28
Aug
How Much?
| The first lesson we learn in RE school is that no two pieces of real estate are alike. That is what attracted me to the brokerage profession. The thought that every deal would be different and serve to keep the fire lit and the passion burning. And that has kept me doing what I do for approaching four decades, man, time does fly. It has proven true that all the deals have been unique, but also, they have not all been easy. Well, it is called work, isn’t it? The quality of uniqueness tends to bring a variety of issues and challenges. To succeed in our business, we must find a delicate balance and understanding of both. And this is where the fun begins. In our market, the precedent in value has become more about what someone will pay than what a property is worth based on the old tradition of comparable sales. So, we find that properties are being priced more on ‘future value’ than on their existing condition. With the affordable housing shortage forcing cities to upzone much of the older infill areas, overlays such as Miami 21 and the State of Florida passing the Live Local Act now allow much higher densities on smaller sites. This just adds another layer to our valuation process as brokers. That is all good and well, but what if you do not represent a developer? What about the small business operator who is the typical owner/user and who just wants to use what is already there?  Unfortunately, these issues have made our jobs almost impossible for them, and our analysis hard to quantify. You now not only have to be a broker, but a developer, general contractor, a fortune teller, and a land use expert to decipher all the conditions and exceptions to reach a reasonable guess (aka ‘delicate balance’) on what your client will need to pay to just get what is already there. I share this with you because I am currently in negotiations for one of these ‘unique’ opportunities. An overpriced property by comps that has loads of intrinsic value that we will never use but has something else…location!Well, wish me luck! If you need a unique experience in the commercial real estate market, call me, because I am working on my master’s degree in “unique”! 786.567.8474 |