What Would Our Industrial Market Look Like Without Anduril?

I have watched, with interest, the evolution of a company in Orange County: Anduril.
 
If you are unfamiliar with the name, you are not alone. They have quietly become one of the true industrial market movers.
 
With a growing footprint in Santa Ana, Costa Mesa and Irvine, a massive campus under construction near Long Beach Airport, and a huge bet on Columbus, Ohio, the company has single-handedly changed our Class A vacancy picture.
 
Factor in all of the supporting companies that provide component parts to Anduril, and you have the industrial demand drivers we have been missing for the past four years.
 
So, how would our industrial market be different without Anduril, I wondered?
 
Bear with me as I reason this with you.
 
First, take away the space.
 
That alone would matter. Anduril has absorbed, and is continuing to absorb, a substantial amount of industrial and flex space in Orange County and beyond. Remove that demand from the equation and the vacancy picture changes immediately. Buildings that are occupied today would still be sitting on the market. Buildings that are under construction would have a much harder time finding their next user. And some of the newer Class A product that has benefited from this demand would be facing a much softer leasing environment.
 
But that is only part of the story.
 
The bigger issue is what I would call industrial gravity.
 
When a company like Anduril grows, it does not grow alone. It creates a pull. Suppliers follow. Contractors follow. Specialized service firms follow. Engineers, fabricators, technology vendors and support companies begin to cluster around the core business. One company’s expansion becomes a broader ecosystem of demand.
 
That matters because industrial real estate does not just respond to one user. It responds to the network around that user.
 
Without Anduril, much of that network would either not exist here or would be significantly smaller. The knock-on effect would be felt in leasing, in absorption, in new development and in overall market confidence.
 
And that is really the key word: confidence.
 
For the past four years, industrial brokers, landlords and developers have been asking the same question in different forms: where is the next real demand?
 
We have had plenty of macro stories. E-commerce was huge. Logistics remained active. Some reshoring took place. Port-related activity continued to support the region. But the market still needed a fresh, meaningful demand driver, something beyond the usual suspects.
 
Anduril has become that driver.
 
What makes the company especially interesting is that it is not simply a traditional industrial user. It sits at the intersection of advanced manufacturing, defense technology, engineering and software. That combination is important because it fits Southern California better than many people might assume. We have the talent. We have the aerospace and manufacturing heritage. We have the suppliers. We have the universities. We have the ports. We have the infrastructure.
 
In other words, we have the ingredients for this kind of company to thrive.
 
If Anduril had been founded somewhere else, the industrial market here would almost certainly look different. Vacancy would be a higher. Leasing velocity would be a slower. Some of the supporting companies that now orbit around Anduril might be located in another state. And perhaps most importantly, we would have one less example of a major growth company choosing Southern California for advanced manufacturing.
 
That matters.
 
Because one company like this can have a multiplier effect that is far greater than the square footage it occupies. One large requirement can lead to many smaller ones. One anchor tenant can create a reason for others to follow. One expanding company can help establish the credibility of an entire submarket.
 
So when I ask myself what our industrial market would look like without Anduril, the answer is simple: weaker.
 
Not broken. Not empty. But weaker.
 
And in a market where every bit of demand matters, that difference is significant.
 
Anduril has not solved every challenge in Southern California industrial real estate. No single company can. But it has helped fill a gap that we have been missing for some time. It has brought real absorption, real construction, real supporting demand and real optimism to the market.
 
That is not a small thing.
 
Sometimes the most important companies in a market are not the loudest ones. They are the ones quietly changing the numbers, changing the conversation and changing what people believe is possible.
 
Anduril has done exactly that.
 
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 Unintended Consequences of Writing a Book

When I published The SEQUENCE a year ago, I thought I knew what would happen.

 I hoped a few commercial real estate professionals would buy the book, find value in it, and perhaps improve their careers. I expected it to generate a conversation or two, maybe even a speaking engagement.

What I didn’t expect were the unintended consequences.

Writing a book has very little to do with selling books. Instead, it accelerated my credibility.

Fellow brokers no longer asked, “How long have you been in the business?” They simply assumed I had something worth saying. Conference organizers began calling. Podcast invitations appeared in my inbox. Brokers from across the country contacted me. Not to discuss a transaction, but to discuss a concept. 

The book opened doors that years of production alone never had. 

More surprising was what it did for me. 

Writing forces clarity. You cannot hide behind vague ideas when they’re staring back at you from a blank page. Every principle had to survive the question: “Would I stake my reputation on this?” If the answer wasn’t yes, it didn’t make the manuscript. 

The result wasn’t just a better book. It was a better framework for how I train new professionals, mentor younger brokers, and even evaluate my own decisions. 

Then came the biggest surprise. 

The book wasn’t the destination. It was the foundation. 

It has evolved into training programs, keynote presentations, workshops, interviews, articles, and conversations I never could have imagined when I typed the first chapter. Ideas that once lived only in my head now have a life of their own. 

That’s the funny thing about creating something meaningful. You think you’re producing a product. In reality, you’re building a platform. 

Whether you’re in commercial real estate, law, accounting, architecture, or any profession built on expertise, don’t underestimate the value of capturing what you’ve learned. It doesn’t have to be a book. It could be a series of articles, a newsletter, a podcast, or a class. 

The act of organizing your knowledge changes you. Sharing it changes how others see you. 

The unintended consequence isn’t that people begin viewing you as an expert. 

It’s that you finally become intentional about the expertise you’ve been building all along. 

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.

Relationships Outlast Transactions

A recent conversation caused me to reflect on something I hadn’t considered before.
 
Over more than four decades in commercial real estate, I’ve represented companies through expansions, contractions, acquisitions, renewals, relocations and the occasional crisis. Some clients have come and gone. Others have remained for decades.
 
It made me wonder what separates a transaction from a relationship.
 
Early in my career, I believed clients hired me because I understood industrial real estate. I knew market rents, vacancy rates, lease language and negotiation strategies. Those things certainly mattered. But they weren’t why clients kept calling.
 
Over time, I realized something far more important was taking place.
The longer a relationship lasts, the less it has to do with real estate.
 
Careers evolve. Companies change ownership. Executives retire. New leaders emerge. Families grow. Priorities shift. Markets rise and fall. Through all of it, one thing remains remarkably consistent. People want someone they trust to help them make important decisions.
P
Trust isn’t built over lunch.
It isn’t built on the golf course.
It certainly isn’t built during a listing presentation. Trust is accumulated slowly. It comes from returning phone calls, delivering difficult news honestly, admitting when you don’t know an answer and placing the client’s interests ahead of your own. It comes from showing up consistently, year after year, regardless of whether a commission is on the horizon.
 
One of the greatest misconceptions about commercial real estate is that we’re in the transaction business.
We’re not. We’re in the relationship business. Transactions are simply milestones along the way.
 
Looking back, the deals I remember most aren’t necessarily the largest or most profitable. They’re the ones that became something much bigger than a signed lease or a closed escrow. They marked the beginning of relationships that have weathered changing markets, changing leadership and changing circumstances.
 
I’ve discovered that successful careers aren’t measured solely by square footage leased, buildings sold or commissions earned.
They’re measured by the number of people who continue to call long after the ink has dried because they value your judgment as much as your ability to negotiate.
 
Buildings eventually change hands.
Relationships, if they’re cared for properly, can last a lifetime.
 
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.
 
 

Social Media Marketing

In 2009, when our commercial real estate brokerage business resembled a post war apocalypse, my wife and I made a fateful decision. She went back to school to earn an advanced degree in apparel manufacturing at the Fashion Institute of Design and Merchandising, better known as FIDM, in Los Angeles. She loved every minute of it, graduated first in her class, and eventually opened a successful business crafting custom wedding handkerchiefs for brides in New Orleans.
 
You may be wondering what this has to do with commercial real estate. Indulge me.
 
One afternoon she returned from class with an idea.
 
“You need to start blogging.”
 
I had no idea what that meant, but I was curious.
 
She explained it this way. “Write about what you do. Post it online. Create a digital footprint.”
 
Then she coined a phrase I’ve never forgotten.
 
“Work out loud.”
 
Do the work once. Write about it. Let it live forever.
 
She was absolutely right.
 
Seventeen years later, I still publish a weekly commercial real estate blog. This newspaper column grew from that effort. LinkedIn, X, Facebook, YouTube and, more recently, TikTok have become extensions of that same philosophy. Instead of hoping people discover what we do, we show them.
 
So what have all these years of marketing commercial real estate through social media taught me?
 
First, consistency beats brilliance. One thoughtful post every week for years will outperform a burst of daily activity followed by months of silence.
 
Second, educate before you promote. People rarely share advertisements, but they frequently share ideas that help them make better decisions.
 
Third, authenticity wins. You don’t have to be the funniest, loudest or most controversial voice online. You simply need to be genuine and useful.
 
Fourth, your digital reputation often precedes your personal introduction. Many prospective clients know more about you before the first meeting than they ever could have learned from a brochure or résumé.
 
Finally, remember that social media is not a substitute for relationships. It is simply an amplifier. Lunches still matter. Phone calls still matter. Handwritten notes still matter. Social media simply keeps you top of mind between those interactions.
 
I’ve often been asked whether blogging, posting and producing videos directly resulted in business. The answer is yes, but perhaps not in the way you might expect.
 
Rarely has a client called and said, “I hired you because of one post.”
 
Instead, they say something far more meaningful.
 
“I feel like I already know you.”
 
Trust is built long before the first assignment is signed.
 
My wife recognized that nearly two decades ago. She saw that sharing knowledge would create opportunities that cold calls alone never could. Looking back, her advice may have been one of the best marketing lessons I’ve ever received.
 
Sometimes the most valuable commercial real estate advice doesn’t come from another broker. Sometimes it comes from someone who simply encourages you to work out loud.

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 Trades

“Don’t forget about the trades.”

The reminder came from our neighbor, Rudy, a lifelong tradesman. If you’ve read this column for any length of time, you’ve heard me mention him before. He’s one of my biggest supporters, an avid reader, and every so often he’ll stop me to challenge something I’ve written or offer a perspective I hadn’t considered.

This time, his message was different.

There was pride in his voice, certainly. But there was also disappointment. His concern was that too many young people have been encouraged to pursue white collar careers while overlooking professions that literally built America. Plumbers. Electricians. Carpenters. Concrete finishers. Welders. Heavy equipment operators. HVAC technicians. The list goes on.

His words stuck with me.

Coincidentally, just days earlier I had listened to a long-form conversation between former Navy SEAL Sean Ryan and Mike Rowe, best known for Dirty Jobs. Rowe has spent years advocating for skilled trades through his mikeroweWORKS Foundation, whose mission is to close America’s skilled labor gap, challenge the stigma surrounding vocational careers, and promote the value of hard work.

The timing was hard to ignore.

Perhaps the universe was nudging me in the same direction as Rudy.

You may be wondering what any of this has to do with commercial real estate.

Everything.

Every industrial building we lease, every office we sell, every warehouse we reposition, every manufacturing facility we tour exists because skilled tradesmen and women transformed a set of architectural drawings into a functioning building.

When a company relocates, it isn’t simply a lease signing. Electricians install power. Carpenters build offices. Concrete crews reinforce slabs. Dock equipment is installed. Fire sprinkler contractors make modifications. HVAC specialists rebalance the system. Painters, flooring contractors, roofers and dozens of other trades bring a vacant shell to life.

Without them, our transactions would remain little more than paper.

The same is true for manufacturing. Machines don’t maintain themselves. Distribution centers don’t repair themselves. Buildings age. Equipment wears out. Communities grow because skilled people know how to build, repair and improve them.

Yet somewhere along the way, we’ve unintentionally created the impression that success only comes with a four-year degree and a desk.

That simply isn’t true.

Many skilled trades provide outstanding incomes, entrepreneurial opportunities, job security and the satisfaction of creating something tangible at the end of every day. They also offer something increasingly rare: demand that continues to outpace supply.

Commercial real estate professionals witness this every day. We don’t simply sell buildings. We watch businesses expand because talented people make products, move freight and solve problems with their hands as well as their minds.

Rudy reminded me of something important.

The trades deserve more than our appreciation. They deserve our encouragement.

If you’re a parent, expose your children to the possibilities. If you’re an employer, invest in apprenticeships. If you’re a business leader, celebrate the craftsmen and women whose work makes yours possible.

America has always been built by people willing to roll up their sleeves.

Let’s make sure the next generation knows there is honor, opportunity and tremendous value in doing exactly that.

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 is more American than the Fourth of July?

Our nation’s great experiment celebrated its 250th birthday this weekend. Spending the holiday in America’s heartland, Omaha, Nebraska, made the occasion even more meaningful.
 
Carla and I have now visited 47 of our 50 states. Only Kansas, North Dakota, and South Dakota remain. We hope to complete the list by 2027.
 
You may be wondering what any of this has to do with commercial real estate.
 
Stay with me.
 
Long flights create uninterrupted thinking time. Between hours on airplanes and the opportunity to train several of our younger associates during the trip, I found myself reflecting on the lessons I have learned during the past 41 years in commercial real estate brokerage.
 
Some came through success. Most came through mistakes.
 
Somewhere over the middle of America, I asked myself a simple question.
 
If I could sit down with the young man who entered this business in 1984, what would I tell him?
 
By the time we landed, I had my answer.
 
1. Every deal has a clock. Timing drives every transaction. Learn to recognize it before everyone else.
 
2. People rarely tell you the whole story first. Listen carefully, ask thoughtful questions, and dig beneath the surface. The real assignment usually comes later.
 
3. Never confuse activity with progress. Busy does not always mean productive. Focus on the work that actually moves a deal forward.
 
4. The best brokers ask uncomfortable questions early. Honest conversations save time, build trust, and prevent surprises.
 
5. Control the process, not the outcome. You cannot control markets or other people. You can control your preparation, communication, and professionalism.
 
6. Hope is not a business strategy. Hope without a plan is simply wishing. Replace optimism with action.
 
7. Every transaction creates your next transaction. Great service leads to referrals, repeat business, and a reputation that compounds over time.
 
8. Your calendar predicts your income. How you spend your time today usually determines your success six months from now.
 
9. Your pipeline is always telling you the truth. A healthy pipeline creates confidence. An empty one is an early warning sign that prospecting has slowed.
 
10. Consistency beats intensity. Extraordinary careers are built through ordinary disciplines repeated every day.
 
As I looked out the airplane window at the farms stretching across America’s heartland, I realized that while our business has changed dramatically since 1984, the fundamentals have not.
 
Technology has evolved. Markets have changed. Artificial intelligence is transforming the way we work.
 
But serving people, solving problems, building trust, and showing up consistently remain timeless principles.
 
Those lessons came to me somewhere over the middle of America.
 
Perhaps they are worth passing along.

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.
 
 

A Little Roto Tilling

As I sit here wondering what, in my world, is worthy of a column, my mind keeps wandering. Artificial intelligence. Advanced manufacturing. The seemingly remarkable strength of the industrial real estate market. Training the next generation of commercial real estate professionals. The economy. Interest rates. Foreign wars. Supply chains. It is enough to make anyone’s head spin.
 
Normally, I would pick one subject, dig into it, and share my thoughts. This week, however, I have decided to do something different. Instead of grabbing a shovel and digging one deep hole, I am reaching for the roto tiller. I am going to stir up several patches of soil and see what grows.
 
Artificial intelligence is no longer something on the horizon. It has arrived. Every week another platform promises to make us more productive, more informed, and more efficient. I have embraced it as a tool, not a replacement. It helps me organize thoughts, summarize information, and even challenge my own assumptions. What it cannot do is replace experience, judgment, relationships, or trust. Those qualities are still earned the old fashioned way.
 
Speaking of change, manufacturing continues to surprise me. For years we heard about factories leaving the country. Today I see companies investing in automation, robotics, and advanced production techniques. Many manufacturers are expanding because they want greater control over their supply chains and want production closer to their customers. That trend has created opportunities throughout Southern California’s industrial market.
 
The industrial real estate market has also shown remarkable resilience. While headlines often focus on office vacancies or uncertainty in other property types, industrial space continues to benefit from strong underlying demand. Yes, tenants are becoming more selective. Yes, some markets are seeing more available space than they did a year ago. Even so, well located industrial buildings continue to attract attention from both users and investors.
 
One topic that has become increasingly important to me is training. After more than four decades in commercial real estate, I have learned that experience is valuable only if you are willing to pass it along. Watching younger professionals develop confidence and competence may be one of the most rewarding parts of this business. Knowledge does little good if it stays locked inside one person’s notebook.
 
Then there is the economy. Depending on which report you read or which television channel you watch, everything is either wonderful or headed for disaster. Reality usually lives somewhere in the middle. Business owners are still making decisions. Companies are still expanding, consolidating, buying, selling, and leasing. They simply want more information before making those decisions. Uncertainty has not stopped activity. It has simply lengthened the decision making process.
 
Finally, there is the rest of the world. International conflicts, changing trade policies, and political uncertainty remind us that commercial real estate does not operate in a vacuum. Decisions made thousands of miles away often find their way into conversations around conference tables here at home. Markets dislike uncertainty, but they also have an incredible ability to adapt.
 
Perhaps that is the common thread running through all these seemingly unrelated topics. Adaptation. Whether it is technology, manufacturing, commercial real estate, or our personal careers, those who continue learning and adjusting are usually the ones who thrive.
 
Sometimes it is healthy to put away the shovel and pick up the roto tiller. You may not dig as deeply, but you uncover a lot of interesting ground.
 
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.
 
 

Father’s Day Lessons from the U.S. Open

I lost my dad six years ago. He was a really fine golfer. Not a casual weekend player, but the kind of golfer who understood the game, respected its traditions, and appreciated the challenge that comes from trying to master something you never truly conquer.

It seemed fitting that I spent part of today watching the U.S. Open Championship.

After breakfast with family, it was time to tune in. Each year, the tournament concludes on Father’s Day, and this year’s finish did not disappoint. It was a thriller. Wyndham Clark captured the championship with a one-shot victory that came down to the 72nd hole. Under immense pressure, he trusted his swing, trusted his preparation, and walked away with one of golf’s most coveted trophies.
You may be wondering what any of this has to do with commercial real estate.
Indulge me as I draw a few parallels.

Mental Toughness Matters. The U.S. Open is often described as golf’s toughest test. The rough is thick. The greens are unforgiving. One poor decision can undo four days of brilliant play.

Commercial real estate isn’t much different.

Deals fall apart. Financing changes. Buyers hesitate. Sellers get emotional. Tenants rethink their plans. Markets shift.

The brokers who survive, and thrive, are not necessarily the smartest or the most talented. Often, they’re simply the most resilient. They understand that setbacks are part of the process and that success frequently belongs to those who keep moving forward after disappointment.

Timeless Fundamentals Win. One of the things I love about championship golf courses is that many were designed long before modern technology changed the game. They were built before diesel-powered earthmovers, GPS-guided grading equipment, and computer modeling.

Yet they continue to challenge the world’s best players.

Why?

Because great design never goes out of style.

The same can be said for commercial real estate. Technology changes. Marketing platforms evolve. Data becomes more sophisticated.

But the fundamentals remain remarkably consistent.

Build relationships. Create trust. Understand your client’s needs. Communicate clearly. Solve problems. Follow through.

Those principles worked thirty years ago. They’ll work thirty years from now.

World-Class Competition. The U.S. Open attracts the best golfers on the planet. Every player in the field has talent. Every player has won somewhere. Every player believes they can win.
Commercial real estate can feel the same way.

In virtually every market, there are excellent brokers competing for listings, assignments, and opportunities. The difference between winning and losing is often measured in preparation, persistence, and execution, not raw ability.

When everyone is talented, details matter.

There Is Only One Trophy. At the end of the week, there is only one champion.
Hundreds of players compete. One hoists the trophy.

Brokerage isn’t winner-take-all to the same extent, but there is an important lesson here. Every assignment has a successful outcome. Every client ultimately selects a representative. Every building gets sold or leased by someone.

You don’t have to win every opportunity.

But you do need to be prepared when your opportunity arrives.

Trust the Process. Perhaps the greatest lesson golf teaches is the importance of process.
The best players focus on preparation, routine, and execution. They cannot control every bounce, gust of wind, or lucky break. They can only control their process.

That lesson resonates deeply with me.

Throughout my career, I’ve learned that the best brokers focus less on outcomes and more on controlling the process. Ask the right questions. Qualify carefully. Stay organized. Communicate consistently. Do the work.

When you trust the process, good outcomes tend to follow.

A Father’s Legacy. As I watched today’s final round, I couldn’t help but think about my dad.
Golf was one of the many lessons he left behind. Not just how to swing a club, but how to handle adversity, maintain composure, and compete with integrity.

Those lessons extend far beyond the golf course.

They apply in business. They apply in life. They certainly apply in commercial real estate.
So today, as we celebrate Father’s Day, I’m grateful for family, grateful for memories, and grateful for the enduring lessons that fathers pass along, sometimes intentionally, sometimes simply by example.

And if those lessons happen to come while watching the U.S. Open on a Sunday afternoon, all the better.

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.
 
 

Lee Summit

I’m penning this from a hotel room overlooking Nashville, Tennessee. This year, our company re-routed our annual Summit from Las Vegas. I can’t quite see Broadway Street but I’m sure it’s sound asleep as it tends to stay up very late. My hope is it didn’t inflict too much damage on our attendees last evening, but I digress.
 
This year marks my umpteenth meeting - I stopped counting some time ago - but I’m excited to see old friends, meet some new ones, and learn a bit about all things commercial real estate.
 
As I start year 43 in this industry, here are five things I’ll anticipate. At this year’s Summit.
 
1. The Economy Will Remain the Headliner. No commercial real estate conference would be complete without experts armed with charts, graphs, and predictions. Interest rates, inflation, employment, consumer confidence, the war in Iran, and capital markets will all take center stage. While none possess a crystal ball, understanding the what’s happening around the nation, helps us make better decisions for our clients.
 
2. Industrial Real Estate Will Continue to Evolve. For years, industrial properties have been the darling of commercial real estate. While demand is returning, the conversation has shifted. Tenants and buyers are becoming more selective. New development has created competition in certain markets. Occupants are evaluating efficiency, automation, labor availability, and location more carefully than ever. The days of simply putting a sign on a building and watching tenants line up may be behind us.
 
3. Artificial Intelligence Will Be Everywhere. If the last three years were about discovering AI, the next few years will be about applying it. From underwriting, market analysis, vibe coding, marketing and client communications, artificial intelligence is becoming a meaningful productivity tool. It won’t replace brokers, investors, developers, or property managers, but it will likely replace those who refuse to learn how to use it.
 
4. Relationships Will Still Matter Most. Technology changes. Markets cycle. Interest rates rise and fall. What remains constant is the value of relationships. Many of these attendees and I started our careers together in the 1980s when our company expanded from one El Toro, California location. We’re over eighty offices strong now. Every conference reminds me that our business is ultimately a people business. Deals happen because of trust. Opportunities emerge because of connections. Careers are built one relationship at a time. Forty-two years into this profession, I am more convinced of that than ever.
 
5. I’ll Learn Something New. One of the reasons I continue attending events like this is simple: there is always something to learn. Sometimes it’s a new market trend. Sometimes it’s a fresh approach to solving a client’s problem. Occasionally, it’s a conversation in a hallway that sparks an entirely different way of thinking. The moment we believe we’ve learned everything is the moment we stop growing.
 
As I look out over Nashville and prepare for another Summit, I’m reminded that commercial real estate remains one of the most dynamic and fascinating industries imaginable. The buildings may change, the markets may shift, and the technology may advance, but the opportunity to learn, adapt, and serve clients remains as exciting today as it was when I started 42 years ago.
 
We’ll compare notes next week.

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.
 
 

Seeing Commercial Real Estate Through the Eyes of a Ten-Year-Old

We just spent a delightful week in Philadelphia and New York City with one of our grandsons.
 
You see, we made a promise to each of our six grandchildren: once they turn ten, we’ll take them anywhere in the United States they want to go. This year, two reached that milestone. One chose the Florida Keys so he could fish. The other wanted a completely different experience — a tour of two of America’s great cities.
 
We gladly complied.
 
You may be wondering what any of this has to do with commercial real estate. Bear with me. I’m getting there.
 
We flew to Philadelphia for three days and then boarded a train to New York City. What an experience! Once we arrived at Penn Station, we decided to walk to our hotel on 55th Street. Watching a ten-year-old, luggage in tow, encounter everything a big city throws at you was surprisingly similar to what many of our commercial real estate clients experience every day.
 
The noise. The crowds. The unfamiliar surroundings. The constant need to make decisions.
 
Which way do we go?
 
Should we cross here or wait?
 
Is this the right street?
 
How much farther?
 
What happens if we make a wrong turn?
 
As seasoned travelers, my wife and I were comfortable. We had a map. We understood the subway system. We knew where we were headed. Our grandson, however, was experiencing all of this for the first time.
 
Commercial real estate often feels exactly the same for business owners.
 
A company owner may know everything there is to know about manufacturing precision parts, distributing products, running a transportation company, or managing a successful service business. But when it comes time to lease a building, purchase a facility, negotiate a renewal, complete a sale, or evaluate expansion options, they’re suddenly in unfamiliar territory.
 
The stakes are high.
 
The terminology is different.
 
The process can seem overwhelming.
 
And one wrong turn can be expensive.
 
That’s where a good commercial real estate advisor comes in.
 
Our job isn’t simply to unlock doors and show buildings. It’s to serve as the guide. We help our clients navigate unfamiliar streets, avoid potential hazards, and arrive at the destination they’ve chosen.
 
Sometimes the value we provide is obvious. We identify a better building, negotiate a lower rent, or secure favorable terms. Other times the value is less visible. We help clients avoid costly mistakes they never knew were lurking around the corner.
 
Throughout our trip, our grandson asked dozens of questions.
 
“Why is that building so tall?”
 
“How do people know where to go?”
 
“Why are there so many people here?”
 
“What does that sign mean?”
 
I couldn’t help but think how similar those questions are to the ones I hear from business owners facing a commercial real estate decision.
 
“Why is the landlord asking for that?”
 
“What does this lease clause mean?”
 
“Should I lease or buy?”
 
“How much space do I really need?”
 
“What happens when the term expires?”
 
Questions are natural whenever you’re entering unfamiliar territory.
 
By the end of the week, our grandson was navigating subway stations, reading street signs, and moving through crowds like a seasoned traveler. He wasn’t an expert, but he was far more comfortable than when he arrived.
 
The same thing happens with clients. As they move through a transaction, confidence replaces uncertainty. Knowledge replaces confusion. The unfamiliar becomes familiar.
 
The trip reminded me that experience has tremendous value. What feels routine to us may be completely new to someone else. Whether it’s finding your way through Midtown Manhattan or negotiating a commercial lease, having a trusted guide can make all the difference.
 
And sometimes it takes seeing the world through the eyes of a ten-year-old to remember that.
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.
 
  

Tough Advice

One of the coolest things about doing the same thing for over four decades is that newer folks in the business often seek your advice. This week, the call came from someone who is certainly not a novice, but found himself in an uncomfortable situation.
 
He has a client who runs a successful manufacturing company and has for years. They own the building from which they operate their business and are generating significant cash flow from both the company and the real estate ownership.
 
The problem? The owner recently received an unsolicited offer from a private equity group to purchase the business. The number was substantial, life-changing by most standards. Along with the offer came a proposal to sell the real estate to an investor and lease it back to the company under a long-term agreement.
 
Sounds simple enough, right?
 
Not exactly.
 
The broker’s discomfort came from the fact that his client suddenly found himself standing at one of the biggest crossroads of his professional and personal life. Selling the business could create generational wealth. Keeping the business could preserve identity, purpose, and control. Selling the real estate might unlock additional capital, but it would also eliminate a hard asset that had quietly appreciated for decades.
 
In other words, this wasn’t simply a transaction. It was a life decision disguised as a deal.
 
That distinction matters.
 
One of the biggest mistakes advisors make is assuming every client is motivated solely by maximizing price. In reality, business owners often care just as much about employees, legacy, family dynamics, taxes, future income streams, and emotional attachment as they do the final number on the closing statement.
 
The younger broker asked me, “What should I tell him to do?”
 
My answer surprised him.
 
I said, “Your job is not to tell him what to do. Your job is to help him understand the consequences of each choice.”
 
That changes the conversation entirely.
 
When clients face major liquidity events, the advisor’s role becomes less about selling and more about guiding. That means assembling the right team; CPA, estate planner, business attorney, wealth advisor, and real estate expert, and helping the client slow down long enough to think clearly.
 
Too many decisions of this magnitude are made emotionally and justified financially afterward.
 
Sometimes the best outcome is selling everything and sailing into retirement. Sometimes it’s recapitalizing the business and keeping the real estate. Sometimes it’s selling the company but retaining ownership of the building as a passive income investment. And occasionally, after examining all the angles, the client decides to do absolutely nothing.
 
Doing nothing is still a decision.
 
I also reminded him that owners who have operated businesses for 30 or 40 years often underestimate how much of their identity is tied to the company. Monday morning looks very different after the deal closes. I’ve watched highly successful entrepreneurs struggle more with the loss of routine and purpose than with the economics of the transaction itself.
 
Real estate professionals who stay in this business long enough eventually realize we are not simply negotiating leases and sales. We are often helping people navigate transitions; growth, loss, succession, retirement, partnership disputes, family changes, and legacy planning.
 
The buildings are just the backdrop.
 
The experienced brokers understand this. The elite ones embrace it.
 
And perhaps that is one of the greatest privileges of longevity in our business. Over time, clients stop calling you merely because you can complete a transaction. They call because they trust your judgment when the stakes are high and the decisions become personal.
 
That trust is earned one conversation at a time.

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 to go principal to principal

One of the primary responsibilities of a commercial real estate practitioner is to serve as the “go-between” for two parties. In many respects, our job is to keep our clients separated from one another until the appropriate time. That statement may sound unusual to someone outside the business, but experienced brokers understand exactly what I mean.
 
Certainly, there are many reasons for this.
 
Commercial real estate transactions are emotional. Owners become attached to their properties. Buyers become excited about opportunities. Tenants become frustrated with rising occupancy costs. Landlords sometimes take resistance personally. Human nature has a way of entering negotiations, and when emotions become involved too early in the process, the transaction can quickly move away from facts, economics, and problem solving.
 
Part of our responsibility as brokers is to absorb some of that emotion and interpret information in a way that keeps negotiations productive. Often, we are translating more than negotiating. We take a strongly worded position from one side and communicate it constructively to the other. We soften rough edges, clarify intent, eliminate misunderstandings, and preserve momentum.
 
That role is far more important than many people realize.
 
I have seen transactions collapse over comments that had nothing to do with price, timing, or terms. A poorly timed meeting between principals can create tension where none previously existed. Personalities sometimes clash. Casual remarks become perceived commitments. Negotiating positions harden. Egos become involved. Before long, the focus shifts from solving a problem to winning an argument.
 
Ironically, some of the best meetings between principals occur after the difficult issues have already been addressed.
 
Once the major business points have been substantially negotiated, the nature of the conversation changes. The parties are no longer sitting across the table as opponents trying to extract concessions from one another. Instead, they begin discussing how to make the transaction successful. Conversations become collaborative rather than adversarial. At that point, a face-to-face meeting can strengthen trust, create alignment, and reinforce the relationship moving forward.
 
So when is the best time to get principals together?
 
In my experience, the timing is right when expectations have been properly framed, emotions have settled, the parties have demonstrated seriousness, and there is more to gain from collaboration than from posturing. Experienced brokers understand this instinctively. They recognize that controlling a transaction often means controlling the process, and part of controlling the process involves understanding when direct communication between principals helps the transaction and when it hurts it.
 
This is why seasoned practitioners are often reluctant to arrange a meeting or conference call too early. It is not because they are trying to keep parties apart unnecessarily. It is because they understand that premature interaction can sometimes create obstacles that did not previously exist.
 
The right meeting at the wrong time can easily become the wrong meeting.
 
And one of the subtle skills developed over years in this business is knowing exactly when the timing is right.

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.