I don’t know who first spoke that line, but I have a vision of an old-time, cigar chomping sales manager, wading into the sales bullpen with his sleeves rolled up, and kicking his reps out onto the street with a “don’t come back until you’ve sold something!” follow up.  Times have changed, but I don’t think the wisdom behind this message has gone out of style. 

If you have been in the workplace for at least twenty years, you probably recall a pre-desktop environment.  If your company did have a computer system, it was a monster and was programmed for very industry-specific tasks (i.e. insurance, banking, manufacturing).  Most business was conducted in person, and all correspondence, documents and invoices were generated on a typewriter.  The post office and couriers were the principle movers of all that paper and business transactions took time to come together. Commercial real estate deals were no exception.  It really was a different world.

Back then, a commercial broker’s most critical asset was his (because it was almost always a “he”) market knowledge.  With no on-line services available to help identify properties, locate owners and tenants, and track vacancies, each broker’s personal data-base was very proprietary and closely guarded.  It was a tangible representation of a lot of work and hard-earned experience, and it wasn’t given away for free.

Today, anyone can log on to the web and search for anything, whether it’s a car, a new office, or the best cinnamon rolls in town.  With so much information at your fingertips, why rely on a broker?  Or, if you’re a broker, why leave the office yourself?  It seems that one could make a living by simply managing and processing information, and connecting the dots between tenants and landlords, needs and wants, without ever leaving the office.

Fortunately, there is still a place for old fashioned market know-how.  This year at
NAI Southern Real Estate, we have closed real estate transactions that would have never happened if we solely relied on the available listing services currently serving Charlotte.  In one instance, a plumbing supply company needed what was assumed to be an easy-to-find building, given all of the negative press about the market in 2009.  It should have been easy to find, but it wasn’t.  Fortunately, an opportunity presented itself in the form of a build-to-suit that, had it not been for some long-standing relationships, would have been completely missed.  The tenant will move into a brand new building this December.

In another case, the owner of an established Charlotte company was looking for a new home in the Midtown market, after selling his current location earlier this year.  While we were privileged to sell the property, we were very happy to accommodate a valuable client in his search for a new location.  A quick search conducted on the computer revealed very little that could possibly work or that our client had not already seen through competitive brokers (cold-calling our client, of all things!).  But being out and about has its value, and we knew that a furniture store had recently vacated a prominent space on East Morehead Street, but the building was not being marketed through the more typical channels.  It took a just a few phone calls and trips to the building, but ultimately it didn’t take long for both parties to realize they had found an optimal solution.  The tenant will be moving into his new art gallery/framing shop around the holidays.

The common element between these two stories is that the deals that ultimately took place required a deeper understanding of the market we operate in than what can be gleaned from a computer screen.  They required getting out of the office, acquiring firsthand knowledge, and building relationships. There is no substitute for knowing your market at street-level.  That doesn’t mean that there is no room for young professionals in the commercial real estate business, but if you have engaged a broker to help you locate a new office or facility, there are a few basics you should expect:

• When touring properties, is the schedule efficient?  Are listing agents prepared and on time when you arrive at their property?  (Ask your broker if he/she has conducted a dry run of the tour in an effort to reduce idle moments and not waste your valuable time.)
• Does your broker display a solid understanding of the market while you’re out and about?  (When driving by an obviously available property, ask why it’s not on the tour. The answer may be revealing)
• Are you looking at relevant properties in the first place?  Has your broker fully grasped your requirement?  To be fair, have you completely shared the specifics of your space needs?  (If you are seeing too many properties that don’t work, something is wrong.  Either you have not communicated clearly your needs – be honest – or your broker has not dug a little deeper to uncover your best options.)
• Finally, how are you and your broker being received as you visit each property? The other party’s demeanor and body language may offer some important clues.  (Are you working with an experienced and well known professional, Blackbeard, or the Invisible Man?)

I’m glad that our industry still places a value on hard work.  If you are running a small company or managing a corporate office, then you are likely a hard worker too.  Expect nothing less from the people you engage to assist you in one of your most important business decisions:  the location of your business.

Oh, and by the way, Happy Hunting!

If you would like to know more about the deals described in this article, or the market in general, please do not hesitate to call NAI Southern Real Estate at (704) 375-1000, or contact Tim Bahr at tbahr@srenc.com.