserve more than a promise to place the property into the brokerage community and send out email announcements. They want to know why a buyer or tenant would choose their property over the competing options down the street. They want to understand the likely target audience and how the property will be positioned to that audience. A broker who cannot clearly explain the property’s competitive advantages, while also acknowledging and planning around its weaknesses, will struggle to inspire confidence. Strong brokers position properties strategically. Average brokers simply expose them to the market and hope for the best.
 
The third mistake involves process. Owners are not merely seeking a number; they are seeking an outcome. Ideally, they want the highest price the market will bear, achieved within a reasonable period of time and with minimal disruption to their operations or tenants. What many brokers fail to do is clearly explain how they intend to deliver that outcome.
 
A thoughtful presentation should outline how the property will be prepared for the market, how pricing will be evaluated and refined, how prospective buyers or tenants will be identified and approached, how negotiations will be handled, and how the transaction will be managed from contract through closing. When this roadmap is missing, the broker may sound enthusiastic but not organized. Owners are placing a valuable asset into someone’s hands. They want to see structure, discipline, and a clear path forward.
 
The fourth and often most damaging mistake is locking into a single price as though it were absolute. Markets are fluid. Interest rates shift. Capital markets tighten or expand. Competing properties enter the market. Owner circumstances change. A pricing recommendation should be part of a broader strategy, not a rigid declaration.
 
Sophisticated owners understand that value is dynamic. A strong broker prepares them for multiple scenarios, discussing what might happen if activity is brisk, if it is slower than anticipated, or if market conditions change during the marketing period. By framing pricing as a strategy that can adapt to real-time feedback, the broker demonstrates awareness and flexibility. When a broker becomes emotionally attached to one number and defends it without regard to changing conditions, credibility suffers.
 
At its core, securing a listing is not about impressing an owner with accolades or confidence alone. It is about demonstrating understanding, clarity, strategy, and adaptability. Owners are entrusting brokers with significant financial decisions. They want someone who sees the property clearly, understands the market honestly, and can guide them through a defined process with steady hands.
 
The brokers who consistently secure agency assignments are not necessarily the loudest or the most decorated. They are the ones who make the conversation about the owner, position the property intelligently, outline a clear plan of execution, and remain flexible as circumstances evolve. In the end, clarity wins listings.

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.
 
 

AI Is Not Coming. It Is Here.

I am penning this column from Austin, Texas.
 
My company, Lee & Associates descended upon ATX for our annual Lee University, two days of intensive learning for Associates with fewer than five years in the business. Bright minds. Hungry professionals. The future of our industry.
 
I had the privilege of teaching The SEQUENCE, the framework I use to manage every transaction. Source. Evaluate. Qualify. Under Control. Execute. Negotiate and Close. Commission. Expand.
 
Epic.
 
Today’s focus, however, was Artificial Intelligence and its impact on commercial real estate.
 
As I sat in that room, one thought kept surfacing.
 
Where are our competitors headed with AI?
 
Because they are headed somewhere.
 
AI will not replace brokers. It cannot build trust. It cannot sit across from a nervous seller and create calm. It cannot read emotion or sense hesitation.
 
But it can analyze data in seconds. It can draft marketing copy in minutes. It can summarize leases instantly. It can identify ownership patterns. It can model scenarios. It can compress hours of research into moments.
 
And in brokerage, time is leverage.
 
The broker who learns to use AI effectively will not necessarily work longer hours. They will extract more productivity from every hour they work.
 
That matters.
 
Commercial real estate is not known for early adoption. We are relationship driven and precedent oriented. Yet history tells a clear story. The brokers who adopted email early gained speed. The brokers who embraced CRM systems built deeper databases. The brokers who leaned into social media built brand authority.
 
AI will follow the same path.
 
Right now, many are experimenting. A few are integrating. Very few are systemizing.
 
That gap is where separation will occur.
 
The risk is not that AI becomes too powerful. The risk is that your competitor becomes too efficient.
 
Imagine two brokers pitching the same assignment. One assembles materials manually and relies on past knowledge. The other uses AI to analyze absorption trends, identify off market prospects, refine pricing strategy, and deliver a sharper narrative because more time was spent thinking strategically instead of gathering data.
 
Who appears more prepared?
 
Who wins?
 
Technology has always widened the gap between those who lean in and those who resist. AI will do the same.
 
Here is what I believe. AI will elevate the organized. The curious. The disciplined. The systems driven broker.
 
It will not create work ethic. It will not replace judgment. If anything, it will make experience more valuable because when information becomes commoditized, interpretation becomes premium.
 
As I looked out at that room in Austin, I did not feel threatened by AI. I felt energized.
 
The next generation will not view this as disruption. They will see it as normal.
 
Pair relationship mastery with structured process. Add negotiation skill and market knowledge. Layer in intelligent AI usage.
 
That combination will not just survive the shift. It will lead it.
 
AI is not coming. It is here.
 
The question is simple.
 
Will you use it to multiply your effectiveness?
 
Or will you compete against someone who does?
 
From Austin, Texas, I suggest leaning in.
 
The separation has already begun.

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.
 
 

Which is harder, an owner or occupant assignment?

As commercial real estate professionals, our clients typically hire us for one of a handful of assignments. Broadly speaking, those assignments fall into two categories: the occupant side and the owner side.
 
You recognize an occupant requirement when a company is searching for space to occupy, what we commonly call buyer representation or tenant representation.
 
On the other side of the table, an owner hires us to fill a vacancy with a tenant or a buyer, or depending on the situation, to sell a leased building to an investor.
 
In my practice, I do both.
 
Which assignment is more difficult and why?
 
My short answer is, it depends. But since I have a bit more column space, let us explore the question more thoroughly, shall we?
 
Let us begin with the occupant side.
 
Representing a tenant or buyer often feels like detective work. You are handed a requirement that may or may not be fully formed. “We need 20,000 square feet.” “We want to own instead of lease.” “We are bursting at the seams.” Those statements are starting points, not conclusions.
 
The challenge is uncovering the true need. Is the space requirement based on headcount today or projected growth tomorrow? Is ownership driven by balance sheet strategy, ego, or a long term operational advantage? Is the urgency real or manufactured?
 
Occupant representation requires patience, probing questions, and occasionally the courage to slow a client down. Many times the hardest part is protecting them from themselves. I have seen companies chase shiny buildings in the wrong location, overcommit to space they cannot afford, or underestimate the cost of relocation. The difficulty lies in aligning financial reality, operational necessity, and emotional desire into a decision that makes sense five and ten years from now.
 
Now consider the owner side.
 
Representing an owner introduces a different kind of complexity. The product exists. The vacancy is real. The carrying costs are tangible. Time is measurable in monthly mortgage payments and operating expenses.
 
Here, the challenge is often market driven. You cannot manufacture tenant demand. You cannot force interest rates lower. You cannot single handedly compress cap rates or accelerate absorption.
 
An owner’s expectations may be shaped by yesterday’s market rather than today’s. Rents achieved two years ago may not be achievable now. A building that was once the belle of the ball may suddenly compete with newer, more functional inventory.
 
The difficulty on the owner side is managing expectations while protecting value. Pricing too aggressively can result in prolonged vacancy. Pricing too conservatively can leave money on the table. Marketing strategy, timing, positioning, and negotiation all become critical levers.
 
So which is more difficult?
 
When representing an occupant, you are often managing ambiguity. The assignment is fluid. The criteria can shift. Corporate leadership can change direction midstream. You are guiding strategy as much as executing it.
 
When representing an owner, you are managing exposure and risk. Every day a space sits vacant, there is a cost. Every rejected offer carries consequence. You are balancing urgency with discipline.
 
In strong markets, owner representation can feel easier because demand masks imperfections. In soft markets, it can feel like pushing a boulder uphill. Conversely, occupant representation can be simpler when options are plentiful and leverage is strong, and far more challenging when inventory is scarce and competition is fierce.
 
The truth is that neither side is inherently more difficult. They are difficult in different ways.
 
One requires uncovering the truth behind a requirement. The other requires confronting the truth about the market.
 
One demands internal clarity. The other demands external realism.
 
Perhaps the better question is not which assignment is more difficult, but which responsibility is greater.
 
In both cases, our role is the same. We are fiduciaries. We are counselors. We are translators between emotion and economics.
 
Whether I am helping a business secure a home for its operations or assisting an owner in monetizing an asset, the stakes are significant. Jobs are affected. Capital is deployed. Long term plans are shaped.
 
So when asked which side is harder, I return to my original answer. It depends.
 
It depends on the market. It depends on the client. It depends on the expectations brought to the table.
 
What does not depend on anything is the need for preparation, honesty, and experience. On either side of the equation, difficulty tends to diminish when clarity increases.
 
And clarity, more often than not, is what we are truly hired to provide.

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 Commercial Real Estate Can Learn from a Seahawks Super Bowl Win

Yesterday, I sat on our daughter’s sofa festooned with big game regalia. You see, it was Super Bowl Sunday, they coined “Harper Bowl.” A cute and effective way to frame the big game. The decibel level was akin to an Elton John concert, not because of the TV volume but from the excited youngsters born from close to twenty families. 
 
As the LX logo appeared, what dawned on me was this. I have watched EVERY Super Bowl since its inception in 1967 as the Packers of Green Bay squared off against the Kansas City Chiefs. 
 
But as my thoughts drifted to the week ahead, I wondered what commercial real estate lessons would be learned from this year’s extravaganza. Stay tuned, there were several.
 
For this exercise, I looked at the game through the lens of the Seattle Seahawks. Not the pageantry. Not the commercials. Not the halftime show. But the way championship teams are built and how that mirrors success and failure in commercial real estate.
 
Here is what stood out.
 
Championships Are Built Long Before Game Day. No Super Bowl is won on Sunday alone. It is the product of years of drafting, development, coaching continuity, discipline, and systems. The Seahawks’ success, has never been about a single star. It is about preparation and patience.
 
Commercial real estate is no different. Deals do not close because of one heroic phone call. They close because of months or years of relationship building, market knowledge, repetition, and process. By the time a transaction reaches the finish line, the real work has already been done.
 
Defense Matters More Than Flash. The Seahawks’ identity has long been rooted in defense, controlling the line, limiting mistakes, and forcing the opponent to earn every yard. It is not glamorous, but it wins games.
 
In commercial real estate, defense is underwriting, due diligence, lease language, timelines, and managing expectations. It is knowing when not to do a deal. The brokers who last are rarely the flashiest. They are the ones who protect their clients and their reputations.
 
Systems Beat Talent Alone. Every Super Bowl roster is filled with talented players. What separates champions is how those players perform within a system. Assignment football. Do your job. Trust the structure.
 
This is where many brokers wash out. Talent without structure leads to inconsistency. Systems, how you source, qualify, control, execute, and close, create repeatable success. The best brokers do not rely on memory or motivation. They rely on process.
 
Special Teams Decide Close Games. Games often turn on field position, penalties, clock management, and execution when no one is watching. Special teams do not get headlines, but they swing outcomes.
 
In our business, special teams are follow-ups, summaries, documentation, communication cadence, and closing logistics. Clients remember how a deal felt. Sloppy execution at the end can undo months of great work.
 
The Team Always Wins or Loses Together.  No one wins a Super Bowl alone. Coaches, players, trainers, scouts, and support staff all matter.
 
The same holds true in commercial real estate. The most durable careers are built with transaction coordinators, analysts, mentors, partners, and cooperative brokers. Lone wolves burn out. Teams endure.
 
As the last confetti fell and Monday arrived, the Super Bowl faded quickly. But the lessons do not have to. Whether on the field or in the marketplace, success is rarely accidental. It is built deliberately, patiently, and with discipline.
 
And that is a game worth studying.

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.
 
 

When a Buyer Needs Time in a Strong Market and in a Weak One

Every real estate deal has a clock. Sometimes that clock moves fast. Sometimes it slows down because the buyer needs time.
That time might be for a board approval. It might be for a tax deferred exchange to line up. It might be for a buyer of land who wants to secure entitlements before taking ownership.
 
When that happens, sellers usually ask the same question.
 
Why should I wait?
 
The answer depends on the market.

In a Strong Market, Time Is a Concession. In a strong market, sellers have options. Buyers are plentiful. Properties move quickly. When a buyer asks for extra time, it feels unnecessary and risky.
 
That reaction makes sense.
 
Waiting in a strong market means giving up flexibility. It means passing on other buyers. It means betting that nothing changes while the clock runs.
 
That is why sellers in strong markets rarely agree to wait unless they are compensated.
 
That compensation can come in several forms.
 
A higher price.
Money that becomes non refundable.
Clear deadlines that limit how long the seller is committed.
 
In a strong market, time has value. If a buyer needs more of it, the seller should be paid for it.

In a Weak Market, Time Can Be an Advantage. Down markets tell a different story. When activity slows, buyers become cautious. Financing tightens. Fewer offers come in. Sellers often discover that speed is no longer the prize it once was.
 
In those markets, a buyer willing to work through approvals or conditions can be valuable, not problematic.
 
Time in a weaker market can mean progress instead of stagnation. It can mean a deal that moves forward while others sit still. It can mean locking in a committed buyer when alternatives are uncertain.
 
In those situations, waiting may reduce risk rather than increase it.

Not All Delays Are the Same. Regardless of the market, sellers should understand why a buyer needs time.

There is a big difference between a buyer who must complete a specific step and one who is simply unsure.
 
Approvals with clear timelines are different from open ended requests. A tax deferred exchange with a signed sale is different from one that is still theoretical. Entitlements already in process are different from those that have not yet begun.
 
The clearer the reason and the timeline, the safer the delay.
 
 
What Sellers Should Focus On. Whether the market is strong or weak, sellers should focus on three simple questions.
 
Is the buyer committed.
Is the timeline clear.
Am I being protected while I wait.
 
If those questions are answered well, waiting can make sense. If they are not, it usually does not.
 
 
The Bottom Line. In strong markets, waiting is a concession and should be treated as one.

In weaker markets, waiting can be a strategy.
 
The key is understanding the difference and structuring the deal accordingly.
 
Time is neither good nor bad. It is simply a tool.
 
Used properly, it can close deals. Used carelessly, it can cost them.
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.
 
 

Why Eight Out of Ten Commercial Real Estate Brokers Don’t Make It

 

Commercial real estate brokerage has a quiet but brutal statistic attached to it.
 
Roughly 80 percent of new commercial real estate agents will leave the business within two years. Eight out of ten will not make it. The number surprises newcomers, but it should not. When compared to new business startups, the attrition rate is nearly identical.
 
And that comparison is appropriate, because commercial real estate brokerage is a startup. Every new agent is essentially launching a small business without a guaranteed salary, without a defined strategy, and often without the infrastructure needed to survive the early years.
 
Yet we rarely talk about it that way.
 
Instead, the industry continues to recruit aggressively, vet loosely, and train inconsistently. The result is predictable. Churn.
 
Recruiting Is Easy. Developing Is Hard. Most brokerage firms are very good at recruiting and far less effective at developing. That is not a criticism. It is a structural reality.
 
Recruiting is scalable. Mentoring is not. Training programs often focus on mechanics. Contracts, terminology, databases, market reports. Coaching, when it exists, is frequently episodic rather than systematic. True mentoring, where an experienced professional is invested in another person’s long term success, is increasingly rare.
 
But even if those gaps were magically filled, the attrition rate would still be high. Because the real issue is not spreadsheets, scripts, or sales techniques.
 
It is purpose.
 
The Missing “Why”. Most new agents enter commercial real estate without a clearly articulated “why.”They can explain what they want to do. They can describe what they hope to earn. They often talk about flexibility, upside, or entrepreneurship.
 
But ask them why this business, and the answers are usually vague.
 
Barbara Corcoran, founder of The Corcoran Group and longtime investor on Shark Tank, once said she can tell within five minutes whether someone will succeed in real estate.
 
Not because of experience.
Not because of intelligence.
Not even because of personality.
 
Because of their why. 

Commercial real estate brokerage has a quiet but brutal statistic attached to it. 

Roughly 80 percent of new commercial real estate agents will leave the business within two years. Eight out of ten will not make it. The number surprises newcomers, but it should not. When compared to new business startups, the attrition rate is nearly identical. 

And that comparison is appropriate, because commercial real estate brokerage is a startup. Every new agent is essentially launching a small business without a guaranteed salary, without a defined strategy, and often without the infrastructure needed to survive the early years. 

Yet we rarely talk about it that way. 

Instead, the industry continues to recruit aggressively, vet loosely, and train inconsistently. The result is predictable. Churn. 

Recruiting Is Easy. Developing Is Hard. Most brokerage firms are very good at recruiting and far less effective at developing. That is not a criticism. It is a structural reality. 

Recruiting is scalable. Mentoring is not. Training programs often focus on mechanics. Contracts, terminology, databases, market reports. Coaching, when it exists, is frequently episodic rather than systematic. True mentoring, where an experienced professional is invested in another person’s long term success, is increasingly rare. 

But even if those gaps were magically filled, the attrition rate would still be high. Because the real issue is not spreadsheets, scripts, or sales techniques. 

It is purpose. 

The Missing “Why”. Most new agents enter commercial real estate without a clearly articulated “why.”They can explain what they want to do. They can describe what they hope to earn. They often talk about flexibility, upside, or entrepreneurship. 

But ask them why this business, and the answers are usually vague. 

Barbara Corcoran, founder of The Corcoran Group and longtime investor on Shark Tank, once said she can tell within five minutes whether someone will succeed in real estate. 

Not because of experience.

Not because of intelligence.

Not even because of personality. 

Because of their why. 

When the market turns, when deals fall apart, when commissions are delayed, when prospects stop returning calls, and when months go by without a paycheck, talent alone does not carry you through. Purpose does. 

A weak why folds under pressure. A strong one adapts. 

What the Survivors Have in Common . Those who survive the first two years, and eventually thrive, tend to share a few characteristics. 

They understand that early income volatility is part of the price of admission. 

They treat the business like a profession, not a job. 

They are willing to learn slowly while working relentlessly. 

And most importantly, they have a reason for being there that goes beyond money. 

For some, it is building long term client relationships. For others, it is autonomy. For some, it is legacy. For still others, it is proving something to themselves or to someone else. 

The specifics vary. The clarity does not. 

Attrition Isn’t a Failure. Ignoring It Is. High attrition in commercial real estate brokerage is not inherently bad. This business demands resilience, delayed gratification, and personal accountability. It is not for everyone, and it should not be. 

But pretending the problem is purely technical misses the point. 

Until firms recruit more thoughtfully, mentor more intentionally, and help new agents articulate a real why, the numbers will not change. And they should not. 

Because the goal is not to reduce attrition at all costs. 

The goal is to make sure the right people stay. 

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.

Are We Living in America’s Next Golden Age?

Every so often, a phrase starts floating around with just enough frequency to make you stop and notice it.

Lately, that phrase is this: “We’ve officially entered the golden age of America.” As a matter of fact, one of my clients mentioned this to me in a text last week.   

It stopped me in my tracks and caused me to ponder. 
 
It is a bold statement. Maybe even an uncomfortable one, especially after several years marked by a pandemic, inflation, political division, and a steady drumbeat of pessimism. And yet, more people are saying it out loud. Not quietly. Not tentatively. Confidently.
So what is going on?

The Case for Optimism. Those arguing we are entering a golden age usually start with technology, and for good reason.

Artificial intelligence has moved from theory to tool in record time. Tasks that once took days now take minutes. Entire industries are being rethought, not gradually, but all at once. History tells us that when productivity jumps suddenly and broadly, economic growth follows.
We have seen this movie before during the Industrial Revolution, the postwar manufacturing boom, and the early days of the internet. Each era felt chaotic at the time. Each one, in hindsight, marked a period of outsized progress.

There is also the matter of resilience. Over the past decade, the United States has weathered trade disruptions, a global shutdown, inflation, banking stress, and geopolitical uncertainty. And yet capital continues to flow into American markets. The dollar remains dominant. U.S. companies still lead globally. By comparison, many peer economies are struggling with demographic decline, energy dependence, or structural stagnation.

Relative strength does not always feel like strength, but in global terms, it matters.
The Counterargument. Of course, not everyone is buying the golden age narrative.
Housing affordability remains a serious challenge. Healthcare costs continue to rise. Income inequality is real. Trust in institutions is fragile. And for many families, the idea that we are living in some kind of economic renaissance feels disconnected from daily reality.
That skepticism is healthy. Historically, so called golden ages have never been evenly distributed. They tend to reward those positioned to adapt early, while others feel left behind.

The Real Question. Which brings us to the most important point.
Golden ages are not usually declared by historians. They are declared by participants, often while they are still unfolding, and often with disagreement.
The more useful question is not whether we are in a golden age.
It is this: Are you positioned to benefit if we are?
Because if history is any guide, periods of rapid change do not wait for consensus. They reward preparation, adaptability, and long term thinking. They punish complacency.
Whether this moment becomes known as a golden age, or just another missed opportunity, will likely depend less on national headlines and more on individual decisions.
And those decisions, as always, are still very much within our control.

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.