You Are What You Think
I was talking with good friend who happens to be a commercial real estate broker in North Carolina. I call him when I want to save $150 on therapy. Like me, he is an independent broker and he had worked for a large national company. We talked about business, the economy and what the hell is happening.
I asked him, “What are you working on?” and he said, “I recently closed one deal and I have one more in my pipeline, but that’s it.” Then he added, “I am taking the rest of the year off; I am just not going to fight it, I just feel like I am beating my head against the wall!” Personally that is a bit violent for me; I liken it to when you get tangled up in seaweed; the more you fight it, the more tangled you get, and then you drown. Not good.
Prior to this conversation, I had been up since 3:30 AM “thinking” about the business. I realized that I had been fighting the seaweed. And the harder you try, the harder it gets. So what do you do when deal volume plummets?
You show up every day, stay positive and focus on doing quality work for your clients. You cannot do quality work if you are fighting with a kelp bed.
Gratitude is key.
During Covid, it was pretty tough to stay positive, but gratitude is the saving grace. For the most part we all have it pretty good, and sometimes we forget that! As you know negative news gets all the attention. Conversations seem infused with negativity; take Sacramento for example. No doubt Sacramento has taken a few body blows but we are still standing. And on a positive note, the last three weeks have been pretty amazing. First, Aftershock rocked Discovery Park, and then we had the Golden Sky Music Festival. As I write this, the Ironman is happening. Tonight, the Kings square off against the Clippers and the undefeated Sac State Hornets is hosting the Montana Grizzlies.
We have a world class Convention Center, The Golden One, Memorial Auditorium, The Safe Credit Union Community Theater, the Sophia, and don’t forget the Torch Club – the best blues bar in town. Sacramento is a great place to live and that is why we have had such an influx of people from the Bay Area.
Commercial Real Estate Business
There is no doubt that we are going to have another 6 months of low transaction volume – not only because interest rates have escalated so rapidly – but also because there is a significant gap between Seller and Buyer expectations. Not all asset classes are as adversely impacted, say life sciences, medical and apartments, but most asset classes will be negatively impacted in some way. I will save the details about the different market segments for another time.
Bacon CRE is open, aware, present and positive! We specialize helping companies with their facility needs whether it is a renewal or a new lease – a purchase or a sale. Now that Covid is behind us, we are helping companies transition to the new normal which includes hybrid work models, downsizing or realigning their portfolios.
The commercial real estate industry is a long term, relationship business. In dealing with others, a level of understanding must be achieved before the end goal can be achieved. We focus on exceptional work every step of the process while keeping an eye on the desired outcome. An exceptional outcome is the natural conclusion to a professionally orchestrated transaction or assignment.
Have a great holiday season. If you need market intel or you just want to explore CRE options for your business , call us! (916) 761-1202.