Real estate advisers can develop
strategies, research alternatives,
negotiate deals and manage relocations, but there’s one thing they can’t do —
be the client. Clients play a key role in the
effectiveness of the real estate process.
“The way a client participates in a real
estate project can significantly affect its
outcome,” says Jeff Shepard, principal with
CresaPartners in Orange County. “Certain
clients understand how to work with a professional real estate adviser in a way that
notably improves the results.”
Smart Business spoke with Shepard
about tips for partnering with real estate
advisers to achieve the most successful
results.
What client mindset enhances the real estate
process?
The first key point is that clients need to
stay highly flexible and adaptable during
the process. Their first choice may fall
through, then their second choice may not
work out, but they can still end up with a
great outcome. Tenants need to have the
willingness to reconsider and adapt their
ideas to fit their changing reality. It’s almost
certain that something unexpected will
happen in a real estate deal.
Next, clients need to pick a real estate
professional they trust — and then trust
that person. They’re hiring real estate
advisers because they have expertise
beyond what’s available internally. That
means once clients hire advisers, they
should listen to them, consider their
advice, benefit from their experience and
insight, then make their own decisions
based on all the input and data. Some
clients reluctantly receive input because
they themselves have some real estate
negotiating experience. It’s important to
remember, however, that skilled real estate
professionals have a vast store of skill and
knowledge from closing 50 to 60 deals a
year, and their expertise should be leveraged.
How can clients’ timing affect the outcome of
a project?
Clients should decide when they think a
real estate project should start — then
move that date three months earlier. Just
like in theater, every real estate negotiation
has an X factor — the unexpected element
that will cause delays. Starting ahead of
schedule allows enough time for the X factor to occur and for decision-makers to
adjust and make unrushed, sound business
decisions.
Once the real estate process is underway,
it’s critically important that clients respond
quickly to opportunities. Sometimes a
property unexpectedly becomes available
or a landlord creates a short window when
new clients can usurp a delaying tenant. By
responding quickly, clients can gain the
prime negotiating position in a transaction
and hence better control the process for a
favorable outcome.
How does client interaction with the landlord
impact negotiations?
Landlords would rather negotiate directly with tenants. As such, clients need to be
prepared for landlords to try to bypass
their real estate adviser. Clients must set
the tone with their landlord from the beginning by communicating clearly, respectfully and decisively that they have hired a real
estate professional they trust to guide them
through this important and complicated
decision process. By reaffirming their complete support of and trust in their professional representative, clients maximize
their leverage instead of undermining their
real estate adviser and the negotiation
process.
What information should clients provide for
their advisers upfront?
At the initial project meeting, all the people who will need to weigh in on the real
estate decision need to be present. This
ensures that everyone helps define and
clearly understands the objectives, strategies and tactics from the beginning.
Throughout the project, anyone who will
be involved in the final decision should
receive communication about the justification of and explanation for any decisions
or actions. This method fosters support,
cooperation and involvement throughout
the transaction so that decisions can be
made quickly and efficiently.
What role do clients play (and not play) in the
real estate process?
All participants need to play their part on
the team. At some points, the real estate
professional is the appropriate leader. At
other times, the real estate adviser directs
the client to take a lead role. It’s important
that clients be willing to trust their adviser
and play their part in the process. In addition, creating an internal project team
upfront and clearly defining each person’s
role facilitates this process. This team can
help give the project a clear direction, keep
the work on track and make timely decisions.
JEFF SHEPARD is a principal with CresaPartners in Orange
County. Contact him at [email protected] or (949)
706-6640.