What Can the Allegheny River Valley Teach Us About Commercial Real Estate?

My wife and I have been on a mission since 2017 to visit all fifty states. After this weekend, we’ve now reached forty-four, including Alaska and Hawaii. The only ones left are the great plains states, Virginia, and Vermont. We were so close to Vermont last summer but decided instead to spend a few days in western Massachusetts. In hindsight, we should have crossed that border when we had the chance. Next year, we’ll have to make a special trip to the northeast to finish the list.
 
This past weekend found us in the Steel City, also known as “The Burgh”- Pittsburgh, Pennsylvania. When we drove in from the airport and emerged from the I-376 tunnel, an incredible panorama of skyscrapers opened before us. Framed by three rivers, the Pittsburgh skyline is one of the most impressive I’ve ever seen. From our base there, we were able to visit Steubenville, Ohio; Cumberland, Maryland; and Weirton, West Virginia - all within a short drive.
 
You may be wondering what any of this has to do with commercial real estate. If you’ve followed my column for any length of time, you know I can’t help but look for real estate lessons in everything I experience. This weekend was no exception. Let’s take a look at a few takeaways from the Allegheny River Valley.
 
Steubenville, Ohio: Protecting the Foundation. Just across the Ohio River from West Virginia sits the historic town of Steubenville. It began as a frontier fort designed to protect surveyors mapping new land. Without those early surveyors, the land could not have been divided, titled, or developed. In many ways, they laid the groundwork - literally and figuratively - for the future economy.
 
The lesson for commercial real estate is clear. Before any deal can progress, the groundwork must be done properly. That means understanding zoning, confirming ownership, verifying building conditions, and doing your due diligence before you commit. Much like those surveyors, we protect our clients by defining the boundaries and identifying the hazards. Skipping this step can leave you exposed, just as the early pioneers would have been without a fort to retreat to.
 
Pittsburgh: Reinvention at Scale. Once the beating heart of America’s steel industry, Pittsburgh suffered a severe economic collapse in the late 1970s and early 1980s. But instead of fading away, the city reinvented itself. It invested in education, technology, and healthcare. Today, Pittsburgh is home to world-class universities, robotics startups, and medical research centers. Its economy no longer depends on steel, it depends on innovation.
 
This kind of reinvention is something we often see in commercial real estate. Properties, like cities, go through life cycles. A building once used for heavy manufacturing may find new life as a logistics hub or a research lab. An outdated office building might become a mixed-use creative space. The key is seeing potential where others see decline. Pittsburgh teaches us that reinvention, when paired with vision and investment, can lead to thriving new opportunities.
 
Cumberland, Maryland: The Power of a Downtown Revival. Traveling south from Pittsburgh, we stopped in Cumberland, Maryland, a small mountain town with big character. Decades ago, its downtown looked tired and forgotten. But today, it’s been completely transformed. Streets have been repaved, buildings repainted, and storefronts refilled. There’s energy, color, and commerce where there once was blight.
 
In our world, downtown revival projects often start with one bold investor or a city initiative that reimagines what’s possible. When one property owner takes the leap to remodel, others follow. Before long, momentum builds. Cumberland shows us that with vision and collaboration, even a struggling location can experience a renaissance.
 
If you’ve ever driven through an older industrial corridor that suddenly seems alive again - with breweries, boutique manufacturers, and adaptive reuse projects - you’ve seen this same story play out closer to home.
 
The North Shore: Building Around Experience. One of the most striking parts of Pittsburgh is its North Shore, home to the Steelers, Pirates, and Pitt Panthers. Decades ago, this area was primarily industrial. Today, it’s a bustling entertainment district filled with stadiums, restaurants, a casino and hotels. What was once a manufacturing zone is now a center of experience and energy.
 
Commercial real estate increasingly revolves around creating experiences. Whether it’s a retail development designed around community gathering spaces or an industrial project that prioritizes employee amenities, success depends on understanding how people want to use the space. The North Shore redevelopment shows how powerful it can be when cities - and property owners - think beyond square footage and focus on what draws people in.
 
Lessons from the Allegheny. Traveling through the Allegheny River Valley, I was reminded that markets evolve, industries adapt, and places reinvent themselves. From Steubenville’s early foundations to Pittsburgh’s transformation and Cumberland’s revival, the story is the same: progress requires vision, courage, and a willingness to build something new from what once was.
 
Commercial real estate is about much more than bricks and mortar. It’s about understanding cycles, reading signs of change, and helping clients navigate transitions. Whether you’re developing a warehouse, repositioning an office, or reimagining a neighborhood, the principles are the same as those found in the river valleys of the east - prepare well, adapt quickly, and invest with vision.

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.
 
 

Louisville, KY Can Teach Us About Commercial Real Estate

My wife and I just returned from Louisville, Kentucky; the home of Muhammad Ali, Jennifer Lawrence, Louisville Slugger bats, the Kentucky Derby at Churchill Downs, the “hot brown” open-faced sandwich and lest I forget - bourbon whiskey by the barrel full! You see, we attended the fall conference for the Society of Industrial and Office Realtors (SIOR). This year’s soirée was held in Louisville, Kentucky.
 
On the agenda was a bit of sightseeing, touristing, networking and world-class learning from the best and brightest in our industry.
 
So today, you’re getting a two-fer. What the SIOR Global Conference and Louisville, Kentucky can teach us about commercial real estate.
 
The horses are at the post, so here goes.
 
SIOR Lesson #1: Relationships Trump Algorithms. No matter how advanced our tools become - CRMs, AI-assisted valuations, digital twins - the commercial real estate business is still a people business. The SIOR conference reaffirmed this. Deals still get done because of trust, credibility, and consistency. The speakers hammered home that in an age where data is everywhere, clients choose advisors who care, listen, and show up - not just those who can crunch numbers.
 
Louisville Lesson #1: Southern Hospitality Sells. From the moment we landed, Louisville reminded me that how you make someone feel often matters more than what you tell them. Every server, Uber driver, and shop owner radiated warmth. That same principle applies in real estate. Want to stand out in a crowded market? Treat every client like a guest at your table. The courtesy you extend today becomes the relationship you close tomorrow.
 
SIOR Lesson #2: Adaptability Wins the Race. One panel discussed industrial data centers and their voracious need for cooling water and gobs of megawatts. These large boxes filled with many smaller boxes are not your data centers from the late 1990’s. The take-home? You must understand the “power story” and how to effectively tell it. The brokers and owners who thrive are those who evolve with the market rather than fight it. The best in our business don’t just react to disruption - they anticipate it.
 
Louisville Lesson #2: Reinvention Is in the City’s DNA. Louisville was once known primarily for bourbon and baseball bats. Today, it’s also a hub for logistics, tech startups, and healthcare innovation. Old factories are now creative offices and distilleries have become experiential brands. Sound familiar? It’s the same evolution our properties are following. Reinvention keeps you relevant - whether you’re a city or a commercial real estate professional.
 
SIOR Lesson #3: Community Builds Credibility. The SIOR network is more than a collection of brokers - it’s a community. We share referrals, best practices, and market insights freely. In doing so, we elevate the profession. When one of us succeeds honorably, all of us benefit. That’s a powerful reminder that collaboration beats competition, especially in an era when clients expect local expertise with global reach.
 
Louisville Lesson #3: Pride of Place Matters. Louisville doesn’t try to be Nashville, Chicago, or Dallas. It leans into what makes it Louisville: horse racing, bourbon, history, and heart. The same applies to commercial real estate. Know your market, celebrate its quirks, and champion its strengths. Whether you’re in Pittsburgh, the Inland Empire of SoCal, or Manhattan , authenticity attracts business.
 
Final Furlong: What It All Means
The SIOR Fall Conference and the city that hosted it delivered the same message in different accents:
Success in commercial real estate - and in life - isn’t about chasing trends. It’s about relationships, adaptability, community, and authenticity.
 
Louisville may have been 2,000 miles away from our home in Orange County, but its lessons fit perfectly here in Southern California. Because whether you’re selling bourbon or buildings, the fundamentals remain the same: serve people well, stay curious, and keep learning from every stop along the way.

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 Dodgers 11th inning triumph can teach us about commercial real estate

I must admit, I used to be a huge baseball fan. The crescendo of my fandom occurred in 2002 when the Angels prevailed over the Giants in the seventh game of the World Series. I couldn’t imagine it ever being any better than that season, so my interest waned. Last night, I found myself tuning in for the seventh game climax and oh my goodness, what a game!
 
You may be wondering what the seventh game of the World Series has to do with commercial real estate. Indulge me for an inning or two while I explain.
 
1. Never assume the game is over. In the Game 4 win vs. the Philadelphia Phillies, the Dodgers prevailed 2-1 in 11 innings thanks to a bases-loaded, two-outs scenario that turned on a misplay.
 
CRE lesson: Deals may drag on, go to “extra innings,” or appear stalled. Staying engaged, remaining ready and spotting the opportunity when it comes can make the difference. Just because it looks like lapsed momentum doesn’t mean the deal is dead.
 
2. Deals like ballgames can turn on one swing. Last night, the Dodgers were down to their last outs until an unlikely number two hitter launched a home run in the top of the eleventh inning. Then in the bottom of the inning they held on by stranding a runner on third with one out and turning a game-saving double play. Game over! Dodgers win.
 
CRE lesson: That’s commercial real estate in a nutshell. You don’t always win with your cleanup hitter. Sometimes the surprise player steps up. And when pressure mounts, execution and defense matter as much as offense.
 
3. Keep depth and “bench strength” ready. In that win and others, the Dodgers relied on talent beyond their starting pitchers and starting eight with role players stepping up.
 
CRE lesson: Build a team and system so you have back-up options: alternative properties, secondary brokers, backup financing, contingency plans. When the “regulation innings” don’t finish the job, you’ll want your bench ready to step in.
 
4. Execution under pressure counts. The 11th inning is the “extra” inning with fatigue, stress, and uncertainty all rising. The Dodgers executed.
 
CRE lesson: As deals drag closer to closing - or during unforeseen disruptions (zoning issue, financing hiccup, tenant pull-out) your ability to execute calmly under pressure distinguishes you. Systematic processes, clear roles, pre-planned checklists help you perform when others choke.
 
5. Persistence builds culture. The Dodgers’ repeated success in extra-innings, high-leveraged situations shows a mindset and culture of fighting until the end.
 
CRE lesson: Over the long term, cultivating a team/brand that refuses to give up, that always follows through to finish strongly builds credibility. Your track record in “extra innings” (long deals, tough markets) becomes a differentiator.
 
6. Use the moment to build story and momentum. Such a dramatic win becomes part of the team’s narrative.
 
CRE lesson: When you bring a deal over the finish line under challenging conditions, tell it. Use the story to broadcast success, attract next clients, build your reputation.
 
Every commercial real estate deal has its ninth-inning moment, when the outcome can shift with one good swing or a steady glove. The brokers who win are the ones who keep believing, keep executing, and never let the pressure change their approach.

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 an overnight camp out can teach us about commercial real estate

One of our grandsons is active in the Cub Scout program. His mom, our daughter, has found herself thrust into the role of outdoor activities manager for the den. She asked if I wanted to tag along with our grandson and her on a weekend camping trip to Oso Lake. I haven’t slept on the ground in twenty years - but the weekend sounded fun - so I agreed to go. 
 
My recollection of Oso Lake was during its private bass fishing era. Apparently, it was leased to the Boy Scout program in around 2008 and it has been converted to an overnight campground for Scouting of America.
 
You may be wondering, what an overnight Cub Scout camp out has to do with commercial real estate. Only these things. Please indulge me as I review a few.
 
Adaptive Reuse and Repositioning: The Oso Lake Model
My first thought upon arriving at the camp wasn't about tent poles or s’mores, but about adaptive reuse and repositioning. Here was a property - a former private fishing lake - that had changed its highest and best use. For decades, it was a specialized recreational asset. Today, it's a bustling youth campground.
 
In Southern California commercial real estate, this pivot is the name of the game, especially with the shifts we've seen in office and retail. Think of an older, vacant office park being converted into much-needed multifamily housing or a sprawling aerospace campus repurposed into a warehouse project. The physical location remains, but the function and therefore the value driver completely change. Oso Lake proves that even a property with a strong legacy can find a new life and a more vital role in the community by adapting to a new demographic and market need.
 
Zoning and Entitlement: You Need the Right Permit for the Campfire
We had specific rules about where we could set up our tent, where the cars had to be parked, and even the type of fire we could build. No rogue campfires allowed - you had to use the designated, permitted fire pit.
 
In commercial real estate, this translates directly to zoning and entitlements. You can have the best vision for that old shopping center (say, turning it into a mixed-use development with apartments and ground-floor retail), but if the city's zoning code only allows retail, your project is dead in the water - or facing years of costly, uncertain negotiations. 
Just like a Scout leader needs the proper fire permit, a developer needs the proper zoning and approvals to execute a project. Southern California's local jurisdictions are all unique, and mastering those specific rules is as critical as mastering the knot-tying merit badge.
 
Demand Drivers and Demographics: Who is Your Tenant (or Camper)?
Who is coming to Oso Lake now? It's not the exclusive bass-fishing crowd; it’s families, Cub Scouts, and school groups. The Scouting of America program understood the demographics of their users - families looking for structured, safe, accessible outdoor experiences - and positioned the property to meet that specific demand.
 
This is the very essence of understanding the market in our region. Are you developing an industrial park? Your tenant demand is driven by e-commerce, logistics, and supply chain efficiency. Are you building a new Class A office building? Your tenant is driven by a desire to attract talent with amenity-rich, highly-collaborative spaces. 
 
Just like the Cub Scout program must cater to the needs of young families, your commercial property must cater to the evolving needs of the businesses and people who will occupy it.
 
The camping trip was a great reminder that success, whether in the woods or in a boardroom, comes down to understanding the fundamentals: adaptability, playing by the rules, and knowing your audience. 
 
Now, if you'll excuse me, I need to go see if my grandson packed out all his trash. That, too, is a lesson in good stewardship - a topic for another column entirely.

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 State Fair of Texas can Teach us about Commercial Real Estate

Our travels took us to Dallas, Texas for the last week of the State Fair of Texas - the world’s largest state fair - I’m told. After all, everything is bigger…
 
Anytime we travel, I always look for a lesson or two or at least a way to improve brokering commercial real estate. This trip was no different, but maybe a bit harder to ascertain.
 
So maybe a look at how the Orange County Fair and State Fair of Texas differ would be fun with a bit of commercial real estate mixed in. If you’re up for it, here goes.
 
The first thing that hits you at the Texas State Fair is the scale. It’s enormous. Big Tex greets you from his perch above the fairgrounds, smiling down on acres of exhibits, food stalls, and carnival rides. The Orange County Fair by comparison feels more intimate, more navigable, and, well, more California casual. Both are successful in their own way, but they serve different audiences with different expectations.
 
Commercial real estate is much the same. Some markets operate on a Texas scale - huge industrial parks, massive logistics hubs, and sprawling development tracts. Others, like Southern California, require creativity within tight boundaries. We don’t always have more land to build on, so we learn to repurpose, subdivide, and modernize. It’s the difference between having a wide-open canvas and mastering the art of working inside the frame.
 
Another noticeable difference is pace. At the Texas fair, people linger. They stroll, talk, eat, and soak in the atmosphere. In Orange County, we move faster. We come for an afternoon, check a few exhibits, maybe catch a concert, and then we’re on to the next thing.
 
This mirrors brokerage styles. In some regions, deals develop slowly through long-term relationships and measured conversations. In others, the tempo is brisk - speed, competition, and timing often determine who wins. The best brokers, like fair organizers, understand their crowd. They adjust their rhythm to match the market.
 
Then there’s the food. At the State Fair of Texas, deep-fried creativity reigns supreme. Fried butter. Fried bacon-wrapped hot dogs. Even fried cookie dough. It’s indulgent, over the top, and delightfully unapologetic. At the Orange County Fair, you’ll still find your share of fried temptations, but there’s also a nod toward fresh, local, and organic.
 
This difference in flavor has a lesson too. In brokerage, knowing your client’s appetite is everything. Some crave big, bold moves - buying large portfolios, chasing redevelopment plays, or taking on risk for the promise of reward. Others prefer steady, predictable, and sustainable decisions. Our job is to serve what satisfies, not just what’s trending on the midway.
 
I also noticed something subtle but powerful at both fairs: community pride. The Texas fairgrounds tell the story of the state - its agriculture, innovation, and culture. The Orange County Fair showcases local artists, small businesses, and family-owned farms. Both fairs remind their visitors that they’re part of something larger.
 
Great commercial real estate brokers do the same. We connect businesses to communities, not just buildings to tenants. When a manufacturer expands, a warehouse fills, or a property sells, we’re shaping the local economy. Every transaction adds a thread to the fabric of the region we serve.
 
So what can the State Fair of Texas teach us about commercial real estate?
 
That size matters, but so does fit. That pace varies, but focus wins. That knowing your audience - whether they want fried Oreos or fresh fruit - is the key to satisfaction. And most importantly, that pride in place transforms transactions into relationships.
 
As Big Tex would say, “Howdy, folks!” Whether you’re buying, selling, or leasing, make your next deal something to smile about.
 
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 can the City of Brotherly Love teach us about commercial real estate?

Our travels took us to Philadelphia, Pennsylvania last week. No. Not for the pivotal Dodger vs Phillies series but for a stop on my book tour and bit of work. Yes! We were able to sample a Philly cheesesteak - alas a vegan one - and ascend the Rocky steps to city hall. We even attended a musical in the same theatre Thomas Jefferson graced in 1807.
 
You may be wondering what a trip east can teach us about commercial real estate? Indulge me while I review a few reasons.
 
Legacy matters. Walking the cobblestone streets of Old City, you are reminded that history leaves an imprint on everything. The architecture tells a story of adaptation and endurance. Buildings that once housed print shops or tanneries now host tech startups, art galleries, and coffee roasters. The lesson? A well-built structure can live many lives. In commercial real estate, we often focus on the next deal, but Philadelphia reminds us that long-term vision and sound fundamentals outlast the trends of the moment.
 
Density breeds creativity. Every block in the downtown core bursts with energy. Office towers sit shoulder to shoulder with residential conversions and vibrant street-level retail. It is a living example of how proximity drives collaboration. In Southern California, where sprawl is our default, we can learn from Philadelphia’s mixed-use fabric. The best projects today are those that layer uses - industrial with office, retail with residential, community with commerce. When people and ideas collide, opportunity follows.
 
Transit changes everything. Unlike most West Coast cities, Philadelphia was built for pedestrians and trains, not cars. That simple difference shapes land use, property value, and even tenant demand. Industrial users there still rely on rail access. Office tenants value walkability. Neighborhood retailers thrive because foot traffic never stops. The takeaway for us is clear: accessibility sells. Whether through freeways, ports, or planned transit corridors, the ease of connection defines the worth of location.
 
Pride of place builds value.
Philadelphians are proud of their city. You can feel it in every mural and every conversation at the corner market. That civic pride translates into investment, maintenance, and long-term ownership. As brokers and owners, we know that when people believe in their community, properties stay leased and values rise. A clean street, a cared-for façade, or a supportive business district can elevate an area faster than any zoning change.
 
Reinvention is not a phase - it is a way of life. From its colonial roots to its modern skyline, Philadelphia has reinvented itself countless times. Industry shifted. Populations moved. Yet the city continues to evolve, not resist. That spirit of adaptation is exactly what today’s commercial real estate world demands. Office conversions, e-commerce distribution, re-shored manufacturing - all of it requires the same willingness to look at existing assets and ask, “What could this become?”
 
So, what can the City of Brotherly Love teach us about commercial real estate? That legacy, density, access, pride, and reinvention are not just urban characteristics. They are timeless business principles. The best deals, like the best cities, are those that continue to create value long after the ink dries.
 
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 a 50th High School Reunion Can Teach Us About Commercial Real Estate

Last weekend, I attended my 50th high school reunion. It was a night filled with laughter, memories, and the occasional moment of “Wait, who are you again?” Fifty years. That’s a long time. My high school English composition teacher, Mrs. Beck, would be pleased I’m still using complete sentences, correct punctuation and an occasional pun. But I digress. 
 
As I looked around the room, I couldn’t help but notice how much this gathering had to say about the business I’ve spent my life in: commercial real estate. 
 
The Power of Relationships
 
A reunion is really a relationship check-in. You see the people with whom you stayed in touch, and you also rediscover connections that simply went dormant. Some classmates reminded me of things we did decades ago that I had forgotten. It struck me that commercial real estate works the same way. Relationships never really expire. A client I helped in 1998 might call me today with a new need. When you treat people right, time becomes an ally, not an obstacle.
 
Cycles and Constants
 
At the reunion venue, I saw the full spectrum of change. Hairstyles, waistlines, and technology have certainly evolved. Yet the essence of people remains constant. The same is true of our business. Markets rise and fall. Interest rates climb and dip. Industrial demand surges and softens. But the fundamentals never change. Location, supply and demand, and integrity still matter more than anything else.
 
Adaptation Equals Longevity
 
A few classmates had completely reinvented themselves. They took risks, learned new skills, and embraced change. Others had refused to evolve and seemed stuck in time. In real estate, the difference between thriving and surviving often comes down to the same thing. Those who adapt to new tools, new markets, and new client expectations remain relevant. Those who don’t fade into memory.
 
Legacy Over Titles
 
No one at a 50th reunion brags about their job title or income. The conversation turns to family, friends, and impact. That perspective hit me deeply. In commercial real estate, we can get consumed by the next deal or the next commission check. Yet, in the end, our legacy is not measured by the size of our portfolio but by the reputation we built and the people we helped along the way.
 
The Long Game Always Wins
 
Some of the strongest friendships in that room began with small moments fifty years ago. The same is true in brokerage. A quick conversation, a handwritten note, or an act of service can echo decades later. The long game always rewards those who play it with consistency and care.
 
Fifty years of shared history reminded me that success in both life and commercial real estate is about connection, character, and commitment. The deals come and go. The relationships endure.
 
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 Happens to Your Building When You Sell Your Company?

Many family-owned businesses face this reality at some point: you decide to sell your company. 
 
Congratulations! It’s the culmination of years, maybe decades, of hard work. But if your business occupies real estate, whether owned by a related entity or leased from a third party - there’s another big question: what happens to the building?
 
The answer depends largely on whether your company owns the property through a related entity or simply leases space from an unrelated landlord. Each path requires a different strategy.
 
Scenario One: Owned Real Estate
 
If your operating business occupies a building owned by you or a related entity, several options emerge:
 
Sell the real estate before the business sale. You can sell the building to an owner - occupant and arrange to vacate once the company transaction closes. This separates the real estate deal from the business deal, providing clarity for all parties.
 
Lease the building to the buyer of the business. Instead of selling, you might keep the property and sign a lease with the buyer of your company. This allows you (or your family entity) to continue collecting rental income long after the business changes hands.
 
Formalize a lease before the sale of the business. Another option is to establish a lease between the related entity (property owner) and the operating company before selling. This locks in occupancy terms, giving the buyer certainty and making the business sale potentially more attractive.
 
Scenario Two: Leased Real Estate
 
If your company rents from an unrelated, arm’s-length landlord, the conversation is different. In this case, the business buyer will want to know:
          •        How much time is left on the lease?
          •        Are there options to renew or expand?
          •        Is the rental rate market-competitive?
 
A strong lease can be an asset to the sale, while an expiring or above-market lease can become a liability. In many cases, negotiating an extension or adjustment with the landlord before selling the business can smooth the path for a transaction.
 
Why This Matters
 
Buyers aren’t just purchasing your business operations - they’re buying continuity. If the real estate arrangement is murky, the deal becomes more complicated. By addressing how the building fits into the transaction, you eliminate uncertainty, increase buyer confidence, and often enhance the overall value of the sale.
 
Final Thought
 
Selling a business is one of the biggest financial and emotional decisions a family will ever make. Don’t let the real estate piece become an afterthought. Whether you own or lease, work with advisors who can help you consider all potential directions so you can move on to your next chapter with peace of mind.
 
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 Three-Letter Acronym Can Make or Break Your Property Deal

Imagine buying a property only to discover that hidden underground tanks are leaking fuel into the soil, or that decades ago a dry cleaner left behind chemicals that still linger beneath the surface. Suddenly, your new investment comes with a multi-million-dollar cleanup bill.
 
That’s the risk posed by a little-known acronym: REC, short for Recognized Environmental Condition. And if you’re buying, selling, financing or potentially leasing commercial real estate, it’s something you need to understand.
 
What is a REC?
 
In the commercial real estate world, a REC means there is the presence or likely presence of hazardous substances or petroleum products on a property. These conditions may come from:
          •        A past or current release of contaminants into the soil, water, or air.
          •        Evidence suggesting a release might have happened, like stained soil or corroded barrels.
          •        Circumstances that pose a material threat of a future release.
 
Think of a REC as a red flag during due diligence. Just like a cracked foundation might derail a home purchase, a REC can bring a commercial deal to a grinding halt.
 
Why Lenders and Buyers Care
 
A REC isn’t just an environmental issue, it’s a financial one.
          •        Financing: Banks typically require a clean environmental report before approving a loan. If a REC is flagged, the deal may be delayed, restructured, or even killed.
          •        Liability: Under federal and state laws, the new property owner could be held responsible for cleanup, even if they didn’t cause the problem.
          •        Value: Properties with RECs often appraise lower and can sit on the market longer.
 
How the Process Works
 
When an industrial or commercial property changes hands, buyers usually commission a Phase I Environmental Site Assessment (ESA). This involves reviewing past records, inspecting the property, and interviewing current or former operators.
 
If the Phase I flags a REC, the next step is a Phase II ESA, which involves testing soil, groundwater, or air to confirm whether contamination exists.
 
Depending on results, options include:
          •        Remediation (removing or treating the contamination).
          •        Seeking regulatory closure if issues have already been addressed.
          •        Purchasing environmental insurance to cover potential risks.
          •        Negotiating price adjustments to reflect the added risk.
 
Historical and Controlled RECs
 
Not all RECs are created equal.
          •        HREC (Historical REC): A past issue that’s been resolved to regulators’ satisfaction and no longer poses a risk.
          •        CREC (Controlled REC): A contamination issue that remains, but with restrictions in place (for example, limiting property use to industrial operations only).
 
While these don’t always kill deals, they do shape how a property can be used and what obligations an owner inherits.
 
How Buyers and Sellers React
 
For buyers, a REC means choices: walk away, renegotiate price, or push the seller to pay for further testing or cleanup. For sellers, a REC can mean offering concessions, securing insurance, or even cleaning up the property in advance to avoid surprises in escrow.
 
The Bottom Line
 
A REC doesn’t always spell disaster for a transaction. But it always changes the dynamics. Buyers, sellers, and brokers who understand how RECs work can work through the challenges, avoid liability and keep deals alive.
 
In commercial real estate, knowledge isn’t just power. It’s protection.
 
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 Industrial Real Estate Becomes Obsolete

I recently guested on a podcast called The Industrial Real Estate Podcast. You see, its host, Chad Griffiths, is a fellow industrial real estate broker and Society of Industrial and Office Realtor. We share a passion for industrial real estate and authoring books about our craft - his, Industrialize, and mine The SEQUENCE. Our sixty minutes together was not quite Mike Wallace worthy, but for two professionals geeking over truck doors it was close.
 
As I reflected on our conversation, a thought occurred. In the time Chad and I have brokered - Chad over twenty years and I over forty - how many classes of industrial real estate have become obsolete?
 
As the mind dump morphed into a review, I believed it to be column-worthy. So here goes.
 
Concrete Block Structures
 
In the 1960s and 70s, the standard for small to mid-sized warehouses in Southern California was concrete block. At the time, it was inexpensive, durable, and easy to build. Fast forward a few decades and block buildings fell out of favor. Why? They were prone to cracking, offered limited design flexibility, and were far less energy-efficient than tilt-up concrete panels. Today, investors look at a block structure and immediately calculate how much it will cost to either retrofit it for earthquake safety or scrape it altogether.
 
Warehouses with Ceiling Heights Shorter than 24 Feet
 
What was once considered “plenty of clearance” is now laughably short. In the 1980s, 16–20 feet clear worked just fine when distribution was more about floor stacking and hand-moving pallets. Then came the rise of racking systems, e-commerce fulfillment, and the drive for cubic efficiency. A 20-foot clear building today is relegated to mom-and-pop distributors or creative reuses like breweries and gyms. Institutional tenants won’t touch them. Twenty-four feet is the minimum bar now, with 32–36 feet quickly becoming the new normal.
 
Buildings with Insufficient Loading for Large Trucks
 
Dock-high loading once meant a few truck wells tucked into a building’s backside. That was fine when trucks were smaller and supply chains less demanding. Now, tenants expect wide truck courts, multiple dock positions, and a minimum of 130-foot depth for maneuvering 53-footers. A shallow court or limited dock access instantly disqualifies a building from consideration. In fact, I’ve had clients walk away from otherwise functional properties simply because the loading couldn’t accommodate modern logistics.
 
Warehouses Converted to Telecom Hubs in the Late 1990s
 
During the telecom boom, a frenzy of industrial-to-telecom conversions swept across the market. Warehouses were gutted, generators added, and raised floors installed to handle racks of equipment. When the bubble burst, many of these facilities sat dark, expensive, and ill-suited for their original purpose. Few could be economically converted back to warehousing. They became the white elephants of the industrial world, proving how risky it can be to over-specialize a building.
 
Pre-Dot Com Data Centers
 
Much like the telecom conversions, the first wave of data centers built before the dot-com collapse were designed for a world that never fully arrived. Oversized chillers, underutilized floor space, and outdated cabling left them obsolete within a decade. While the need for data centers eventually exploded, it was the next generation - purpose-built, hyper-efficient facilities - that captured the market. The early ones often limped along, trading hands at discounts before being demolished or radically reconfigured.
 
Research and Development (Flex) Buildings
 
Once the darling of the 1980s and 90s, flex R&D buildings were designed with equal parts office, light manufacturing, and lab space. They attracted tech startups, defense contractors, and medical firms. But as industries changed, those needs shrunk or migrated into either pure office towers or specialized industrial campuses. Flex buildings with 50% office and 50% warehouse became hard to lease. The market wanted either full warehouse/distribution or Class A creative office - not the in-between. Today, many flex projects have been scraped, converted to logistics buildings, or repositioned for other uses.
 
Final Thought
 
Obsolescence in industrial real estate is both predictable and instructive. What was “state of the art” in 1985 may be functionally useless today. Brokers, investors, and occupants alike should remember: buildings have life cycles just like everything else. The trick is recognizing when a feature is no longer an asset but a liability - and acting before the market forces your hand.
 
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.
 
 

Anniversary Lessons for Real Estate (and Life)

As I write this, I’m looking out over the vast blue Pacific Ocean. My wife, Carla, and I decided to splurge for our 46th wedding anniversary. The horizon stretches endlessly, a full moon reflects on the ocean, waves roll in with steady crashing, and I can’t help but reflect on our life together.
 
You may wonder - what does being married since the Carter administration have to do with commercial real estate? 
 
Bear with me. I believe who you love and with whom you choose to spend your life matters foundationally to building a successful career. In my case, Carla’s patience, wisdom, and encouragement have been the bedrock under everything I’ve accomplished in brokerage. And along the way, I’ve learned a few lessons that apply equally well to marriage and to commercial real estate.
 
Commitment Outlasts Market Cycles
 
Marriage requires commitment - not just when things are easy, but through the tough times too. Real estate is no different. Since I began in the early 1980s, I’ve watched interest rates soar, the savings and loan crisis unfold, bubbles inflate, and recessions squeeze the market. Through it all, commitment - whether to a client, a property, or the process - proved more valuable than chasing short-term gains. Just as in marriage, staying the course yields long-term rewards.
 
Communication is Everything
 
After 46 years, Carla and I still occasionally misunderstand each other. But we’ve learned to keep talking, keep listening, and keep clarifying. The same principle applies in commercial real estate. Deals collapse when communication falters. Clients don’t expect perfection; they expect honesty. A simple phone call explaining a setback can preserve trust better than any contract clause.
 
Patience Produces Fruit
 
No one celebrates 46 years without patience. There were times when raising kids, building careers, and paying bills felt overwhelming. But patience - trusting that small investments of time and effort compound - got us through. Commercial real estate rewards patience as well. Transactions can drag on, negotiations can stall, and entitlement processes can feel endless. Yet patience, paired with persistence, is often the difference between a failed deal and a successful close.
 
Shared Values Create Alignment
 
Carla and I built our life on shared values: faith, family, and integrity. Those values guided decisions on where to live, how to raise children, and even how to face hardship. In brokerage, I’ve found that values alignment with clients is equally important. Not every prospect is a fit. When you align with those who share your values - fairness, transparency, long-term thinking - the relationship flows, and the work is more rewarding.
 
Adaptability is Survival
 
Marriage is a constant process of adaptation. People grow, circumstances shift, and unexpected challenges arise. Carla and I had to adapt when careers changed, when children left home, and when new seasons of life arrived. In real estate, adaptability is equally critical. A strategy that worked in one market cycle may not work in another. Brokers who survive are those who adjust without abandoning their foundation.
 
Closing Reflection
 
Looking out at the Pacific, I’m struck by how steady and timeless it feels. Yet even the ocean is always in motion, waves constantly breaking and reforming. That’s marriage. That’s commercial real estate. Both require a balance of commitment and flexibility, patience and action, values and adaptability.
 
As I celebrate 46 years with Carla, I’m reminded that no career is built in isolation. The relationships that anchor us at home often provide the resilience and perspective we need in business. Success, in life and in real estate, rests not only on the deals we make but on the people who walk with us through the journey.

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.
 
 

From Kitchen Table to Generational Wealth – The Real Estate Journey of Family-Owned Businesses

Every thriving Southern California manufacturing or logistics company started somewhere—often at a kitchen table or in a garage. What happens between that first spark of an idea and the eventual decision to sell the company is a fascinating—and often overlooked—journey. The throughline? Real estate.
 
The Stages of Business Growth and Real Estate Decisions
 
The Idea Stage. Home-Based Operation. Most businesses start small. At this stage, real estate decisions are limited—but the dream of expansion is already forming.
 
Lease vs. Buy. The First Big Decision
As soon as a company outgrows the home, it’s time to lease or buy space. Leasing provides flexibility, but ownership plants the first seeds of wealth building.
 
Owning Your Building. Many family operators eventually buy the building they occupy. This decision transforms monthly rent payments into an appreciating asset that can outlast the business itself.
 
Growth Through Expansion or Acquisition. Success brings complexity—hiring more people, adding machinery, opening new locations, or acquiring competitors. Each move requires thoughtful real estate strategy.
 
Exit Planning and the Role of Real Estate. Eventually, founders face succession or sale. If selling to a strategic operator, the real estate may be carved out of the deal. If selling to private equity, the real estate is often critical to their investment thesis.
 
The Hidden Lesson
 
In many cases, I’ve seen the real estate owned by the business worth far more than the operation itself. That building becomes not just a workplace but a long-term family asset, a hedge against business cycles, and a powerful vehicle for generational wealth.
 
Closing Thought
 
The journey of a family-owned business in Southern California is never just about products, people, or profits—it’s also about property. Whether starting in a garage or exiting through a private equity sale, real estate is the silent partner that can shape the legacy of a business for generations.
 
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.

Consistency, Authenticity, and Relevance: Why I Post Commercial Real Estate Content

In 2009, I tried something new. While many of my colleagues were still marketing with postcards and cold calls, I started a blog called Location Advice. It was not common at the time for commercial real estate brokers to share insights publicly, but I wanted a way to connect with owners, occupants, and other brokers beyond the usual handshake or phone call.

That experiment led to 2013, when I launched TUESDAY Traffic Tips, short YouTube videos on the nuts and bolts of brokerage. I posted every week. No studio. No script. Just a consistent commitment. Looking back, I was one of the first commercial real estate brokers in the country to post content this way. That consistency opened doors, including this very column. I can thank Twitter, now X, for the introduction that connected me to the Southern California News Group.

Why I Did It

The reason was not followers, likes, or clicks. I believed that visibility builds credibility, and credibility leads to trust. By showing up online with useful ideas, I could create value for my audiences of owners, occupants, and brokers before we ever sat across a table together.

What Makes Content Memorable

Fifteen years later, I have learned that memorable content comes down to three qualities:
• Consistency — Show up regularly. People may not read every post or watch every video, but they notice if you keep showing up.
• Authenticity — Be yourself. Clients connect with real stories and honest observations, not polished perfection.
• Relevance — Speak to the audience you serve. Commercial real estate is not about abstract theories. It is about space, timing, and decisions that affect real businesses and families.

The Payoff

Social media has never been about shouting into the void. It is about building trust at scale. Over the years, people who first discovered me through a blog post or video have become clients, colleagues, or referral sources. Others simply shared an article that resonated. Either way, the ripple effect continues.
Here is the takeaway. If you want your content to stand out in commercial real estate, or in any field, focus less on going viral and more on showing up. Be consistent. Be authentic. Be relevant. Over time, those three qualities create a brand people trust.

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 Great Space Recalibration

Commercial real estate in Southern California has always reflected the ebbs and flows of business confidence.
 
Today, across industrial buildings , office suites, and everything in between, we are in the middle of what I call “The Great Space Recalibration.” Companies are rethinking how much space they need, what kind of space they want, and how to make their real estate align with a changed economic landscape.
 
Industrial: From Expansion to Efficiency. For the past decade, industrial tenants in the Inland Empire and Orange County raced to secure more square footage. E-commerce boomed, imports through the ports surged, and vacancy rates fell to record lows. But the story has shifted.
 
Instead of expanding, many manufacturers and distributors are now optimizing. Automation, robotics, and better inventory management allow them to do more with less. A tenant that once needed 200,000 square feet may be comfortable in 150,000 if it’s more efficient space. Landlords, who grew accustomed to quick leases and rising rents, are now negotiating harder and offering concessions that were unthinkable just two years ago.
 
Office: The Hybrid Question. The office market has undergone an even more dramatic recalibration. Remote and hybrid work are here to stay, and companies continue to evaluate their footprints. In Orange County, for example, tenants are renewing—but often for less space. A law firm that once leased three full floors may decide two is sufficient, with one floor redesigned into collaborative areas and hot-desking stations.
 
This trend isn’t simply about cost savings. It reflects a cultural shift: offices are no longer just places to house employees, but tools to attract talent and foster collaboration. The most in-demand spaces are those that are flexible, amenity-rich, and located in environments employees actually want to come to.
 
Retail: Leaner but Smarter. Retail has been recalibrating for years. E-commerce forced many stores to shrink their footprints and focus on experiential elements that can’t be replicated online. The winners are not necessarily the ones with the largest boxes but the ones who integrate online and in-person sales seamlessly. Think of a 5,000-square-foot store doubling as a distribution hub, pickup center, and brand experience all at once.
 
Why This Matters. The Great Space Recalibration has implications for everyone involved in commercial real estate:
• Occupants must carefully assess their true needs. More space is not always better if it is underutilized or expensive to operate.
• Owners must adapt to slower leasing cycles, more tenant scrutiny, and a greater demand for flexibility.
• Investors must look beyond raw square footage and ask: how usable, adaptable, and future-proof is this space?
 
Looking Ahead. If the past decade was defined by expansion, the next may be defined by efficiency. Companies are not retreating from real estate—they are right-sizing. They are using space as a strategic tool rather than just an overhead expense.
 
In Southern California, where land is scarce, costs are high, and innovation is constant, this recalibration may ultimately lead to a healthier balance. Tenants will get the space they truly need. Owners will invest in making buildings more flexible, sustainable, and tech-enabled. And communities will benefit from properties that serve the market more intelligently.
 
The Great Space Recalibration is not a crisis. It’s an adjustment. And like all adjustments in real estate, it will reward those who recognize the shift early and adapt accordingly.

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.