Our
travels took us to the heartland of America, Oklahoma City, Oklahoma. We had a
bit of soul searching to do and some some spare time so we visited the Oklahoma
City museum which commemorates the horrific event of April 19, 1995. Although
no monument can remember the 168 people who perished that day, the thousands
injured or the countless families changed forever by one heinous act, the
memorial is tasteful, poignant, and impactful.
You
may be wondering what this has to do with commercial real estate? Indulge me as
I recount a few lessons learned.
The
first lesson involves the power of the built environment. Standing on the
grounds of the memorial, one quickly realizes that thoughtful design can carry
extraordinary meaning. The reflecting pool rests where a city street once ran.
The field of empty chairs quietly represents each life lost that day. The
Survivor Tree, scarred yet standing, symbolizes resilience and hope. None of
these elements shout for attention, yet together they communicate something
profound.
As
commercial real estate professionals we often spend our days discussing square
footage, lease rates, zoning, financing, and market conditions. Those metrics
matter and they drive decisions. But occasionally we are reminded that
buildings and land can carry something far more meaningful. The spaces we help
create and shape ultimately become part of the stories of the people who occupy
them. Offices are where businesses grow, warehouses support livelihoods, and
storefronts become gathering places for communities. Real estate is not merely
physical space. Over time it becomes part of human experience.
A
second lesson is the strength of community. The bombing destroyed a building
and took innocent lives, yet it did not destroy Oklahoma City. In the days that
followed, first responders, volunteers, and ordinary citizens came together in
ways that still resonate today. The rebuilding that occurred was not just
structural. It was emotional and civic. The memorial stands today not simply as
a reminder of tragedy but as evidence of how a community can respond with
dignity, resolve, and unity.
Commercial
real estate often plays a role in these moments of recovery. Cities evolve.
Neighborhoods change. Buildings are repurposed or replaced. Through it all,
people continue to invest in places where businesses can operate and
communities can gather. The physical structures may change, but the underlying
strength of a community often becomes even more visible during times of
adversity.
A
third lesson centers on purpose. The land where the Alfred P. Murrah Federal
Building once stood could have been redeveloped in countless ways. Instead, it
became sacred ground dedicated to remembrance, education, and hope. The
memorial was not designed to generate income. It was created to honor lives,
teach future generations, and provide a place for reflection.
That
decision speaks volumes about the role land can play within a community. In our
profession we often evaluate property through the lens of value, return, and
highest and best use. Those are appropriate considerations. Yet occasionally
the highest and best use of a property is not measured in dollars per square
foot. Sometimes it is measured in the meaning it holds for the people who visit
it.
Walking
through the memorial reminded me that land and buildings often become far more
than the structures originally envisioned. They become places where life
unfolds. They carry memories, celebrate achievements, and sometimes help
communities heal.
For
those of us who make a living in commercial real estate, that perspective is
worth remembering. The properties we work on today may someday become part of
stories we cannot yet imagine.
I’m
penning this column from America’s heartland, Oklahoma City. According to the Oklahoma
Historical Society, Oklahoma City (OKC) has been a major hub for the oil
industry since the late 1920s. The Oklahoma City Oil Field, which was
discovered in 1928, extends into the city limits and historically included, and
even to this day still produces from, areas around the Oklahoma State Capitol.
My
thoughts went toward what’s happening in the Strait of Hormuz and oil’s impact
on the United States economy and, more specifically, commercial real estate.
What
follows is how a rise in oil prices affects us.
Oil
is one of the most important inputs in the global economy. When the price of
oil rises sharply, the effects ripple outward through transportation,
manufacturing, consumer spending, and ultimately the real estate that houses
those activities.
Consider
transportation first. Oil fuels the movement of goods across the country.
Trucks, trains, ships, and airplanes all rely heavily on petroleum-based fuels.
When oil prices climb, the cost of moving products increases. Higher freight
costs work their way into supply chains, increasing the cost of everything from
raw materials to finished goods.
For
industrial real estate, this dynamic can create both pressure and opportunity.
Companies facing higher transportation costs often seek greater efficiency in
their logistics networks. That can increase demand for well-located
distribution facilities closer to major population centers and transportation
corridors.
A
rise in oil prices also contributes to inflation. Oil is not only a consumer
product but a key industrial input. When energy costs rise, businesses
typically pass at least a portion of those increases on to consumers. Over
time, higher energy costs can lead to broader inflation across the economy.
Inflation,
in turn, influences interest rates. When inflation rises, central banks often
respond by tightening monetary policy. Higher interest rates increase borrowing
costs for businesses and investors. In commercial real estate, that can affect
everything from property values to the feasibility of new development.
Not
every region reacts the same way to higher oil prices. Areas tied closely to
the energy industry often benefit when oil prices rise. Increased drilling
activity, expanded energy services, and job growth can stimulate local
economies.
Cities
like Houston, Midland, and Oklahoma City have historically seen economic
tailwinds when oil prices strengthen. Increased activity in the energy sector
often leads to additional demand for office space, industrial facilities, and
housing.
At
the same time, regions heavily dependent on transportation, tourism, or
energy-intensive manufacturing may feel the negative side of rising oil prices
more directly.
There
is also the factor of uncertainty. Oil price spikes frequently coincide with
geopolitical tensions, such as those currently surrounding the Strait of
Hormuz. When businesses perceive risk in the global economy, they tend to slow
expansion decisions. Leasing activity may pause, capital investment can be
delayed, and corporate occupiers often adopt a more cautious stance.
Yet
higher energy prices can also accelerate structural changes in the economy.
Companies may shorten supply chains, bring production closer to home, or invest
in more efficient logistics systems. Each of these shifts has implications for
commercial real estate, particularly in the industrial sector.
Oil
has always been more than a commodity. It is a signal about the health and
direction of the global economy. When oil prices rise, the ripple effects
eventually reach the buildings where we work, manufacture, store, and
distribute goods.
From
the vantage point of Oklahoma City, where oil has been part of the economic
fabric for nearly a century, the connection between energy and real estate is
clear. The price of oil may be determined in global markets, but its impact is
felt locally, often in the commercial buildings that support our economy.
After
over four decades in commercial real estate, I have watched countless brokers
walk into listing presentations confident they would secure the assignment,
only to walk out without it. When that happens, they often blame the fee, the
competition, or the market. In reality, the reasons are usually much simpler
and far more controllable.
In
my experience, brokers fail to secure agency assignments for four primary
reasons.
The
first mistake is making the presentation about themselves rather than about the
owner and the property. Experience matters. Production matters. Reputation
matters. However, owners are not hiring a résumé. They are hiring someone to
solve a problem. When a broker spends most of the meeting reciting awards,
years in the business, and transaction volume, they unintentionally shift the
focus away from the very person they are trying to serve.
Owners
are sitting across the table wondering whether the broker understands their
property, their timing, their financial objectives, and any pressures they may
be facing. They want to feel heard. They want to feel understood. When the
conversation centers on the broker’s accomplishments instead of the owner’s
needs, confidence erodes. The most effective listing presentations are built
around thoughtful questions, careful listening, and a clear demonstration that
the broker truly understands the assignment.
The
second reason brokers lose listings is that they fail to clearly articulate
what makes the property unique in the marketplace. Every building has
distinguishing characteristics. Location, access, parking, configuration,
tenant mix, zoning, expansion potential, functional limitations, and
redevelopment possibilities all play a role in how the property should be
positioned. Yet too many presentations rely on generic marketing plans that
could apply to almost any asset.
Owners
deserve more than a promise to place the property into the brokerage community
and send out email announcements. They want to know why a buyer or tenant would
choose their property over the competing options down the street. They want to
understand the likely target audience and how the property will be positioned
to that audience. A broker who cannot clearly explain the property’s
competitive advantages, while also acknowledging and planning around its
weaknesses, will struggle to inspire confidence. Strong brokers position
properties strategically. Average brokers simply expose them to the market and
hope for the best.
The
third mistake involves process. Owners are not merely seeking a number; they
are seeking an outcome. Ideally, they want the highest price the market will
bear, achieved within a reasonable period of time and with minimal disruption
to their operations or tenants. What many brokers fail to do is clearly explain
how they intend to deliver that outcome.
A
thoughtful presentation should outline how the property will be prepared for
the market, how pricing will be evaluated and refined, how prospective buyers
or tenants will be identified and approached, how negotiations will be handled,
and how the transaction will be managed from contract through closing. When
this roadmap is missing, the broker may sound enthusiastic but not organized.
Owners are placing a valuable asset into someone’s hands. They want to see
structure, discipline, and a clear path forward.
The
fourth and often most damaging mistake is locking into a single price as though
it were absolute. Markets are fluid. Interest rates shift. Capital markets
tighten or expand. Competing properties enter the market. Owner circumstances
change. A pricing recommendation should be part of a broader strategy, not a
rigid declaration.
Sophisticated
owners understand that value is dynamic. A strong broker prepares them for
multiple scenarios, discussing what might happen if activity is brisk, if it is
slower than anticipated, or if market conditions change during the marketing
period. By framing pricing as a strategy that can adapt to real-time feedback,
the broker demonstrates awareness and flexibility. When a broker becomes
emotionally attached to one number and defends it without regard to changing
conditions, credibility suffers.
At
its core, securing a listing is not about impressing an owner with accolades or
confidence alone. It is about demonstrating understanding, clarity, strategy,
and adaptability. Owners are entrusting brokers with significant financial
decisions. They want someone who sees the property clearly, understands the
market honestly, and can guide them through a defined process with steady
hands.
The
brokers who consistently secure agency assignments are not necessarily the
loudest or the most decorated. They are the ones who make the conversation
about the owner, position the property intelligently, outline a clear plan of
execution, and remain flexible as circumstances evolve. In the end, clarity
wins listings.
