How to Gain an Edge in the Investment Sales Arena

It is not uncommon to hear industry pundits sum-up to the current investment market for commercial real estate assets as "too much money chasing too few quality transactions" resulting in a sellers market. While current market conditions are clearly favorable to those looking to dispose of assets and bode well for our sell-side players, there is no shortage of solid investment sales opportunities for those who are properly advised and represented in the identification, structuring and acquisition of investment grade commercial real estate.

One of the most important aspects of negotiating the current market is to select the proper advisor. Whether you are buying or selling there are typically two options available for representation:

1. Retail Brokerage Operations: This category is comprised of National, Regional and Local commercial real estate brokerage companies. The bigger the brand the more diversified the service offerings and footprint provided. The major brands will have good coverage of Tier 1 and Tier 2 markets but will often not have the same amount of inventory or market knowledge of smaller markets like their regional and local competitors.

2. Commercial Real Estate Investment Banks: This category is comprised of firms that will offer the broadest range of service offerings and generally a higher caliber of professional representation than offered in the retail brokerage houses. Investment banks will take a capital markets approach to acquisition and disposition services as opposed to just marketing captive listings.

Regardless of the service provider you choose in assisting you with your acquisition and disposition needs, you should consider finding a firm that offers as many of the following services as you can:

• Financial Services

• Capital Markets Services

• Advisory Services

• Appraisal Services

• Market Research

• Feasibility Studies

• Letters of Opinion

• Fairness Opinions

• Due Diligence Services

• Project Management Services

• Construction Management Services

• Owners Representation Services

• Asset Management Services

• Financial Engineering and Transaction Modeling

• Investment Analysis

Authored by Mike Myatt
Executive Managing Director of Pacific Security Capital
Contact Pacific Security Capital today 1-800-844-6085