Changing Strategies in a Changing Marketplace
Opportunity Knocks for Those Who Know How to Listen
As momentum continues to build in the commercial real estate market, vacancy rates and absorption figures signify improvement in both the industrial and office sectors. Podolsky|Circle Principals share how this changing marketplace changes strategies for both investors and tenants when looking for opportunities and negotiating transactions.
John R. Homsher, CCIM
“The improving marketplace is having an impact on the types of opportunities that are available. Several years ago one of the biggest issues facing the industry was the volume of distressed and bank-owned properties. That distress was great for opportunistic buyers who were positioned to acquire and turn around those properties. While this source of opportunities has been substantially dried up, opportunities always exist. Today it requires digging a little deeper and being prepared to respond and react quickly once opportunities are identified.”
“Today’s market is also characterized by a tremendous amount of capital chasing investment opportunities. As a result, investors are being forced to expand their boundaries. Instead of focusing on major markets like Chicago, investors need to be looking at secondary and tertiary markets. Additionally, they may likely need to more carefully evaluate Class B versus Class A properties.”
Adam J. Tarantur, CCIM
“Because of the shifting market dynamics, businesses should begin the planning process sooner than they may have just a few years ago—perhaps as much as six months out or more depending on the transaction’s complexity. Otherwise you may find yourself with too little time to execute a transaction in today’s market and consequently be forced to simply renew in your existing location or settle for something that is less than optimal for your business.”
- Opportunity: The market is always in flux and opportunities always exist. Those who adjust with it are the ones who will find and take advantage of those opportunities.
- Flexibility: If you’re an investor, realize that real estate doesn’t end at the city’s border and that Class A buildings aren’t the only ones worth your attention.
- Diligence: If you’re a tenant planning a move, allow yourself plenty of time to plan and locate your best-fit solution.