Navigating a Tight Real Estate Market

​If you have recently been looking to lease or buy industrial property in Southern California, you may feel like it is challenging to accomplish your desired goals.  Missing out on deals or not being able to find a deal can be a frustrating experience.   In addition, you may be hearing that brokers are encouraging you to be ready to move quickly, because everything you inquire about has multiple offers, sellers and landlords are firm on their price, choices are few, and the list goes on….  This can often create pressure on you that can negatively influence your decisions.  So therefore, in this type of environment we must take steps not only to deal with these challenges, but to excel in the midst of the market we face.
 
Additionally, we must remember to slow down the decision making process as much as feasibly possible in order to evaluate the decision criteria so that we can make informed choices.
 
Our team has been working with many buyers and sellers, and there are several keys to consider so that you are best positioned to seize opportunities in today’s market.
 
Let’s take a look at three key considerations and why they are so important!
 
1.  BE PREPARED
2.  BE FLEXIBLE
3.  BE ADVISED

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​Be Prepared
In order to be best prepared for your property search, there are a couple factors you must first recognize about today’s industrial real estate market.

• Supply:  The quantity of inventory and building choices are few.
• Demand: The quantity of buyers and lessees are many.

 Because of these two factors, the activity on each property is multiplied and competition for quality space is fierce.
 
So what does it mean for you to be prepared?

1. First, we must know what you need with regard to building size, amenities, location and timing.
2. Second, we must know what is actually available on the market, not just what you may see listed out there.
3. Third, we must have our financing and/or financial records in order so that we can demonstrate our ability to close a transaction as timely as possible.

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​Be Flexible
As you begin to get prepared and take note of what is truly available in the market, you must consider your own flexibility for what you desire to acquire.  Being flexible in today’s market will open up more opportunities for you and provide you with the most potential to solidify your deal.
 
Therefore, ask yourself and your company these questions:

• Can you adjust the size of the building you are looking for?  If so, in what way
• Can you modify any building features you need to match what is currently available?
• Do you have the capability to make building modifications such as adding office space, sprinklers, or loading positions?
• Are you willing to look at a wider geographic area to match what is available?
• Can you be flexible in your timing to wait for other, potentially more suitable, opportunities?

 
The more flexible you are in the search for industrial property the more options and negotiating leverage you will have in your process. 

Be Advised
 So, who should you partner with on this task?  Well, I would recommend first and foremost that now is not the time to give your family member or friend who just happens to have a real estate license the call to work on this assignment for you.  Equally important, you will be well advised not to work on a commercial assignment with someone who specializes in residential real estate. 
 
This cannot be stressed enough:  You need to work with a professional who handles industrial real estate day in and day out.  (Sample of Our Completed Transactions)  
​We have already noted how scarce the market is and the knowledge, experience and relationships that a professional commercial agent brings to the table can often be the decisive factors in the successful completion of your assignment.
 
Therefore, you need to have a Commercial Industrial Real Estate Specialist who:

• Does industrial real estate on a daily basis,
• Knows the market and the participants therein very well,
• Is going to work hard for you, and who has the time to focus on your needs,
• Is experienced in the type of transactions you are looking to complete, and
• Is creative and resourceful enough to come up with and explore alternative options for you.

 
In Conclusion:
It is important for you to remember that you must be prepared, flexible and well-advised in any market, but it is all the more important when inventory is scarce and demand is high.  Contact Christopher Destino today to discuss your commercial industrial real estate needs.  

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