There’s a new shift in pricing.
There are many commercial property owners who have got their head in the sand and are still hoping that this economy will change drastically. Tantamount to getting an oil tanker heading to the South Pole to turn on a dime. It’s going to take a while to do it.
The point is, the sooner property and land owners recognize and embrace the facts of the market, the better. Here are the facts: you are competing against owners who bought buildings at deep discounts and are out marketing the properties at significantly lower lease rates and/or you are competing against owners who have realized that a dollar coming in the door is one less dollar they must find to go out the door and making deals to generate any income at all. This is the free market and this is the reality.
Consider this chart and decide whom you wish to be, Property Owner A or Property Owner B. At any fixed point in time, Property Owner A is always pricing just above the market and Property Owner B is just below the market. Property Owner B will get the tenant, almost guaranteed and as we move forward in time during a down market, he will continue to get the tenants while Property Owner A continues to chase the market.
Can you tell me, what other options than pricing in front of a down market is there. The idea here, is to beat the market, you cannot pick the market.
Jag Grewal
About Dottie