Michigan Commercial Real Estate

At first glance, this title conjures up vision of the popular business book of a similar name, or the movie Wall Street. For many our industry is seen to be full of "sharks".

Well, 99.5% of this post has nothing to do with neither sales nor real estate. For those who want a connection skip to the end where I will tie the .5%.

Some years ago I was presented a cool opportunity. While honeymooning with my wife in Bora Bora, we ventured out on a "Shark Feeding Snorkel Tour".  We thought, "This will be great! Hop in a boat, go watch some reef shark feeding, then off for a little snorkeling in the lagoon."

All excited, gear in hand the boat shuttles out to the first stop.  No sooner did the engines stop then the first fin comes cutting through the water in front of the boat. The first mate hops out with a bucket in one hand and a long yellow piece of rope in the other. We are all watching as more and more sharks begin to show up in front of the boat.

In broken English "Ok, get your gear on and jump in".

"Huh??" my wife and I look at each other our eyes as big as plates.

"Oh my" gasps the older couple from Australia as the woman almost feints.

"No cage?" I ask as we jump in the water. At his point the first mate has tied the yellow rope between two coral heads, and is throwing dead fish into the water on the other side.

"No, you hold on to the rope to help keep you underwater. You stay on this side, they will stay on that side."

So there we are, one hand holding our heads underwater, the other trying to snap pictures while 25-30 six foot reef sharks circle around eating fish. They would take a bite, and every so often one would turn look, and start swimming straight at us. Right as it would reach the yellow line, it would veer off and turn around. One of the larger sharks came so fast, and close I flinched, when trying to snap the picture.

That is when it came to me (here is your .5% tie in). These formidable, and potentially deadly creatures, were actually scared of us. I waved my hand at the next shark to come at us, and he shot off  "like a scared rabbit".

Sharks are potentially very deadly, and very dangerous. The qualifier here is potentially. Ever noticed that most attacks occur when someone is just surfing or swimming basically minding their own business? The same holds true for business professionals. Many can be very dangerous, and potentially deadly to a deal, your career or reputation. You need to know and understand when you are in the water with sharks; once you do you can keep an eye out and keep them on their side of the yellow line.

Big Mistake #4 - No Representation.

You will find nothing more frustrating and unproductive than driving around aimlessly, calling every sign you see. This is also a sure-fire way to end up paying more for your lease. There are more signs up in front of properties than in the past 10 years. Without a clear understanding of which properties have the right space for your needs, you will spend countless hours driving around making cold calls and hoping for a callback. If you do get a callback, what questions do you ask for your specific need? How will the answers compare to your business model and the market?

Big Mistake # 3 - Trying to manage the project yourself with multiple brokers.

Just getting the information (see Big Mistake #4) is hard enough. Herding cats would be easier than trying to coordinate the necessary contact with multiple agents. You need timely feedback and updates. You need consistent information organized to each property. Commercial property tours are set by appointment, with multiple people at each site. Trying to manage multiple agents results in disorganization, inaccurate information, and time wasted. It is important that you have one point of contact to act as your voice, to filter out unnecessary sales pitches and eliminate useless information & options that are not a fit for your business model.

Big Mistake # 2 - Lack of trust and confidence in your agent.

You need to be comfortable with the broker representing you. It is imperative that he fully understands your requirements as well as any limitations, concerns or specifics of your business that impact your property choice. Without that information, your agent will not be able to command the best deal from landlords and owners. Sudden negotiating changes will diminish your position and creates an opportunity for lost time and money. With trust in your broker, these changes will not occur, and you will get the best deal on your commercial property transaction.

Big Mistake # 1 - Looking for commercial real estate with inadequate representation.

To gain the best deal, especially in a down market, you need representation. It is critical that your broker have a complete understanding of the market, and not just the properties the broker represents. Your broker should know and understand the property owners and landlords, and fellow agents and brokers.

Most importantly, if they do not have the expertise for your requirements, they should disclose that to you and work to get you the support you need.

Referrals from other commercial agents and brokers, continued customer referrals and consulting contracts are evidence of my expertise and knowledge of this market. My business is relationship driven, and primarily comes by referral.