We have seen more CRE website failures than we should have. These failures are expensive, time consuming and terrible for the reputation of those involved. Here is our stab at laying out the pitfalls. We unpack where things go wrong, but, most importantly provide, in our opinion, the questions to ask and actions to take to avoid failure.
What do tier 1 deal makers look like?
Some commercial real estate (CRE) deal makers just seem to have all the luck. It feels like these professionals consistently do the major leasing deals or sales deals in the industry. Deals come to them, they play with larger transactions or larger numbers, move faster than everyone else, are tapped into market intel, and have a hand in most transactions.
Tier 1 deal-makers have all four skills under their belt, and fire them – for the benefit of clients. These CRE deal makers have:
- Access to high quality data (“data is the oil that the commercial real estate industry runs on”)
- Deep experience and high levels of skill in commercial real estate
- Strong relationships – with both tenants and property owners (“property is a relationships game”)
- High levels of efficiency – they have and use the tools that allow them to do steps in button clicks, instead of the hours that it takes their competition
Obviously a non-negotiable for any success is hard work and discipline. This post assumes all deal makers have this basic in place. Because if they don’t, they’re not even on the dance floor.
What does tier 2 look like?
What about those industry’s professionals who put in 100% hours on a daily basis? But, somehow, frustratingly, they are not breaking in to the elite level. These guys are good, and are nearly there – but they boast only three of the four skills required.
The image above unpacks the 4 skills required for deal-making success in CRE (data, experience, relationships and efficiency). As explained above, tier 1 deal makers live in the center – that is, they have all four skills in their toolbox. Further, they know how to use them.
For the sake of clarity, in this article we ignore tier 3 or tier 4 deal-makers – i.e. those who only have two or one of the skill sets detailed above.