The Dance of Commercial Real Estate: A Complex Waltz

Commercial real estate deals often appear as a bewildering tango of factors. Motivation, fear, greed, market conditions, financing, credit-worthiness, uncertainty, and economic outlooks all swirl together in a dizzying display. But strip away the complexities, and you're left with two essential players on the dance floor: an occupant and an owner.
An occupant might be a buyer looking to purchase or a tenant seeking to lease. On the other side, an owner could be a landlord with space to rent or a seller ready to part ways with their property. When these two parties, properly motivated, find each other, the real dance begins.
As a commercial real estate practitioner, my role is to choreograph this intricate performance. To do so effectively, I rely on five key elements:

1. Ownership: Knowing who holds the deed is the first step in any potential transaction.
2. Availability: What's on the market? What spaces are up for grabs?
3. Recent leases: Understanding the current rental landscape informs both occupants and owners.
4. Recent sales: These transactions set the tempo for property values.
5. Appeal: Identifying which occupants might be drawn to a particular building is crucial for a successful match.

But let's circle back to those factors I mentioned earlier. How do they fit into this dance?
Motivation is the music that gets everyone moving. Without it, the dance floor remains empty. Fear and greed? They're the rhythm section, driving the beat faster or slower, influencing how quickly deals come together or fall apart.

Market conditions and economic outlooks set the overall mood of the ballroom. Are we in a upbeat swing or a cautious waltz?

Financing and credit-worthiness act as the dancing shoes. Without them, even the most eager dancers might sit out a few numbers.

Uncertainty? That's the fog machine, adding an element of mystery and sometimes confusion to the proceedings.

When all these elements align - when the music is right, the rhythm is pulsing, the mood is positive, and everyone's got their dancing shoes on - that's when the magic happens. A motivated occupant and an equally motivated owner find each other on the dance floor, and a deal is struck.
As a commercial real estate professional, my job is to be part DJ, part dance instructor, and part matchmaker. I need to read the room, understand the music, and bring the right partners together at the right time.

It's a complex dance, indeed. But when it all comes together? There's nothing quite like it in the business world.
 
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.