The good, the bad, and the ugly in CRE

Business Manager, Stuart Commercial Inc., Sales Associate, ICR Commercial Real Estate
  • Jul. 15, 2015

Kelly MacsymicOver my seven years with ICR, I’ve had a few deals that stick out in my mind. Much like a snowflake, every deal is unique, but there are a few noteworthy examples of what I’d classify as the good, the bad and the downright ugly.

The good

Happy clients make happy agents. So much of our job isn’t just finding the right space for folks, but rather building relationships.

I’ve had clients share some very personal things affecting their business decisions. I like to think it’s because they trust me and can see I’m looking out for them.

When that trust exists, expressions like “This is where we can put the front desk” or “I’ve got dibs on this office” show me I’ve hit the nail on the head for their wants and needs.

I had a client a few years ago who was unable to complete a transaction due to unforeseen changes in her life. The client understood my work was all for naught and actually sent me an edible token of appreciation. Was it necessary? Absolutely not, but it showed me she respected my hard work and it made my day.

The bad

Just as easily as a deal can come together, so too can it fall apart. We’ve all had transactions take complete 180-degree turns without any forewarning.

Sometimes there are hints you may or may not choose to see. You’ve been given a timeline, for example, that seems urgent. But as you view spaces, it becomes obvious there isn’t an immediate need.

Space requirements can change by the day for some companies; we know that. If those requirements shift, it’s imperative to share those changes with the agent finding you property.

I had a tenancy a few years ago that started going sideways on me. The client became standoffish with me and quickly changed its mind regarding what it was looking for.

At the end of the day, I had to chalk it up to changes regarding income and the inability to finance a relocation. Instead of admitting that circumstances changed, the client began to pick apart the properties I had shown it. We looked at many properties only to end up renewing in the existing location.

The ugly

My final example started off with the good, veered towards bad and skidded into ugly over the course of a few years.

I had completed a couple of transactions with a company, so my experience with it wasn’t new.

We searched properties and the client settled on a location within a timely fashion. The offer negotiation wasn’t easy, but we got it settled. I thought the worst was behind us.

Unfortunately I was wrong. It got much worse.

The tenant was anxious to get into the space so the landlord released keys without execution of the lease against the advice of both the listing and leasing agents. The tenant had provided a deposit, insurance certificate, changed utilities, etc.

The lease discussions stalled over a clause and there was no budging from either side. The condition regarding lease review had long run out, but the tenant had possession and was paying rent.

Fast forward a year. There was still no lease signed. When confronted, the tenant admitted it had other properties in its possession where it had never finished executing leases. We had been had.

The tenant has continued to pay rent to the landlord but, as it stands, no formal agreement on the lease has ever been reached. It’s a rather precarious situation for both to be in, if you ask me.

I am a gal of all trades and wear a few hats at my current job though nothing quite as esteemed as my 1996 Unity Western Days Rodeo Queen crowned…

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I am a gal of all trades and wear a few hats at my current job though nothing quite as esteemed as my 1996 Unity Western Days Rodeo Queen crowned…

Read more

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