Year End Review -- 2009 Real Estate

I have found that this time of year is a great time to look backward and forward. It's great to recapture all of the memories and experiences of this previous year and learn. Once, we had some good 'ole learning, it's also a great time to plan the following year.

What have I learned this year?

1. Real estate isn't always easy.
2. When real estate isn't easy, we learn a whole lot.
3. Hard work is frequently rewarded, but not always.
4. We know the results from not trying, and they are just about guaranteed to be nothing.
5. Fundamentals of business stand the test of time.
6. Cash is great!
7. Equity gives you options, having no equity takes them away.
8. Real estate transactions and leases are being done even in a tough market.
9. Customers and clients need advise from an expert.

What sounds like a good idea for next year?

1. Honor the relationship between me and existing clients.
2. Stay in touch with past clients.
3. At least do one productive task with a project each week. I.E. we know the results from NO activity.
4. Keep up the blog since it helps me express my business, but most important helps me focus on improvement.
5. Be relentless.
6. Ask questions.
7. Sell Birmingham. (Is that a lofty goal?)
8. Do the next right thing. I.E. if I make a mistake, make it better.
9. Be thankful for each day and have my senses tuned to what I can do and learn from my position or experiences.
   

Commercial Real Estate Tutorial Numero Uno

Cross Marketing Tutorial from Sam Duffey on Vimeo.

Update: Auto Industry

A few weeks ago I posted about the UAW and big three auto makers. Tonight I heard the CEO of GM say that if the US taxpayers didn't help them, then his company could be out of business within a month.

What do I say? Great! No more GMC Trucks, Chevorlet, Buick, and Cadilac. Therefore all of the buyers of those brands will have to buy another brand of vehicle. Maybe some of the former GM buyers will convert and purchase a Ford or Chrysler which would increase sales and likely affect their bottomline in a big way.

That is how the market works! It is efficient and effective. GET OUT OF IT'S WAY!

Coldwell Banker Commercial Viewpoint S.E. 2008Q3

Hey ya'll! Here's a great resource that I'd like to make available to you. Many of my readers do business in the southeastern market and the information in the linked newsletter should shed light upon our market.

Coldwell Banker Commercial provides this newsletter to me and I'd like to pass it along to you for review.

Again, just click the link below.

VIEWPOINT NEWSLETTER

I am pretty big on data so take a look at my other posts or come back soon. I like to share local data on a regular basis.

Update: Manufacturing Index Falls

Industrial owners and developers pay attention to the recent decline in the Manufacturing Index published by the Institute for Supply Management. If the demand for supplies continues to decline, users of manufacturing and storage space may choose to reduce their footprint to accommodate a revised business model.

The index has fallen about 7% over the past month and a whopping 16% over the past two months.

What do you do if a tenant has trouble? Well first, we advise our clients to analyze the tenants business model. If the model or business plan is sound then you might want to work with them within your capacity as the landlord. Over the long-term many businesses will see ebbs and flows of growth and contract. Lord knows, we may see tough economic times that impact most businesses regardless of the soundness of their model.

If you determine that the tenant has a satisfactory plan, you can consider:

• reducing the tenant's footprint.
  
• reducing the tenant's rent.

The tenant's footprint can be altered if their requirements have changed and the physical characteristics of the building allow.

I know landlord's don't like to reduce rent, but in some cases some rent is better than no rent. You should weight market factors in the decision to reduce rent. If you believe in the tenant's plan to survive what they are going through, you should keep any altered rental rates short-term. You could also negotiate that the reductions in rent be reimbursed at a later date when the tenant could have remedied his problems.

Update: Birmingham, Alabama Mayor Larry Langford Arrested

This morning Birmingham Mayor Larry Langford was arrested on federal charges relating to kick-backs received during over a multi-million dollar bond deal. The Birmingham News article reports that he is currently being held at the Jefferson County Courthouse.

This is an update, from an August post where my lyrical ditty didn't make as much musical impact as I expected. I guess some things aren't appreciated like they should be.

Mayor Langford, thank you for putting Birmingham on the map. What do I owe you?

By the way, tens of thousands of dollars in new clothes can't buy you style. That vest is hideous. Maybe get a nice suit next time.