For owners/developers out there, I’ve meant to recommend a site by the name of Marketwi.se (correct spelling) which is run by an SVN broker by the name of John Reeder. You can learn more about John here and here. John is based in California and concentrates in the land development and investment market. Practice areas include land sales to residential and commercial developers, REO land sales, and the emerging solar land development market.
However, what I enjoy most is some of the commentaries from John, who provides candid opinions on the CRE market and investment issues from a broker’s perspective with a dash of humour. Here are some recent examples:
Here is a post about the anguish and frustration in bidding against oneself in a deal. I share John’s absolute disdain for bidding against oneself, and counsel client’s never to do it. However, I do not agree that no good can come of it if the deal warrants it. Sometimes, the seller wants to cut to the chase and a buyer’s “last/best” can win the day. That said, any “last/best” in the scenario described by John has to be justified by the deal and should come with a deadline, so it doesn’t become the stalking horse for the seller.
Here’s another good one about how the illiquid nature of commercial real estate offers pricing inefficiencies that favour the experienced investors.
I found the topic of this post — what makes a great CRE investor — to be of interest and agree with the comments: know your niche; stay in that niche, and recognize/manage risk.
I especially love the “broker-speak” examples.
Brokers play a role in just about every CRE deal. If you are buying or selling the commercial real estate, it won’t hurt to know what brokers are thinking. Marketwi.se is a great place to start.