My neighbor constantly reminds me my voice echoes with commercial real estate owners well above his pay grade.
It’s certainly not my intention, but I take any comments to my missives seriously and attempt to morph into a more meaningful messenger.
Regardless of the size of a commercial real estate portfolio — one multifamily property or global holdings of distribution boxes populated with Amazon-eque tenants — investments are simple! Why do we make them so hard?
You see, any investment of money seeks a return. Period. Sure. You’d like the return to be commensurate with the risk. But after all the fancy terms of capitalization rates, internal rates of return, replacement cost, source of capital, exit strategy, expense leakage, cash on cash, leverage, etc., it’s really about this. I shell out this much money and get this much back. Mic drop.
Commercial real estate brokerage is simple. Why do we make it so hard?
A real estate transaction – whether it’s a sale or lease – has two sides: the owner and occupant. Now, the occupant may seek to lease or own and the owner may want to sell or lease, but you get the idea. Inject our representation and you now understand what we do. We are matchmakers of sorts.
An owner engages us to locate a tenant or buyer to fill her vacant building or an occupant awards us the opportunity to source a location for their use. The former assignment is known as a listing and the latter an occupant representation.
If you ask me what I do and I respond, “I sell commercial real estate.” You might wonder, “What the heck is commercial real estate?” Many of our clients are family-owned and operated manufacturing companies experiencing a transition – such as a move. This might offer a better idea of what fills our days.
Networking is simple. Why do we make it so hard?
The true value of a commercial real estate professional is the depth of their network. Need a roofer? We’ve got you covered. How about a legal professional to draw a new LLC? Hold my beer, I have several. How about someone to install new warehouse racking? Yep. Got just the gal.
But all of these examples are “downstream” of the deal. By that I mean, the need is after or “downstream” of the sale or lease. But what about “upstream”? What classes of professionals see a transaction before it takes flight? The answer harkens back to what we do.
Remember, many of our clients are family-owned and operated manufacturing companies experiencing a transition like a move. If we focus on those professional service providers who complement not compete with our efforts – a treasure trove emerges.
Here’s an example: Let’s say a manufacturing concern experiences a record year but leases their building. During a periodic meeting with her accountant, they discuss revenue and leasing. If the CPA advises his client to buy a building, you get the idea.
Business is hard enough. Your commercial real adviser should make it easier for you.
Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
VANCOUVER – Voters along the south coast of British Columbia who have not cast their ballots yet will have to contend with heavy rain and high winds from an incoming atmospheric river weather system on election day.
Environment Canada says the weather system will bring prolonged heavy rain to Metro Vancouver, the Sunshine Coast, Fraser Valley, Howe Sound, Whistler and Vancouver Island starting Friday.
The agency says strong winds with gusts up to 80 kilometres an hour will also develop on Saturday — the day thousands are expected to go to the polls across B.C. — in parts of Vancouver Island and Metro Vancouver.
Wednesday was the last day for advance voting, which started on Oct. 10.
More than 180,000 voters cast their votes Wednesday — the most ever on an advance voting day in B.C., beating the record set just days earlier on Oct. 10 of more than 170,000 votes.
Environment Canada says voters in the area of the atmospheric river can expect around 70 millimetres of precipitation generally and up to 100 millimetres along the coastal mountains, while parts of Vancouver Island could see as much as 200 millimetres of rainfall for the weekend.
An atmospheric river system in November 2021 created severe flooding and landslides that at one point severed most rail links between Vancouver’s port and the rest of Canada while inundating communities in the Fraser Valley and B.C. Interior.
This report by The Canadian Press was first published Oct. 17, 2024.
