Commercial Investment Real Estate

SEP-OCT 2017

Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.

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COMMERCIAL INVESTMENT REAL ESTATE 34 September | October 2017 Difficult ased in New York City, Paul Waters, CCIM, is chief operating officer for Integra Realty Resources, one of the largest independent appraisal firms in the country. His company deals mostly with lenders. And lenders don't have time for heart-to-hearts. "Our clients want hard data, not empathy," he says. This sentiment will sound familiar to com- mercial real estate advisers with large firms in pri- mary markets. Participants in sophisticated, insti- tutional-level transactions often pride themselves on using only cold, calculated analyses of the facts to arrive at a go or no-go decision. In the era of big data and online sales platforms, this approach is easier than ever. But for advisers to less experienced investors, the commercial real estate transaction remains all too human. It's their job to navigate through the emo- tions, the competing interests, and the miscom- munication to get to that closing. "You can't prevent conflict," says Byron Smith Sr., CCIM, president of Metropolitan Realty Group in Vienna, Va., and a CCIM instructor. "But you can try to reduce it as much as possible." Challenging Deals The problem isn't always as simple as disagreement over price. "The underlying factors are always fear and greed," says James A. Palmer, CCIM, broker with RE/MAX Hallmark Realty Group in Ottawa, Ontario. "They're always there subconsciously, in our clients, other brokers, and ourselves." When faced with such challenges, the commer- cial real estate adviser has the opportunity to step into the role of psychologist. "Like a therapist, the adviser is there to probe and examine to get to the solution," Smith says. Lydia Bennett, CCIM, CPM, owner of CRE West Coast in Bellingham, Wash., sees fear among an increasing segment of novice transaction parties: the families of aging owners and investors who have input on financial decisions. "This situation is prob- ably becoming more common as commercial real estate continues to be owned by investors from afar, as well as family investment trusts," Bennett says. by Rich Rosfelder CCIMs use radical empathy to achieve positive outcomes. Deals B Negotiating

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