One thing I like to do to take the temperature of commercial real estate across the country is do a quick search through Google News and Google Blog Search.  I just type in “Commercial Real Estate on both sites, and see what pops up (News search here and blog search here).  When headlines like these: Commercial real estate market sinks, The Commercial Real Estate Stomach Blow, and Red Roof defaults on $361 million commercial loans, pop up I’m not overjoyed, to say the least.

For months, when talking with people in general about my choice of career, their response has been something to the effect of, “Oh, real estate. . . well at least you’re not in residential, right?”  And their observations have been correct to a degree.  The real estate industry has been in a tough position for a while now, but commercial was struggling to a somewhat lesser degree than residential.  Deals were still getting done, and prices were not falling like the residential market.  Depending on who you listen to, that may or may not change in the near future.

Tougher times affect everyone, and they definitely make a buyer or seller’s decision regarding their choice of agent that much important.  When you have thousands of transactions happening in the market whether your agent is on top of things, is active, and stays informed is of less importance.  If your cousin has his real estate license, sure he can list your property because buyers are plentiful and easy to find.  But when you have only a few transactions happening in the market you need to be sure that your property is one of them.  Your agent needs to focus their efforts to put your property in front of the most likely buyers; the individuals that have the means and the need or desire to complete a transaction.

Getting through all of the “fluff” can be difficult, so along with a few colleagues I have come up with a list of some of the more “uncomfortable” questions you might want to ask your agent.  Use them on me if you have to, but use them to find out what you need to know about the person representing your interests in real estate.

1. Do you have any ownership in any properties that could be in conflict with the property I’m listing?

Many agents, over time, develop their own property portfolios.  Then they proceed to list these properties with their own brokerage.  All of that is fine, and probably to be expected.  But when a broker gets a call from a potential tenant, and the broker is struggling with some vacancy, will it be their inclination to show them your listings first?  Make sure that your broker / agent is looking out for your needs, first and foremost.

2. Do you, or does your brokerage, have a standard marketing strategy for every property you list, what is it, and how will you consider the specifics of this property to customize your marketing approach?

That’s probably more than just one question, but it is important to find out what the agency and the agent are actually going to do.  We have a tremendous amount of tools at our disposal, more than we ever had in the past, and the agency you work with as well as your agent should be comfortable with them and should have shown how they have put them to good use.

3. Why should I list this property with a broker / sales agent as opposed to putting up my own sign and marketing it myself?

This question needs little explanation, but be aware that brokers and agents are used to this one.  So follow up with some pressure.  Ask whether they are willing to do some non-traditional advertising and marketing, and then ask how they are going to report that to you.  Keep in mind that this person and their company will be working for you; it is acceptable to hold their feet to the fire to a degree to help them find motivation.

4. What is your comfort level with new technology?

If your agent is uncomfortable with Google, unaware of what a blog is (apart from what they have heard on CNN), and struggles to differentiate between the address bar on a browser and the Google search box, chances are your property is not going to be placed in front of a growing group of technologically savvy buyers and tenants.  Interested parties no longer pick up the phone first, they do a search online.  So if your property is not searchable, it is not going to be found.

5. What are you doing to sell the listings that you have, and can you show me?

When you are considering hiring an agent or broker to market your property, keep in mind that they have already gone through this explanation and presentation hundreds of times.  But then have they followed through?  You are better off looking at what they have done for properties they already have listed than listening to what they promise they will do for you.  If they are doing a thorough job on the rest of their listings, you should be able to find information about them and their listings online, and they should be able to show you some examples of information they have sent out, or calling lists that they have used to market their current portfolio of listings.

There may be some bad times ahead for commercial real estate, but you do not necessarily have to be negatively affected personally.  Do your homework, track down a hard working agent, and you can be sure that your property is placed in front of more potential tenants and purchasers than the building next door.

If you are an agent, I would love to hear the questions that have made you uncomfortable or that have put you on the spot.  If you have been a part of a property transaction, what are some questions you wish you had asked?  I’d love to hear from you in the comments or feel free to contact me directly.

Chip LaFleur is a Real Estate Advisor with Callander Commercial Real Estate in Grand Rapids, MI. His unique marketing and information technology background compliment his position with Callander Commercial and strengthens the Grand Rapids office.  Chip can be reached at clafleur@ccmichigan.com or (616) 446-4197.

2165 Alpine Ave NW, located in Walker, MI, was once a successful Palermo’s Pizza location.  Existing ownership has decided to pursue other career opportunities & has allowed Callander Commercial to bring this great opportunity to market.  This free standing building features a newly renovated upstairs apartment (770 Sq Ft), lower level retail/office space (1,500 Sq Ft), equipment has been sold but existing build-out can easily facilitate a new restaurant or other specified use.  The apartment is a 2 bedroom with beautiful hard wood floors, all new appliances (dishwasher, washer/dryer, stove, refrigerator) & central air.  The building is situated with excellent visibility on busy Alpine Ave NW, located directly across from the new Avastar Park re-development.

There are endless possibilities here; if you are thinking about opening a business/ moving an existing business & also need a place to stay or want to operate a business and lease out the apartment, give Greg Mahalick or Chip LaFleur a call today at 616-459-8000.  We can help you make the right move today.  Also, please note that this building is available for sale, lease, or land contract.  Please call for additional information.

FOR IMMEDIATE RELEASE

June 8, 2009

Contact: Thomas Droog

616.942-6273

tom@asrworldwide.com

GRAND RAPIDS, Mich. – American Systems Registrar (ASR) recently moved into a new headquarters at 5281 Clyde Park Ave SW, Wyoming, MI.

Richelle Kinzie, President of ASR, says “The addition of new Sales & Marketing staff combined with the overall growth of the company necessitated a larger, more modern facility to better serve our worldwide customer base”.

This new location will allow ASR to become more effective and efficient in the review and processing of current customer documentation as well as more conducive to growing the company for the future.  Pamela Collins from Callander Commercial brokered the deal.  “We are very excited about our new location, Pamela helped make our move seamless,” Kinzie said.

American Systems Registrar (ASR) is an international company offering auditing services to ISO 9001,  ISO 14001, ISO/TS 16949, AS 9100,  OHSAS 18001and ISO 13485 .  They are headquartered in Wyoming,  MI with foreign offices in China, Taiwan, Korea, Japan, Vietnam, Thailand, Turkey, and Egypt.  For more information, call 888-891-9002 or visit us at  www.asrworldwide.com

What is “Forced Entrepreneurship?” What causes it?  Why is it relevant to today’s economy?  More importantly, how do we as an industry of professional real estate advisors facilitate it?  These are a few of the many questions regarding this new demographic, and in my opinion, a sub-population that could, if advised properly, greatly accelerate the turn around of today’s market.

First and foremost, what type of people make up this new demographic?  A good majority of them are classified as “baby boomers,” still in their late 40′s to early 50′s. Or, a smaller segment of this group would be the “Generation Y” who are slowly yet very carefully observing the unraveling of the “corporate ladder” and see no other option.    Granted the former is classified as having a birth range of 1979 to 1994 and has yet to fully emerge, but when it does, mark my words, we will all take heed.

A good portion of my clients are in the latter demographic mentioned above and have either been forced out of their careers either via down sizing/bankruptcy (insert GM, Chrysler, and Ford here) or took a bite of the “dangling carrot” offered as an early buy-out package- forecasting that things would get worse before they get better and that this was their only viable option.  In my opinion, those that took the early buy-outs (pending our nations current resolve of the healthcare system) are postured to pursue entrepreneurism far better than those who stayed the course.  Reason being, they are far more likely to take risk with the buy-out package then those without a buy-out package and left only to stare at a frozen credit market and a healthy 401K/IRA as their only viable options for financing (less seller financing opportunities).

Finally, the segment of this article I would consider the most important, proper real estate & business advising.  We are all aware of the importance of small business to our economy, accounting for 39% of the total GNP and responsible for 2 out of every 3 new jobs created.  Thus, I take personal responsibility in the development of this demographic and how it can and will directly affect the speed of which our economies turn around.  Gone are the days of full triple net leases with three to four percent escalators; in its place are landlords/owners who are more receptive to their tenant’s business- realizing that a small concession today yields a greater relationship tomorrow.

All in all, we as an industry of professionals must take notice of this emerging demographic and do our best to facilitate and advise their needs (i.e. take personal responsibility for the economy and do your best each day to make a difference).  Also, if you are reading this posting and are beginning to realize that you are/will be part of the “Forced Entrepreneurship” demographic, give Callander Commercial a call today and lets discuss how together, we can begin to work on your tomorrow. 616-459-8000

The back portion of Millbrook Tack, located on the southeast corner of US-131 and M-6 interchange is available for lease.  The building is extremely visible from US-131 North and South, and easily accessable from M-6.  US-131 alone averages over 61,000 vehicles per day.  As you can see from the Michigan Department of Transportation, this is one of the busiest stretches of highway in the Grand Rapids area, outside of actual downtown Grand Rapids because of the interchange at M-6.

The space itself has been well maintained and has an overhead storage area, as well as five overhead doors and a loading dock.  The space could be demised in a variety of different ways for different uses, the overhead doors would make an ideal trailer or vehicle repair facility.  There is a tremendous amount of exterior storage available in the back of the property as well, which could be utilized by a tenant for storage or display.

Millbrook Tack has been the premier location in the region for horse tack and equipment, as well as western wear and supplies.  They are a destination for many horse owners, and any business that could benefit from the existing traffic as well as the highway exposure would be a welcome addition!

For more information, contact Chip LaFleur at (616) 459-8000.