What Google Can’t Tell You: How A Local Broker Provides A Nuanced View Of A Distant Property
Commercial real estate investors are always looking for ways to expand into new markets, and they often rely on technology to help them make their decisions. But for all the data these tools can offer, they cannot capture the nuances of a specific region the same way a CRE professional who has walked the streets can.
To get a complete look at a region and property, investors should partner with a local CRE adviser who can provide deeper insight into the state of the market and evaluate trends, according to Lee & Associates Director of National Investment Services Group Ben Tapper. Each of CRE brokerage Lee & Associates’ offices throughout the U.S. and Canada contains a team of brokers to provide guidance and support to clients who want to invest in that region.
Tapper said that the company’s structure as a broker-owned firm inspires it to help clients make investment decisions that are best for their unique and specific needs.
“Having a vested interest in the success of our company as well as that of our clients means that we are not driven by stock price, but by long-term relationships and value creation,” Tapper said. “This entrepreneurial ethos allows us to put ourselves in the shoes of our clients as business owners. With our interoffice collaboration, we can pair our client with an expert who has local knowledge and national reach.”
He said that clients making investment decisions benefit from knowing which regions are seeing the most CRE activity, where both people and companies are moving and where there are engines for growth. They also need to know whether their insurance costs might escalate due to changing weather conditions or if the state regulates rents, for example.
A local adviser may know of the “why" of certain situations in addition to the “what” — why a particular location may struggle with tenant turnover or why a property’s trade could have been vastly different from the market average. A building owner may also be selling a property because of a desire to retire or due to circumstances beyond their control, such as illness or death, Tapper said. Some of these factors may not necessarily be found through online research or databases.
“There’s a lot of information that may never hit the tax assessor data or public websites,” he said. “Someone local in that market may know the backstory and can provide context into the property that you can’t see from using Google Maps. You can’t get it all from the internet.”
He said that working with a local adviser also allows investors to tap into their network of contacts in the region. These can include lawyers, lenders, engineers, contractors and insurance professionals, all of whom can be beneficial for investors who are new to investing in that region.
When Lee & Associates works with investors, the brokerage also takes into account whether the client wants to be actively involved in the property or if they prefer a triple-net lease with the tenant handling everything.
Tapper said that at the end of the day, the organization’s strategy is for its CRE advisers to bring forth investment solutions that suit their particular client.
“It’s about knowing that no two investors are the same, having the resources available to the client and making sure they are seeing the forest in addition to their one tree,” he said.
This article was produced in collaboration between Lee & Associates and Studio B. Bisnow news staff was not involved in the production of this content.
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