Compare where we are today vs the market peak in '07. There is tremendous desire to put capital to work in the commercial real estate market.
Investors are increasingly unable to locate assets that meet their investing criteria and are traveling to secondary and tertiary markets... because their local markets (eg. NYC metro) only offer cap rates below 5%.
When it comes to maximizing the proceeds of a sale, it always comes down to EXPOSURE.
It makes sense that using the local agent (local MLS) vs using a national firm would result in different results, right?
It also makes sense that when picking a National commercial real estate firm you would want to know who does the most business, right? (hint - see slide above). Those that do the most business are the ones that have the most properties that the largest numbers of investors scrutinize daily.
Bottom Line: Utilizing a firm that can reach the most investors that are looking for secondary/tertiary or national market opportunities will result in the most offers = higher price and better terms
No matter what asset type you are looking for, there are markets (secondary, tertiary and national) that will provide you with equal or superior returns to what you see in your local markets.
Investors of all transaction sizes are now looking for superior offerings within a few hours or a day's drive from their location (secondary and tertiary markets). They feel that they can easily get to the property as often as needed because of it's proximity to their office/home.
We typically see that the investors that are most likely to take advantage of the national opportunities are those looking for a net leased property or a larger property (office building, apartment complex) that has management already in place.
Bottom Line: Utilizing a national firm that provides access to a huge variety of national investment opportunities will simplify your investment search/ 1031 exchange upleg.
If so , congrats, I hope it made sense and helps.
If you want clarification on any of the below, just click the link and it will send me an email to get back in touch with you:
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