Every August, more than a million
people descend on Des Moines, Iowa, for one of the most iconic celebrations of
agriculture, tradition, and Americana: the Iowa State Fair.
You’ll find butter cows.
Deep-fried Snickers. Prize-winning pigs. And yes - this year, you’ll find us
there too.
You may be wondering, we have a
fair in Orange County, why Iowa? Well, we’re trying to see all fifty states.
What better way to visit Iowa, than the state fair we reasoned.
Now, I’ll admit - on the
surface, the Iowa State Fair has very little to do with commercial real estate.
But after years in this business, I’ve learned that the best lessons don’t
always come from lease negotiations or cap rate spreadsheets. Sometimes, they
come from places you least expect - like from livestock barns and lemonade
stands.
As I ponder our attendance, I
anticipate five surprisingly relevant lessons the Iowa State Fair has to offer
CRE professionals, property owners, and business leaders alike:
Visibility Is Power. At the fair, everyone shows up. Presidential candidates. Local
farmers. Funnel cake vendors. It’s a stage - and the people who stand out are
the ones who lean into the spotlight.
The same applies to commercial
real estate. If you want the business, you have to be visible. Post on
LinkedIn. Return your calls. Walk the industrial park. Knock on the neighbor’s
door. You never know which conversation leads to your next transaction.
Show up often enough, and
eventually you’re the broker they think of first.
Specialization Wins Blue
Ribbons. The fair isn’t about
generalists. It’s about champions - best in breed, best in show, best in pie
crust.
In commercial real estate, the
same holds true. If you’re trying to represent office tenants, retail
developers, and industrial buildings owners all at once, you’ll get lost in the
crowd. But if you’re the go-to broker for aerospace facilities or cold storage
occupants? Now you’re speaking the judge’s language.
Specialists don’t just compete -
they win.
Know Your Audience - and Entertain
Them. The Iowa State Fair majors in
audience engagement. Every booth, every announcer, every exhibitor is tuned
into one question: “How do I draw them in?”
In our business, whether you’re giving
a tour or sending a proposal, you need to ask the same thing. Are you
connecting with your audience? Are you using stories, analogies, visuals — or
just burying them in data?
The best brokers aren’t just
experts. They’re entertainers, educators, and translators.
Process Beats Flash. Behind the corn dogs and concerts is a finely tuned operation. The
fair doesn’t happen by accident - it’s a system of logistics, preparation, and
process.
The same is true of great
brokerage. A successful transaction isn’t the result of charisma alone. It
comes from structured follow-up, solid documentation, strategic planning, and
diligent execution.
Flash may get attention. Process
gets results.
Success Is Grown, Not Grabbed. At the fair, everything takes time. Blue ribbon hogs aren’t raised in
a week. The best corn isn’t grown overnight. These results are the end of a
long, consistent season of effort.
Likewise, in commercial real
estate, the big wins come from relationships planted and nurtured over time —
referrals, repeat clients, neighbors who saw the sign and remembered your name.
If you’re in it for the long
haul, you’ll build something worth exhibiting.
Final Thoughts From Des Moines.
So yes — I’m heading to the
Iowa State Fair this week. I’ll enjoy the food, the spectacle, and hopefully
the butter cow. But I’ll also be paying attention — because success leaves
clues, whether you’re watching a 4H goat show or leading a facility tour in
Anaheim.
If you’re in commercial real
estate - or any people-driven business - maybe the fair has something to teach
you, too.
And if not… well, there are
always the corndogs.
For
years, I’ve helped business owners wrestle with one of the biggest decisions
they’ll ever face about their real estate: Should we buy our building or lease
it?
At
first glance, ownership might seem like the obvious winner—build equity,
control your destiny, no landlord breathing down your neck. But like most
things in commercial real estate, the decision isn’t black and white.
What
many people don’t see right away are the hidden costs—financial, operational,
and emotional—that come with each option. Here’s what I’ve learned over the
past four decades.
Opportunity Cost: Where Is Your Capital Working Hardest?
Buying
a building—even through an SBA loan with just 10% down—still requires capital
that could be deployed elsewhere. That down payment, along with closing costs,
reserves, and possible improvements, can total hundreds of thousands of dollars
even on a modest acquisition.
Takeaway:
The money you tie up in real estate could be your most expensive investment if
it limits your flexibility elsewhere.
Monthly Cost: Lease vs. Mortgage Isn’t Apples to Apples
Many
business owners compare lease rates to monthly mortgage payments and assume
that ownership is the better deal—especially if mortgage payments appear lower
than quoted lease rates. But that comparison misses critical details.
In
today’s market—where interest rates remain elevated and property values are
still adjusting—the cost of ownership is often more expensive than leasing. And
the difference is even more pronounced when you factor in all the additional
expenses:
• Debt service (principal and interest)
• Property taxes
• Insurance
• Repairs, maintenance, and capital reserves
(think roof, HVAC, plumbing, parking lots)
Even
with SBA financing—which only requires 10% down—these costs add up quickly and
can exceed comparable lease obligations.
And
let’s not forget: most industrial leases today are structured as triple net
(NNN) leases, meaning tenants pay base rent plus property taxes, insurance, and
maintenance.
So if
you’re comparing a lease rate to ownership, you must also account for the fact
that those same costs will be your responsibility as an owner—on top of
your mortgage.
Finally,
SBA loans often come with variable interest rates after a fixed period,
introducing future financial risk. And rising insurance premiums and
unpredictable tax assessments only add more volatility.
Lease Flexibility Can Be Strategic
Leasing
doesn’t mean “wasting money”—it means buying flexibility. If your company is
growing, shrinking, or evolving, locking yourself into ownership may actually
become a constraint.
Leases
allow you to pivot: to sublease, renew, relocate, or negotiate tenant
improvements. And in many cases, those improvements are paid for by the
landlord, not out of your own pocket.
Takeaway:
In a rapidly changing market, the ability to adapt might be worth more than a
locked-in mortgage rate.
Asset Appreciation Is Not Guaranteed
Many
people view real estate ownership as a no-brainer because of “appreciation.”
But just like with any asset class, there are cycles. Industrial property in
Southern California may have doubled in value over the past decade—but not all
markets or building types are created equal.
If your
business is relying on future appreciation to justify the purchase, you’re
speculating, not just investing.
Takeaway:
A good business decision should pencil out even if the
building never appreciates.
Final Thoughts: The Right Answer Depends on the Right Questions
I’m not
here to argue for or against ownership. I’ve advised clients to buy when it
made sense—and advised others to lease when that fit. But too often, the
decision is made emotionally or simplistically: “I hate my landlord” or “I want
to build equity.” That’s not enough.
What’s
your growth trajectory? How much capital do you need to keep liquid? How long
will this facility serve your needs? What are your exit plans?
Owning
vs. leasing isn’t just a real estate decision—it’s a business strategy. One
that deserves more than a gut feeling.
After over four
decades in commercial real estate brokerage and ten years writing this column,
I thought I knew how to tell a story. Then I decided to write a book.
And I’m pleased to
say it’s published and available on Amazon in paperback or Kindle.
What started as a
compilation of anecdotes turned into a deep dive into the systems, habits, and
turning points that shaped my career. I titled the book The SEQUENCE – A
Personal Journey and Proven Framework for Commercial Real Estate Brokerage
Success,
and along the way, I learned a lot more than I expected. About writing. About
business. And about myself.
Here are ten lessons
from the journey:
1.
Writing a book is different than writing a column. A column is a
sprint. A book is a marathon. In a column, you land your point quickly. A book
requires structure, pacing, and a deeper connection with your reader.
2.
Structure matters more than you think. You can’t just throw stories on a
page and hope they stick. My book follows a framework I call SEQUENCE—a
step-by-step system I’ve used to manage deals. That structure kept me on track
and helped readers follow along.
3.
Your voice gets clearer the longer you write. At first, I tried to sound like an
“author.” Eventually, I realized my own voice—the same one I use in this
column—is what people want.
4.
The best stories are the real ones. Readers remember the deal that almost
fell apart, the client who became a friend, or the early mistake that became a
turning point. Vulnerability beats polish every time.
5.
Time is the biggest hurdle.
Writing a book while
managing a full-time career isn’t easy. But I treated it like a client
appointment: scheduled, protected, and consistent.
6.
Good editing is worth its weight in gold. My first draft was… fine. My final
draft? Clearer, tighter, and much more readable—thanks to a professional edit
and some tough love from early readers.
7.
Legacy is a powerful motivator.
I wrote the book to
help other brokers, yes—but I also wrote it for my grandkids. Every chapter is
addressed to them. That perspective changed everything.
8.
Publishing is easier—and harder—than ever. Technology makes it simple to
self-publish. But standing out? That’s another story. Writing the book is just
the beginning of sharing it.
9.
Your network matters more than your launch plan. Colleagues,
clients, friends, and family became my first readers, reviewers, and
cheerleaders. A strong community beats clever marketing.
10.
We all have a book in us. Whether it’s business lessons, life
stories, or personal insight—everyone has something worth writing down. If
you’ve been thinking about it, start. Even a page a day adds up.
Writing a book
forced me to slow down and reflect. It reminded me why I love what I do—and how
much I still want to share.
If you’re on a
similar journey, I’m cheering you on. It’s hard. It’s worth it. And you’ll
learn more than you ever imagined.
