Commercial Real Estate Investment Analysis –
Do you need help analyzing the financial implications of your next commercial lease, commercial land deal, commercial development project, or commercial investment sale/purchase?
There are two systems that most commercial tenants, landlords, buyers, or sellers use regularly in commercial real estate negotiations.
System One—-How low or high they will they take? This methodology is usually based on emotion and poker playing. The goal is to see how far you can get the other party to move away from their financial goals. This system creates several major dilemmas. The first issue is that you are competing with the other side of the transaction instead of completing them. Fighting to win often causes losses in the long run. The second is that making your decision based on how far another party will negotiate doesn’t necessarily mean that the math works for your investment.
System Two—We use financial analysis when representing lease deals (tenant or landlord), land sales (buyer or seller), building sales (buyer or seller), or investment sales (buyer or seller). Quantifying decisions allows the party we represent to take a “rifle” approach to their offers or counter offers versus shooting in the dark. Instead of kicking tires to see if a deal can be made, we utilize a wide variety of investment analysis tools to make our best offers up front. We have found that the other party (party we don’t represent) is more appreciative of our client’s offers or counters because they are based on definable financial analysis.
