A Hyper Competitive Environment Affects Behavior

While we looked at the topic of the scarcity of industrial real estate or warehouse space in our article last month (Navigating a Tight Real Estate Market (destinoindustrial.com)), this time we will dive a little deeper into how this may effect behavior in the market place.  Buyers and Tenants are very motivated to purchase or lease property, and Sellers and Landlords are very motivated to get top dollar and all the terms in their favor.  While this dynamic clearly creates tension in negotiations, it also creates tension in relationships and interactions on the peripheral.  Buyer’s and Tenant’s can be skeptical of the advocacy of their agent on their behalf when they don’t seem to be scoring too many points in the negotiation process. Sellers and Landlords can also tend to want to over-play their cards and down-play the advice of their agent when introduced to the prospect of so many candidates for their property.  With the tensions mounting and the stakes high, one slip can significantly damage relationships.  However, as transactions successfully come together (or cancel for the right reason) and clients experience how valuable their agent representative was throughout the process, it can solidify that relationship between client and trusted advisor for a long time to come.

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