What Makes a Great Tour?

Showing buildings, suites, or retail storefronts is an important part of our job as commercial real estate professionals. We refer to this simply as “touring.”
 
As I write this, I have a client in town. Later today, we’ll spend time walking several locations that could house their expanding business. What they’ll see in a few hours is the result of several days of preparation.
 
Which got me thinking, what actually makes a great tour?
 
In my experience, it’s not just unlocking doors and walking through space. A great tour is a curated experience. It’s intentional. And when done well, it moves a client meaningfully closer to a decision.
 
Here are the key elements.
 
Preparation. A great tour starts long before you arrive at the first property.

Preparation means understanding your client’s business, their operational needs, and their financial guardrails. It also means confirming availability, access, and timing for each stop.
 
Nothing erodes confidence faster than fumbling for lockboxes, waiting on unresponsive listing agents, or showing a space that clearly doesn’t fit. Preparation eliminates friction. It shows professionalism. And it tells your client, “I value your time.”
 
Previewing. Whenever possible, preview the spaces.

Photos lie. Marketing packages exaggerate. And sometimes what looks perfect online simply doesn’t translate in person.
 
By previewing, you can eliminate the obvious “no’s” before your client ever sees them. More importantly, you can walk into each tour stop with context, highlighting strengths, addressing weaknesses, and controlling the narrative.
 
You don’t want to be discovering the property at the same time as your client.
 
Collateral. Bring the right information.

A clean tour book or digital package with property summaries, site plans, and key metrics goes a long way. Your client shouldn’t have to rely on memory after seeing five or six buildings.
 
Good collateral allows you to compare options in real time. It also reinforces your role as an advisor, not just a door opener.
 
Showing Order. Sequence matters more than most brokers realize.

Start with a strong, relevant option, but not necessarily the best one. Build momentum. Let the client calibrate. Save one of the top contenders for later in the tour when their perspective is sharper.
 
Ending strong is critical. The last property seen often becomes the benchmark against which all others are measured.
 
Financial Modeling. Real estate decisions are financial decisions.

As you walk each property, translate what your client is seeing into dollars. What does this option mean monthly? Over the term? What are the hidden costs such as improvements, operating expenses, and relocation?
 
When you can connect the physical space to the financial impact in real time, you elevate the conversation. You move from “Do I like this building?” to “Does this make sense for my business?”
 
Follow Up. The tour doesn’t end when you get back in the car.

A timely follow-up, same day or next morning, is essential. Summarize the properties, gather feedback, and begin narrowing the field.
 
This is where decisions start to take shape. Strike while the impressions are fresh.
 
Final Thought. A great tour is never accidental.

It’s the result of preparation, intentional sequencing, thoughtful communication, and financial clarity. When done right, it creates confidence, for your client and for you.
 
And confidence is what ultimately leads to action.

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.

OKC CRE Lessons

Our travels took us to the heartland of America, Oklahoma City, Oklahoma. We had a bit of soul searching to do and some some spare time so we visited the Oklahoma City museum which commemorates the horrific event of April 19, 1995. Although no monument can remember the 168 people who perished that day, the thousands injured or the countless families changed forever by one heinous act, the memorial is tasteful, poignant, and impactful.
 
You may be wondering what this has to do with commercial real estate? Indulge me as I recount a few lessons learned.
 
The first lesson involves the power of the built environment. Standing on the grounds of the memorial, one quickly realizes that thoughtful design can carry extraordinary meaning. The reflecting pool rests where a city street once ran. The field of empty chairs quietly represents each life lost that day. The Survivor Tree, scarred yet standing, symbolizes resilience and hope. None of these elements shout for attention, yet together they communicate something profound.
 
As commercial real estate professionals we often spend our days discussing square footage, lease rates, zoning, financing, and market conditions. Those metrics matter and they drive decisions. But occasionally we are reminded that buildings and land can carry something far more meaningful. The spaces we help create and shape ultimately become part of the stories of the people who occupy them. Offices are where businesses grow, warehouses support livelihoods, and storefronts become gathering places for communities. Real estate is not merely physical space. Over time it becomes part of human experience.
 
A second lesson is the strength of community. The bombing destroyed a building and took innocent lives, yet it did not destroy Oklahoma City. In the days that followed, first responders, volunteers, and ordinary citizens came together in ways that still resonate today. The rebuilding that occurred was not just structural. It was emotional and civic. The memorial stands today not simply as a reminder of tragedy but as evidence of how a community can respond with dignity, resolve, and unity.
 
Commercial real estate often plays a role in these moments of recovery. Cities evolve. Neighborhoods change. Buildings are repurposed or replaced. Through it all, people continue to invest in places where businesses can operate and communities can gather. The physical structures may change, but the underlying strength of a community often becomes even more visible during times of adversity.
 
A third lesson centers on purpose. The land where the Alfred P. Murrah Federal Building once stood could have been redeveloped in countless ways. Instead, it became sacred ground dedicated to remembrance, education, and hope. The memorial was not designed to generate income. It was created to honor lives, teach future generations, and provide a place for reflection.
 
That decision speaks volumes about the role land can play within a community. In our profession we often evaluate property through the lens of value, return, and highest and best use. Those are appropriate considerations. Yet occasionally the highest and best use of a property is not measured in dollars per square foot. Sometimes it is measured in the meaning it holds for the people who visit it.
 
Walking through the memorial reminded me that land and buildings often become far more than the structures originally envisioned. They become places where life unfolds. They carry memories, celebrate achievements, and sometimes help communities heal.
 
For those of us who make a living in commercial real estate, that perspective is worth remembering. The properties we work on today may someday become part of stories we cannot yet imagine.

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.
 
 

How Oil Prices Affect CRE

I’m penning this column from America’s heartland, Oklahoma City. According to the Oklahoma Historical Society, Oklahoma City (OKC) has been a major hub for the oil industry since the late 1920s. The Oklahoma City Oil Field, which was discovered in 1928, extends into the city limits and historically included, and even to this day still produces from, areas around the Oklahoma State Capitol.
 
My thoughts went toward what’s happening in the Strait of Hormuz and oil’s impact on the United States economy and, more specifically, commercial real estate.
 
What follows is how a rise in oil prices affects us.
 
Oil is one of the most important inputs in the global economy. When the price of oil rises sharply, the effects ripple outward through transportation, manufacturing, consumer spending, and ultimately the real estate that houses those activities.
 
Consider transportation first. Oil fuels the movement of goods across the country. Trucks, trains, ships, and airplanes all rely heavily on petroleum-based fuels. When oil prices climb, the cost of moving products increases. Higher freight costs work their way into supply chains, increasing the cost of everything from raw materials to finished goods.
 
For industrial real estate, this dynamic can create both pressure and opportunity. Companies facing higher transportation costs often seek greater efficiency in their logistics networks. That can increase demand for well-located distribution facilities closer to major population centers and transportation corridors.
 
A rise in oil prices also contributes to inflation. Oil is not only a consumer product but a key industrial input. When energy costs rise, businesses typically pass at least a portion of those increases on to consumers. Over time, higher energy costs can lead to broader inflation across the economy.
 
Inflation, in turn, influences interest rates. When inflation rises, central banks often respond by tightening monetary policy. Higher interest rates increase borrowing costs for businesses and investors. In commercial real estate, that can affect everything from property values to the feasibility of new development.
 
Not every region reacts the same way to higher oil prices. Areas tied closely to the energy industry often benefit when oil prices rise. Increased drilling activity, expanded energy services, and job growth can stimulate local economies.
 
Cities like Houston, Midland, and Oklahoma City have historically seen economic tailwinds when oil prices strengthen. Increased activity in the energy sector often leads to additional demand for office space, industrial facilities, and housing.
 
At the same time, regions heavily dependent on transportation, tourism, or energy-intensive manufacturing may feel the negative side of rising oil prices more directly.
 
There is also the factor of uncertainty. Oil price spikes frequently coincide with geopolitical tensions, such as those currently surrounding the Strait of Hormuz. When businesses perceive risk in the global economy, they tend to slow expansion decisions. Leasing activity may pause, capital investment can be delayed, and corporate occupiers often adopt a more cautious stance.
 
Yet higher energy prices can also accelerate structural changes in the economy. Companies may shorten supply chains, bring production closer to home, or invest in more efficient logistics systems. Each of these shifts has implications for commercial real estate, particularly in the industrial sector.
 
Oil has always been more than a commodity. It is a signal about the health and direction of the global economy. When oil prices rise, the ripple effects eventually reach the buildings where we work, manufacture, store, and distribute goods.
 
From the vantage point of Oklahoma City, where oil has been part of the economic fabric for nearly a century, the connection between energy and real estate is clear. The price of oil may be determined in global markets, but its impact is felt locally, often in the commercial buildings that support our economy.

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 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.