Commercial Real Estate Frontline

Have you ever seen an episode of The Bachelor? In this reality TV show a wealthy attractive bachelor is offered two-dozen attractive, albeit somewhat pathetic, women from which to choose a spouse. They’re all made up their best, dressed in high-fashion, and they’re hungry…for love…they want this dude. He starts with the whole lot to choose from. He wines them, he dines them, and then he summarily dismisses them each, one by one, as he winds his way towards a decision (you can watch a series of the “Departed” videos to see their reactions.) Each of them leaves in the back of a limo, brokenhearted and dejected after having devoted much time and emotion to the pursuit. Its sad to watch, but not the kind of sad like “oh I feel bad for her, she was nice” type sad, more like – “wow these women are sad”.

This reminds me of the commercial real estate market. The market is full of opportunities. You can’t swing a dead rat without hitting a commercial property for sale. At the same time investors are few and far between. Many of the usual suspects have hunkered down to preserve cash, some are struggling with over leveraged assets of their own, and everyone is subject to tighter lending.

Back to our bachelor… now imagine that this bachelor knows that in a month the producers are going to bring in a whole new batch of ladies and he has reason to believe they’ll be smarter, better looking, and they’ll like football. Why on earth would he pick one of the first two-dozen? He’d wait to see what was coming down the pike wouldn’t he?

But wait, what would happen if for two weeks they brought in one bombshell. She’s available only for two weeks. Next they bring in five more highly qualified bachelors to meet her and they all know they have just two short weeks and then she is making a decision. Think those guys are going to get competitive? What are the chances that she’s going home alone to make the sad  video?

Do you want the property you’re selling to be the two-week bombshell or one of the sad departures?

This is the difference between accelerated property marketing and a traditionally marketed commercial property in this environment. In an accelerated sale you put the best face possible on a property, you dress her up real pretty. You make her so attractive that anyone in the market would have to look. Next you demand a decision on your terms and in your time frame. That is how you get out of the Meat Market and you Meet the Market.
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