Shorts: Not Quite Blogs 👨🚀
CEG "shorts" are Jeff's career and industry tips and advice as well as answers to common questions written in short form. Read our blog for more in-depth information about the commercial real estate business. Blogs and shorts alternate Fridays. Subscribe to our blog to receive both via email.
Renew, Prepare, and Enjoy 👨🚀
It’s spring, the season of renewal and garden prep –– for my wife and neighbors anyway! 😉 I do know if you plant too soon in the spring, you could end up losing your crops. If you wait too long, you may lose out at harvest time. For commercial real estate owners and tenants (my wheelhouse 🙂), leasing requires strategic timing as well. Spring renewal is seasonal, but lease renewal could land year round. It’s important to know when a lease is up and prepare early.
The first thing any tenant or owner should do is connect with a broker a year before a lease is up. Finding a replacement tenant or a new space takes time. Timing also impacts negotiations for renewal. Brokers know current typical lease concessions, market conditions, availability, and rental rates. Their job is to negotiate for you and save you time, stress, and money. 💵 You want them on your team to get the most advantageous deal done and then enjoy the results.
Curious if having a broker is going to cost you? Check out my prior blog, “How Brokers Get Paid.” For examples of broker negotiated commissions, click here.
4-12-2024
Who Pooped in the Pool? 👨🚀
On our spring break vacation, Levi and some buddies he met were swimming in a pool. (Love it when there are kids his same age vacationing too 😀) They saw what looked like a landscaping woodchip at the bottom of the deep end. Challenge accepted. Wearing their goggles, they dove down to grab it. I won’t go into the details, but they soon realized it wasn’t a woodchip. Human? Not sure. Animal? Perhaps –– there was grass in it. 💩
An adult male blamed the kids. (As if they would poop where they wanted to play 🙄) Instead of listening to them, thinking about all the options, and actually solving the problem, he bullied, lied, and made the situation worse. I bring this up as it became a teaching moment for Levi and his friends.
Some see problems and point fingers. Instead of trying to fix the situation, they dwell on blame. Some see problems as negatives. (Ok, yes, poop in the pool is negative 😬) After 30+ years in the commercial real estate, I know roadblocks, detours, and obstacles are a constant. But I see problems optimistically and enjoy solving them. They’re a mental exercise –– a puzzle and an opportunity to learn and figure it out.
Problems also bring people together and they bond in the fixing. In commercial real estate, of course, smooth deals are best, but new brokers learn much more when deals have complications. Same for kids in life.
3-29-2024
Health Is Wealth 👨🚀
Another one of the many things I learned from John Allen was to get an executive physical as a baseline and to repeat it periodically. An executive physical doesn’t mean it’s just for company executives. Really, anyone can benefit. Although they’re offered by different providers, I chose the Mayo Clinic Hospital in Rochester. As a busy person, it gets me a detailed and comprehensive exam, lands me in the system of the world’s best hospitals, and puts my mind at ease. The goal is to figure out issues and learn how to prevent potential health problems in the future.
I spent 3 days in Rochester, as executive physicals are a comprehensive look at what’s happening with your mind and body –– way beyond a standard checkup. Designed according to current scientific research and best practices, they’re customized for age and risk factors and often include a physical exam, preventive screenings, lab work, imaging, lifestyle assessment, and 1:1 review/counseling. It’s a lot, but well worth it.
Catching medical issues and hidden diseases early, not only benefits your work and a company’s productivity, but also the quality of your life elsewhere. They can be costly, which may not work for everyone. Even so, this is a reminder of the importance of routine checkups and open communication with your doctors. Perhaps, coordinate with your primary care doctor and insurance company about a modified version designed for you. After a few days at Mayo, I was relieved to get a great report! 😊 Let the fun continue!
3.15.2024
Seize the Day 👨🚀
I’m writing this on leap day, Thursday, February 29, 2024. It’s an extra day, and I want to make it count! What does that mean? And how can we seize each day?
Here’s my list (no particular order):
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Beat the sun up every day!
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Work out.
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Learn something new. Do something different. Grow.
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Help someone.
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Connect with someone new.
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Set and meet at least one business or investment goal each day. Knock out each step with gusto.
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Take walking breaks and/or meetings. Clear my mind to think creatively.
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Laugh and have fun as often as possible.
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Eat foods and drink beverages that add to my well-being, not detract from it.
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Enjoy nature. (I admit, sometimes it may be just a glance at the park across the street, but that’s something!)
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Spend quality time with family. (The sunrise photo is from our recent ski trip up north. 😀❄️⛷️)
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Look into my dogs’ eyes.
We each get 24 hours. How do you make your day count? I’d love to hear your thoughts.
3-1-2024
Bouncing Dogs, Joyful Steps 👨🚀
I’ve started a new routine in a familiar place. There’s a wooded area in our neighborhood with a view of our incredible skyline. It’s perfect for taking the dogs to get physical and mental exercise. (Yes, tire them out! 😉😆) With the tall grass and fallen trees to jump over and plenty of scents to smell, they love it. You can see the joy in their bounce, wagging tails, and eager eyes.
Studies show that human-to-dog eye connection between you and your dog is known to make both feel good –– even more so for humans. It’s healing. The dogs often join us in the office and sometimes I walk them with a team member. In fact, walking meetings are intentionally built in our schedules. They’re a great change up from typical meetings, emails, and phone calls. We find they bring on more creative thinking, build stronger connections between team members, and are simply more fun.
Between nature, happy dogs, and fresh air, I feel the difference this routine brings to my life balance and well-being. It calms me. And that’s a beautiful way to live and work.
2-16-2024
Rules of the Game 👨🚀
We encourage reading and sharing books at CEG. A team member told me about a book she was reading called, “The Lost Art of Listening,” by Michael P. Nichols, PhD. This line jumped out: “To participate effectively, you need to know the rules of the game.” True about listening, but also true about business and life.
Commercial real estate is a relationship business with a professional culture. Although we operate under clear rules and regulations in contracts, deals, and investments, in our culture, we have unwritten rules. As brokers, we deal with highly professional people every day. If they’re not at the top level yet, they may be come a year or two. I advise newcomers to keep it professional. Operating with honesty, integrity, and transparency goes a long way.
It’s also a small world. One of my favorite things about the CRE culture is the willingness to embrace newcomers and mentor/coach. No matter how big the brokerage we represent, we help the little guy/gal. I’m a product of that. Even though brokers aren’t from the same company, we work together to help clients. That’s how the business stays effective, professional, and growth centered.
2-2-2024
It’s Not Insignificant 👨🚀
As I scrolled through my social media feed earlier this week, I saw Martin Luther King, Jr. quotes and posts from people and companies celebrating his legacy. In the spirit of the week, I offer one more.
“No work is insignificant. All labor that uplifts humanity has dignity and importance and should be undertaken with painstaking excellence.”
I, too, believe no work is insignificant. Our work is connected and often dependent on each other. Last weekend, I was a guest on Todd Rooker's podcast, Cover Your Assets. With my son, Levi in tow, we talked about my first job, a paper route. Beginning about sixth grade, I pushed a cart of newspapers through the rain, snow, and sleet and continued until I joined the Army. As I collected payment from customers, some took the time to ask me about school. They saw me, and that uplifted and changed me. One might think that delivering newspapers was an unimportant kid’s job. But in that cart, I carried information and connected families to the outside world. I, in turn, learned how to connect with all kinds of people, the value of a strong work ethic, and the joy of earning/saving money. I started young.
How would you define “uplifts humanity"? Do the workers out in the cold removing your garbage uplift your day? Do they make it a better place to live? I would argue so. What about the workers harvesting our crops? Stocking store shelves? What if they didn’t approach their job with excellence?
We’re all connected. And being seen and appreciated for our contributions is important. The affiliations I made throughout my life have had the biggest influence on me. That’s why my almost nine-year-old son joined me in the studio. Experiencing the value of people and work, defining excellence, and building his confidence at a young age is part of my legacy.
1.-19-2024
Let It Go 👨🚀
As we begin a new year, it’s a good time to let go of heavy baggage and travel light. Yes, carrying a lot of baggage on a plane (rocket 😀) or in a car can weigh you down, but I’m talking about psychological or emotional baggage.
I told a friend recently, “I don’t forgive for THEM, I forgive for ME.” I have to. I can’t carry hurt, anger, or disappointment with me. The bag would be way too heavy to haul around. As Erykah Badu sings, “One day all them bags gon’ get in your way. So pack light.”
By forgiving, I’m removing the hold the person has on me. It brings me a sense of peace and allows me to live. Holding onto a grudge, disappointment, or hurt would only harm me, not the other person. It’s mine to keep or mine to let go. It has nothing to do with them. It’s my choice, my power. And I don’t want the stress, negative effects on my health, mental torment, or most of all, a halt to my drive to move forward.
Forgiveness is a process. And it takes practice. And I wish it for you.
1-5-2024
Enthusiastically Dedicated 👨🚀
I think dedication breeds optimism. Being committed to something provides purpose, whether family, work, helping people, a hobby, or healthy living. It also becomes an avenue to achieve and then build on success. Dedication is ongoing and requires intentional strategy, thoughts, and actions.
To me, it also requires belief –– a belief in purpose. Goals are easier to obtain when a clear and known purpose drives the actions. As our CEG team continues to grow, I want each team member to be on the same page as to why we are here and how we go about doing our work together. We are here to help people and that shows up in different ways.
In addition, I notice that our team has more fun together when there is clarity around purpose. There’s an energy when everything clicks, and we’re all working to make a deal happen or support a client. I like to focus on the lives we’ve impacted.
So in that spirit, I offer you these two questions for reflection. What are you dedicated to? In what way has your dedication positively affected one life this week?
12-8-2023
Happy Holidays! 🎄👨🚀🎄
Thanksgiving to New Year’s Day is known as the festive season. And since the CEG team is all about fun, joy, and giving, we’re here for it!
We wish you all peace, laughter, and good health this holiday season! And for those of you that may be struggling, take gentle care.
Merry Christmas!
12-22-2023
Food, CRE, & Gratitude 👨🚀
Happy Thanksgiving and Short Blog Thursday!
As I get ready to eat my Thanksgiving feast with loved ones, I’m thankful for the skilled labor and commercial businesses that made these dishes possible. From the land the food was grown in and on, to the businesses that helped produce, transport, and provide it, we would not be able enjoy our delicious tradition of sharing food with friends and family without each step. And when you include all of the commercial properties that house businesses that support this commerce and infrastructure, it’s quite amazing.
That’s part of why I love what I do. It has real life consequences and plays a part in making the lives of people and their families better. So with that thought, I wish you a day filled with good food, joy, gratitude, and appreciation.
Cheers!
11-23-2023
2M+5M by Veterans 👨🚀
Almost two million businesses and five million jobs––brought to you by veterans. And CEG is one of them. In fact, veterans are 45% more likely to be entrepreneurs and small business owners than non-veterans. For most of us, it’s the persistence and discipline we developed from all that training driving us––especially the Airborne! 😉
Although observed today, tomorrow is Veteran’s Day. Originally, it was called Armistice Day in remembrance of the end of World War I on the 11th day of the 11th month at 11:11 am. Today, it’s a way to honor all veterans.
An important way to appreciate veterans––today and every day––is to support their businesses. Look for those verified as Veteran-Owned Small Business (VOSB) or Service-Disabled Veteran-Owned Small Business (SDVOSB). Professional services, construction, retail trade, healthcare, accommodations and food service, real estate, transportation, and finance are just some of the sectors you’ll find veteran-owned businesses. For each dollar you spend, you not only keep that veteran going, but also all of the people and families they employ. That’s a great way to show support.
You can find veteran-owned businesses across the country, including Commercial Equities Group, by using this online directory.
11-10-2023
Dogs! Dogs! Dogs! 👨🚀
If you’ve been a long time reader of my blogs, you know that I believe givers gain and gainers give. Giving back, helping out, and contributing to our community is satisfying and rewarding. Josie and I felt that deeply when we adopted our rescue dog, Indie (on the left). She’s been a great addition to our family and a buddy to our older dog, Snoopers (on the right).
You’re probably wondering why this broker is talking about dogs instead of due diligence, negotiating deals, CRE investing, warehouse space, etc. I believe in contributing to our community and the benefits of networking. I wanted to share an opportunity for you to do good and network. Remember, the next collaboration, partnership, or connection could be sitting next to you. You never know what opportunities follow after meeting new people and introducing those you know to new people.
I also support the work of Jill Goldstein and the Pause 4 Pause MN. They've saved over 50,000 dogs and cats and spayed/neutered more than 35,000. So, I want to let you know about this fantastic opportunity –– one that CEG is putting money where my mouth is. We’re happily a sponsor for their 12th annual gala, a time to celebrate lives that were saved and positively impacted over the last year.
A Tail Wagging Affair • Saturday, November 18, 2023, 6-11 pm
Marriott NW, 7025 Northland Dr N, Brooklyn Park • Event information
It’s community event filled with entertainment, dinner, a silent and live auction, and fun. Not only will you help save dogs and cats, but you can also meet new people. And pet owners are known to be happier than those without. 😀 Commercial real estate is a relationship-industry. Networking events are a perfect way to build professional relationships and create beneficial and productive connections. Not to mention, it saves dogs! And cats, too.
10-27-2023
Lease Structures 👨🚀
It wasn’t by happenstance that the second CEG blog I wrote was Understand Leasing Structures. What’s NNN? What’s a gross lease? How are they different? What’s CAM?
All brokers get these questions. Commercial real estate terms are important for clients to understand. Leases can be complex, and as brokers, we want our clients to make sound decisions. Whether a tenant or investor, you want a broker’s expertise on your side. We help negotiate terms and make sure clients don’t end up liable for unforeseen financial penalties.
In our Airborne unit, we had a motto, “I will be sure always.” Why? Because if you make an error, you’re dead. I take the same approach when helping clients navigate leases. We want to make sure it is the right deal to meet their CRE business and investment goals. Always.
10-13-2023
CRE Professionals and Community 👨🚀
The idea of using real estate as capital in the US dates back to the 1700s, when land was used in place of money to settle debts. Now, it’s an industry supporting 15.1 million jobs, and in 2022, contributed approximately $2.3 trillion to GDP. That’s a lot.
But ultimately, the commercial real estate business is really about community. Those working in it––designers, developers, investors, brokers, and managers––have to be in touch with needs, wants, and lifestyles of their community members. We have a direct impact on where people work, shop, play, and some live. Those in CRE are constantly recognizing and evaluating the needs of individuals and the market. We are connectors of buyers and sellers with demand and supply.
So we network. We meet people, talk, and most importantly listen. Back and forth conversations drive community, but listening is when you learn. Listen to your Uber driver, housepainter, or plumber as much as your business leader, analyst, or consultant. All are part of the community that drives what we do. It’s our job to meet needs, act with integrity, and help our community prosper.
9-29-2023
The Market Is 👨🚀
Yes, the office sector, which is under 20% of the total CRE portfolio, has challenges. But retail is still coming back, mixed-use buildings are on the rise (literally), and industrial is in short supply, making it the hot sector. Overall, the lag of office doesn’t represent the whole market.
The office sector’s challenges provide a chance to think creatively. Throughout history, commercial real estate properties have innovated and evolved. Advances in technology, how people work, where people work, and new ways of doing things have always impacted CRE. Today is no different.
In some ways, it’s an exciting time. Challenges are new opportunities, and they allow the market to move forward. The market is resilient.
9-15-2023
Heading Our Way? 👨🚀
With summer winding down and kids back to school, deals start popping fast in commercial real estate. At CEG, we’re looking to add an associate (or aspiring) broker to our growing team. We seek someone that is motivated to learn and extremely resourceful. They must also have a growth mindset and entrepreneurial spirit to mesh well with our team. And of course, if they plan to work in the relationship business of CRE, they must be a people person.
If you know of anyone in your network who you think has the drive to become a successful broker, please send them our way. If you’re looking for a change, at CEG we have a fun approach to commercial real estate. For more details on the position, check out Career Opportunities on our website. Email resume to hello@cegspaces.com if interested. Please spread the word! Thank you!
9-1-2023
Leadership Thoughts 👨🚀
I’m the type of person who likes to start my day early. When it’s quiet, I get things done––answering emails, finishing up paperwork, or knocking something else off my list. A favorite is to take an early morning walk. It meets my activity goal, clears my head, and gets me focused for the day. Sometimes I listen to podcasts. On one of my recent walks, I thought about leadership.
The two most important priorities for me as a leader of a growing team are trust and having a growth mindset. At CEG, we’re a team with a common purpose and always ready for fun and laughter. Part of the ease of working together is that we’ve built trust through our actions and words. I know my team is a group of professionals who take care of business. They know I am a leader who truly cares about them and wants to see them happy, healthy, and increasing their personal development. We value each other’s expertise and use that to fuel our growth, as a company and individually.
There’s an energy about working with a team that’s honest and open. We support, cheer on, and challenge to keep us moving forward. It builds mutual trust and a determination to figure it out and do it better. That’s CEG.
8-18-2023
Ups and Downs 👨🚀
Life is filled with ups and downs. Sometimes you’re buried in stress, and other times you’re riding high. Often, you can’t control what happens, but you can control how you deal with it.
I was having a bad week recently––a lot of little stresses adding up. Then I read about single mom who was having a tough time and decided to help her out. It instantly changed my perspective. We all have troubles, but they come in different levels. What I was dealing with was nothing like what she was dealing with.
Random acts of kindness are easy to do, and the science backs up the benefits. Is it nature’s way to urge us to look after each other? To see the humanity in each other? Definitely seems like it. When you help someone else, you end up positively impacting them, others around, and yourself. As I’ve said before, givers gain.
Suggested video (it’s short and animated, 2:15):
The Science of Kindness, Random Acts of Kindness Foundation
8-4-2023
Smart Way to Use Seller Carryback 👨🚀
Seller carryback, also known as owner financing or seller financing, is a creative way for buyers to invest in CRE. Especially if you want to preserve your cash for another deal. Seller carrybacks are when the seller carries all or part of a mortgage and collects monthly payments from the buyer. The sellers become the bank.
For example, a building owner, let’s call him Don, is selling a property for $1,000,000. Over time, he accrued $250,000 in equity. He’s the perfect type of owner to ask in negotiations if he is willing to be flexible.
If you need $250,000 up front to purchase the building, there’s no hurt in asking Don if he would be willing to offer a carryback credit of $100,000. That means the amount of cash you need to put on the table is lowered to $150,000. You would pay him 6% for five years on his $100,000, which is a higher return than most money markets today.
By making the deal more flexible, Don makes the property more marketable and defers his capital gains taxes. For you, it’s a way to use our $100,000 for the next property and continue build your CRE investment portfolio and your wealth.
7-21-2023
Partner Up! 👨🚀👨🚀
Let’s say, Andrea’s dad owns a printing company that he started in his twenties. He’s now 65. The business was successful and thirty years ago, he bought the building he was originally leasing. He now owns it outright and is sitting on a lot of equity. Andrea wants to carry on the family business, but they know, she won’t be able to buy the building and the business at the same time.
They could work out an affordable deal for her, but her dad has dreams. He wants to travel! The Grand Canyon, The Galápagos Islands, and Alaska are a few destinations on his list. So they need a creative solution. That’s where CEG Investments comes in.
In my blog, “We Buy Buildings, Too”, I talked about how we connect investors with clients that need partners to purchase buildings. Under CEG Investments, we also help clients like Andrea maintain ownership. We come in as investors and buy the building with Andrea as partners. She then has a five year lease with renewal options as our partner, and her dad gets his equity and the money to travel. Another win-win.
7-7-2023
Answer to a Common Question 👨🚀
How do commercial real estate brokers get paid?
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If you’re looking to lease or buy a building or renew your existing lease, broker services are paid by the owner, not you.
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If you’re looking to sell, lease out, or sublease a property, you and your broker come up with an agreement on how they get paid.
A broker’s commission is percentage of the total paid in a transaction, not an hourly pay rate. By law, a commission rate must be agreed on by the broker and client before partnering. Although most rates fall within 4-8% percent, there is no set industry standard. Negotiating benefits both parties.
For example, if we, at CEG know a property will require more work to get a deal done, we can negotiate a higher rate. However, if we know that property will go quickly, we don’t take that same higher rate. Negotiation allows for fair compensation on both sides.
As I wrote in my blog, Why It’s Important to Use a Broker When Leasing, brokers are people you want on your team. They save clients time and money and are protection when “you don’t know what you don’t know.” Not only do brokers bring current market expertise, negotiation skills, and deal structure knowledge, they have the resources and connections often needed to get a deal finalized.
6-23-2023
Let's Move! 👨🚀
Let’s move! That was my challenge to our team in May. It’s easy to work, work, work all the time. To be so engrossed in what you’re doing, you don’t realize that hours flew by. Working too much, especially in front of a screen, is bad not only for physical health, but also emotional health. With the underlying message of happy life, I wanted our team to prioritize their health. Neighborhood dog, Reggie, agrees.
Dan Buettner, the author of Blue Zones––Lessons for Living Longer from the People Who Lived the Longest, identified the five places in the world––called blue zones––where people live the longest, healthiest lives. One of the traits identified is blue zone populations don’t carve out a workout time but incorporate moving in their daily lives. They end up moving every 20 minutes or so. Walk to the coffee shop, dance to a song, be playful with your dog, park further away––all these little things matter.
I challenged our team to track their steps to take note of how much they moved each day. During our weekly meeting we shared our results and health tips, as a way to hold each other accountable and offer encouragement. The goal was growth, not highest steps. It was bumping up your game. It’s known people who are happier and healthier at work are more effective and productive. But it also means more fun, and fun keeps the ball rolling. Again, Reggie agrees.
6-9-2023
Best Investment? 👨🚀
My mentors used to tell me, with paper assets you can get lucky from time to time, but you have zero control. You’re dependent upon other people making decisions, which may or may not bring you a return. It’s easy to go on an app and buy stocks. But sometimes easy doesn’t mean best.
With commercial real estate, you’re in control as much as your knowledge of the business. Investing in CRE is not only about having a physical asset that you can see, touch, and walk through, but it’s also about your decisions. You decide who your tenant will be, how much rent they will pay, and sometimes, how long they stay.
Purchasing a commercial property may appear risky because you don’t understand commercial real estate. But you don’t have to go it alone. Talk to an experienced broker who also knows investments. Listen to podcasts, read a book, or take a class. Commercial real estate investment is not that scary once you “know what you don’t know” and then do something about it. Reach out to me and the CEG team. We’re here to help, advise, and meet your investment and business goals.
5-26-2023
Wonderful World 👨🚀
What’s that Louis Armstrong lyric? “…They’ll learn much more, than I’ll ever know.” The other day, my son Levi and I were hanging out when something came up that he knew, and I didn’t. So I asked him, “How do you know that?”
“You haven’t spent a million minutes on an iPad, Dad.” 😆
I responded, “That’s right! When I was a kid, I spent a million miles on my bike!” Well, probably both are an exaggeration, but you get my point.
By the way, both Josie and I balance computer time with outdoor activities, family time and varied experiences. He’s not always on his iPad. But the exchange got me thinking about how I learned to “figure it out” as a kid, compared to how Levi does now.
My bike was a source of freedom when I was a young. I learned the city, could move more quickly from one place to another, and met people––lots of people. I started networking at a young age! 😆
That meant that I could bug those people––mostly my neighbors––to figure things out that I couldn’t in my home or school. I wanted to learn and was curious. How do you fix things? Why are you doing that? What does that do? Like I said, I bugged them. 😆
For Levi, the people of YouTube have become his neighbor-teachers. He spends “a million minutes” watching educational videos––learning things that he can’t learn from me or Josie. Even though I find myself watching YouTube videos and Googling things now to figure it out, I haven’t lost the foundation of my biking days. Having face-to-face contact and developing connections while figuring it out, is still a big part of who I am today.
What will it be like for Levi when he’s my age? We shall see. As Louis sings, “What a wonderful world.”
5-12-2023
Take It to Another Level 👨🚀
I posted a video on social media with my business coach, Todd Rooker. We got into a conversation about levels within a person and their goals. I’ve discovered that Todd has a unique ability to help people realize they’re worth more than they may have been told––in their profession and while growing up.
Everybody has another level inside them. How do we as mentors, bosses, and co-workers pull it out? Are we intentionally helping people move more confidently to achieve their goals? I was doing well before working with Todd. But now, my business and my investment portfolio are at another level.
He helped me restructure and grow CEG, act on things I had in a “later” pile and take the leap to grow my investment portfolio. He got me out of the weeds, kept me focused and organized, and helped me see the map to “another level” future. I’m forever grateful for that. My hope for all of you is that you have someone to inspire, support, and guide your professional growth. It’s never too early or late to start. You can actually teach an old dog new tricks. 😆
4-28-2023
Let's Make a Deal! 👨🚀
Since the weather has warmed, my son, Levi, and I have been getting out there––biking, walking, and playing basketball. We’re soaking up the sun!
I value my time with young Levi and aspire to be the best father I can be each day. Our father-son times are not only active but also mentally engaging. Kids are sponges! And Levi is getting smarter every day! When I take him to school or pick him up, I quiz him on five new spelling words. I want him to be a person who figures things out, so I’ve given him electronics and let him take them apart to discover how things work.
I came from very humble beginnings, so learning the ins and outs of finances was not something I got from home. I want Levi to be mechanically inclined, intelligent, and have a mind for finance. I especially want him to understand money––how to build wealth, manage finances, and understand taxes. I want him to be financially literate. So we start small and make it fun. We posted a video this week on Instagram and Facebook where Levi makes his first CRE deal! Check it out––dog cameos included! 🐾😀🐾
4-14-2023
Get Your Property in Order 👨🚀
With below average temps and a lot of snow this year––and even though we’re well into meteorological spring––we can’t quite break out those spring cleaning and landscaping jobs…yet. But now is a good time to get things in order.
It’s time to critique your property and schedule the areas that can greatly increase its monetary and perceived value. Curb appeal not only impacts a tenant’s business, but also the owner’s property management reputation and the property’s market value. Review your budget to make sure you assigned enough funds to do annual tasks––like restripe parking lot lines, repair damaged concrete, fill potholes, and retouch chipped paint.
Once it warms up, plan to address dead, dying, neglected, and overgrown landscaping. Don’t forget to pull the weeds growing into curbs and sidewalks. Properties that “look good” are easier to sell, lease, and draw customers.
Read more: Chain Saws, Machines, & Spring
3-31-2023
Green, Green, Green 👨🚀🍀
Happy St. Patrick’s Day to those who celebrate! It’s the season of green––green shamrocks, green beer, green clothing––even though I look out my window and see white, white, white. So how does green play out in commercial real estate? If you don’t want to be green with envy, try being green with CRE. 😉
The first thing that comes to my mind when thinking about green in CRE is, of course, investments and money. Just think about that Andrew Carnegie quote, “90% of millionaires become so through owning real estate.” CRE investing became their pot of gold. (Piece of the Pie blog)
Next, I think of sustainability. Buildings with renewable green energy have been a trend in CRE for years. In 2021, the EPA listed Minneapolis and St. Paul at 15 on the list of top large cities for ENERGY STAR certified buildings. We have a ways to go, but the trend is there––says the guy who has solar panels and drives an electric car. 😀
Finally, as warm weather approaches and the snow melts, it’s time for my annual reminder to take care of the grounds and landscaping on your properties. Curb appeal is important in the selling and leasing of buildings. (Chain Saws, Machines, & Spring blog)
I hope to see you at the March Madness networking and charity event today. This year the event raises funds for the St. Paul Fire Foundation. Bring some people and join in from 10:30 am-5:30 pm at The Loop Bar + Restaurant – West End (5331 W 16th St, St. Louis Park, MN 55416). There’s a pizza buffet from 1-2 pm and Coors Light on tap until it’s gone.
3-17-2023 🍀 🍀 🍀
Warm Ride 👨🚀
Life feels different when you approach each day as a chance to help someone. It’s innate to being a broker, but I have a personal goal to help beyond CRE.
My close friends know that when it’s really cold outside, I get up early and offer rides to early shift workers. How can I not offer a warm ride to the guy who is hunched over in the cold wind, gripping his lunchbox, and struggling with each step? It’s really about seeing others with compassion. And we need more of that these days.
There’s plenty of research out there that supports the importance improving someone else’s life. For you, it may mean better physical and emotional health. Studies show helping others can reduce depression and increase self-esteem and confidence. You may live a better, longer life from simply acting with intention, kindness, and generosity.
From the formal ways of volunteering, mentoring, and teaching to the small gestures of kindness, helping can have a big impact and how we move through the world together. A warm ride may not work for everyone. The bottom line is that each person I help––even by other small random acts of kindness––puts me in a better frame of mind and fuels my success in business and life. And that’s a win-win.
2-17-2023
Creativity 👨🚀🚀
My son Levi is creative, artistic, and musical. He likes art class, and Josie and I love the work he brings home. (Even our friend who was an art teacher for many years is impressed 😀) We also got him an electronic keyboard last year, and he’s doing well with that, too. He may not end up as an artist or musician, but I want him to use the creative thinking skills he’s learning now in whatever profession he chooses later.
Creativity––the use of imagination or original ideas––benefits all professions. It helps us innovate and adapt to changing times. This week, KSTP aired a story about the three vacant MPS schools we have for sale and lease. Part of their headline was “buyer must get creative.”
I see the need for creativity in many deals, from getting them done to the use of the property. Industrial buyers and tenants need to think creatively how a space could work for them in this very tight market. On the other hand, developers and investors need to think creatively in how to reposition or redevelop a property. Like with the schools––or even vacant office buildings––how can we use our imagination to best help the community? How do we adapt to a changing market and increase our return on investments? Whether they are original ideas or new ways of looking at traditional markets, buyers must get creative.
Watch a short video:
2.3.2023 (Levi's owl painting, second grade)
Work Happy, Part II 👨🚀⚖️
Building off my last short where I talked about what makes my team “work happy”, I wanted to share a few more answers:
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Office yoga (And, has that really helped my back pain!)
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Flexibility (working remotely, schedules, and every day is different)
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Freedom to build systems (Yep, that’s our numbers/data guy!)
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Having a boss that understands work-life balance
I know the importance of work-life balance. I’m not saying I’m perfect at it (just ask Josie 😏), but I am committed to better achieve it. One of the things that makes CEG unique is our different approach. We want our personalities to show. We focus on getting the best deal done for our clients while also keeping our values in check. We’re fun, relationship driven, and proficient. We prioritize helping others and stay growth focused.
We all know the right employee/contractor fit is critical for productivity. For me, it’s important that I work with people that love what they’re doing and possess a drive to figure things out to get things done––all while enjoying work and life. That’s CEG work happy.
1-20-2023
Work Happy, Part I 👨🚀❄️❄️❄️
Because we’re starting off another year––and I have aspiring goals for the company––I asked my team, “What makes you happy at work?” There’s a common thread in their answers:
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Working with fun positive people
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Interacting with my coworkers and having fun with them
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Having people who can make you smile when you come to work makes your whole day
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Working with awesome people
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Seeing my teammates achieve success
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Working with a team that innovates, thinks creatively, supports each other, and definitely, laughs
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Being able to laugh and joke around while getting things done makes me happy
And that makes me happy, too! Take for example the snow video we posted on social media during, not this week’s storm, but the one before. Adam and I took a situation that could have been stressful––having to drive in a MN snowstorm––and made it something we could laugh about. Our collaboration not only ignited our creativity but made the day fun. Who doesn’t love having fun? And shouldn’t fun be had while doing the thing we spend so many hours doing each day?
Follow us on social media:
CEG Facebook: (Commercial Equities Group & Jeff Salzbrun)
Instagram: (@cegspaces & @jeffrysalzbrun)
LinkedIn (Commercial Equities Group & Jeff Salzbrun)
1-6-2023
Light, Joy, & Community 👨🚀🕎🎄❤️❤️❤️🖤💚💚💚
In the spirit of Hanukkah, Christmas, and Kwanzaa, here are some interesting space facts about the holidays:
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The International Space Station (ISS) is a microcosm of how Earth celebrates the season. With astronauts from different countries and cultures, the crew sometimes celebrates several times a year, depending which days are a priority to the current crew. Sharing traditional food is a highlight.
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In 2019, NASA astronaut Jessica Meir brought a bright pair of socks decorated with menorahs and stars of David to ISS. On the first night of Hanukkah, she posted a photo on Twitter of her stocking feet floating above a very large Earth in the background. Many people around the world liked, retweeted, and replied, “Chag Sameach” (Happy Holidays).
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The Apollo 8 crew (Frank Borman, Jim Lovell, and Bill Anders) were the first to spend Christmas in space. They beamed down a message on Christmas Eve for the world to hear.
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In 1973, the crew of Skylab 4 (Gerald Carr, William Pogue, and Edward Gibson) created the first space Christmas tree out of empty food cans. The robotic-looking tin tree was televised on Christmas Eve.
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The African American festival Kwanzaa is the namesake of a mountain on the Ceres, a dwarf planet. The International Astronomical Union decided that the seven mountains on Ceres should be named after seven harvest festivals around the world, including the US, Latvia, Peru, Cambodia, and India.
The CEG Team and I hope you have a “space-tacular” holiday season!
12.23.2022 👨🚀 👩🚀 👨🚀 👨🚀 👩🚀 👨🚀
Growth & Business 👨🚀🪴🏢
Driving to St. Cloud, I started to think about how plants are similar to business. (yes, my mind is always going 😆) Plants are necessary for the health of our ecosystem (says a guy who had to take Biology twice 😉), and business is necessary for the health of our economy. So if your business was an indoor plant, what type would it be? Does it have the right growing conditions?
Indoor plants thrive when the pot, soil, and the amount of water and sunlight are just right. When any of these are off, growth is stunted. Same with business.
Think about a plant’s pot as a commercial building. Is your space the right size for growth? Is it too large, so resources dry up? Like plant soil and its nutrients, does the space provide the essential needs and resources to flourish? How much do you have to feed or maintain it to make work?
If water is traffic, does your business have the right amount? Whether it’s industrial, hospitality, service, or retail, can business goals be met in the space you’re in? Some businesses don’t need physical traffic, but they all need commerce––which leads me to sunlight. Commerce depends on visibility––customers need to know about a business before they can do business with them. When dealing with the physical commercial space, is your business in the right location? Is your signage working for you?
If we think about your business as a plant, let’s make sure it grows. Make sure its “pot, soil, water, and sunlight” are the right match. Reach out if you want to discuss CRE and your business. We’re here to help!
12-9-2022
It's About Memories 👨🚀
Last weekend, we were at our cabin in northern Wisconsin. It was family time. I posted a FB (feel free to friend me) photo and footage of my son, Levi, snowmobiling on not much snow, mainly grass. 😉 I wrote, “If you wait for perfect conditions in life, you will miss out on many great opportunities and memories!”
I believe in those words––both in my personal life and with CRE deals. If you spend too much time on the fence or in “analysis paralysis”––overthinking and overanalyzing––you will miss out on fantastic opportunities. Sometimes when you see an opportunity, you just need to jump. Then you can see what happens. In every deal there is always a parachute and a reserve.
So during this holiday week, be grateful for opportunities and memories. Enjoy your time with family and loved ones.
The CEG team and I wish you a Happy Thanksgiving!
BTW, for those who worried about him tearing up the grass, I say, “Time cannot be replaced, but grass can.” 👨🚀
11-24-2022
Team Adds 3 👨🚀👨🚀👨🚀
Last week in my blog, I mentioned that we welcomed greats to our CEG team. Meet Brian Potratz, Alec McEhinney, and Adam Burke! 😀😀😀
Brian jumped into CRE through investing, which is an effective way to start. He eventually left his mortgage origination career of fifteen years to be a CRE broker and investor full time. After five years, he’s now working with us as a strategic growth partner and broker. During his free time, Brian enjoys time with his wife and three kids, playing golf, or being on the lake. We’re excited to have him join the team.
One of Alec’s strengths is to analyze the financial costs of risk and uncertainty. Having been an actuary, he’s an expert at building models and data systems, and that’s why he’s working with CEG. A proud Greek and avid reader, Alec also likes to travel around the US and Europe. He’s a numbers guy, and in CRE, they’re always good to have around.
Adam is another brilliant friend I’ve had in my circle for years. He joined the team this summer and is a definite value add. With a title of business development, he manages our public sector business, tackles internal strategy and systems management, and rounds things out by adding marketing support. Adam’s an artist, and his creativity and humor make him a great addition to the team.
I said in the summer blog, It Takes a Team, that I’m humbled by our team. Like these three, they all bring incredible strengths, and we continue to build connections and get deals done every day!
11-11-2022
CRE & GDP 👨🚀🚀
There’s been a lot of talk this week about the GDP growth annual rate of 2.6% for Q3. Although it’s good news, there’s plenty to unpack when talking about the economy. But the rate announcement got me thinking about commercial real estate and the GDP.
In 2021, the combination of developing new and operating existing buildings contributed to the GDP $1.2 trillion nationwide and $4.3 billion in Minnesota. Our industry supported 8.5 million jobs in the US, and I know at the local level, CEG has done our part and added a few fantastic team members since then. 👨🚀👨🚀👨🚀
Minnesota warehouses are big growth makers with a GDP contribution of $1.9 million, and offices are not far behind at $1.1. At CEG, we’ve been busy getting deals done in both areas. We recently represented an industrial client on an office/warehouse sale and got the deal done at $153 per square foot! We’re working on a $4+ million office/warehouse heading to close. In the last 30 days, we’ve completed multiple large office building investment deals. The deals are out there!
If you’re interested in investing and not sure how to get started, let me know. I can help. Also, check out my blogs, “Buying an Industrial Commercial Property in a Tight Market” and “Tips to Begin Investing in CRE.” We’re here to help owners, tenants, buyers, sellers, and investors get deals done.
10-28-1022
Looking for a Unicorn? 👨🚀🔭
Wednesday night, I was part of a city planning expert panel to address multiple development projects set to impact Vadnais Heights, White Bear Lake, Gem Lake, and Shoreview.
We are a facing a CRE shortage of light industrial buildings across the metro. People hear “industrial” and get nervous. Will it make the neighborhood ugly? Too loud? Too busy? My advice, stop looking for the unicorn and look at what you need. The demand for light industrial buildings with smaller bays is high and not expected to change any time soon.
I’m talking about the 3,000 SF spaces with offices up front and big doors in the back. These are incubation properties for companies that service our towns –– commercially and residentially. If we don’t build these spaces and continue to remove them for redevelopment, companies are forced to move further and further outside the metro. Then when we need them, they have to drive all the way in, and we pay for it.
Good investment properties are rooted in what is good for the community. Light industrial buildings are part of what makes vibrant and economically strong cities.
10-14-2022
We Can Save You Money 👨🚀
At CEG, we know space. When we say that, we mean more than finding, leasing, buying, selling, and investing in space. Let me explain.
I got into commercial real estate being thrown into the fire, learning every aspect of the business including property management, construction, maintenance, and tenant improvements. I was even the snowplow guy for many years while learning my craft!
This gives me unique insight and experience to work with owners, architects, and tenants to create win-win space plans. Clients often “wish” or say they want a sink but have no idea the plumbing is on the other end of the building. A part of our involvement at CEG is to sort these things out, saving our tenants and owners often unnecessary costs.
We can help owners and tenants decide where the best place to put their money. What changes are really necessary for functionality? What’s the best way to use your budget?
Helping is one of my missions in life, professionally and personally. Reach out to our team if you want us to help you save money.
9-30-2022
T-Minus 10, 9, 8… 👨🚀
As an owner, tenant, and client, what do you need to do ahead of time to be prepared to launch a deal? When the time is right, will you start from a strong position?
Wanting to move on a deal without being prepared, means you could miss a beneficial opportunity. Preparation puts you in a much better position to reach your business and investment goals. In business, time is money, and being prepared helps you manage issues within the deal more quickly and efficiently. You want to have solutions and necessary information on hand, so you can easily implement or access them.
An experienced broker can walk you through the steps to get prepared. However, it’s important to start a conversation early before you get to the launch pad. Our role is to help you meet your business goals. So, if you are thinking there might be a deal in your future, reach out now. Don’t wait to text, call, or email. You need to be completely ready for "3, 2, 1 lift off!"
9-16-2022 (NASA Image)
Show It 👨🚀
Tomorrow begins a long weekend. On Monday, we pay tribute to American workers for all their contributions and achievements. There are three ingredients to achieving these successes – skills, knowledge, and attitude.
Typically, we spend Labor Day with our families –– at the State Fair, grilling food outside, or some other event. But as we enjoy the day off, remember how critical purpose, productivity, and contributions are for each of us. Remember the importance of a positive attitude and the essential need to increase skills and knowledge along the way.
On Tuesday, as we get back to work and our kids to go back to school, we unofficially mark the end of summer. It’s time for us to unite as Americans, and as American workers, and show our persistence, grit, and ingenuity. It’s time to show what we’ve got.
9-2-2022
It's Risky 👨🚀
My advice has to do with those tenants that think they’re special. They might just find out they’re not. Hear me out…
Many tenants think that because they have been leasing their space for years, they’re safe. Or, if their landlord is their friend, it’s all good. Some of these relationships mean that the rent agreement may be month-to-month or perceived as easily renewed. Some tenants have no lease at all.
These relationships are risky for the tenant. In this current market, owners are being approached by buyers with record high offers, leading to new buyers taking over. New owners are then looking to increase rents to get a return on the price they paid. They may even want to go in a completely different direction, like move into the property over time or redevelop the site. These situations leave the tenant hanging with no recourse.
Tenants should always talk to a broker before engaging with their landlord. They need to have someone on their team when there’s a shift, and they're no longer that special.
8-19-2022
Why Are Rents Getting Higher? 👨🚀
Construction costs and interest rates continue to go up. These rising costs affect buyers and tenants as well as owners and sellers. In this hot market, more and more multi-tenant properties are being sold at record prices per square foot. These record sales often cause an increase in a property's operating expenses, and many times, its assessed value and taxes. So, between the increase in expenses and taxes, rents are getting higher.
I’ve been receiving calls from tenants who are struggling to understand why their rent continues to increase. In a triple net lease, tenants pay their prorated share of taxes, insurance, and common area maintenance costs (CAM). If taxes and other costs associated with the property go up, tenants will see the total of their prorated share cost more.
Understanding your lease is one good reason to know a broker. They’re a great resource. If you need help understanding your current lease, give me a call. I’m here to help.
7-29-2022
Distant Galaxies & Sharp Focus 👨🚀
This week we saw the release of images from NASA’s James Webb Space Telescope. They’re fascinating! We’ve seen nothing like them, as they are the deepest and sharpest infrared images of the distant universe. Amazing. I find it challenging to take a picture 3’ away with my iPhone at times. 😉
It makes me wonder what the future holds. Will we start selling land on Mars? Another planet? Will my son, Levi, be brokering deals in another galaxy?
Seriously, the phrase “distant galaxies into sharp focus” makes me think about possibilities. And in some ways, it makes me think of Commercial Equities Group. Yes, of course, I automatically think about our tagline, “At CEG, we know space.” But I’m thinking more about endless options. Also, the willingness to imagine something different for yourself and then look from far out and bring the details into sharp focus.
I took the jump to go full time with Commercial Equities Group almost two years ago. I wasn’t sure exactly how it would develop, but I was open to possibilities and absolutely driven to make it happen. As our team grows and more and more deals get done, I see the company more clearly and the results in sharp focus. They’re not quite as visually spectacular, but it’s nonetheless meaningful, and I’m pretty humble you are all part of it!
7-15-2022 (NASA Image)
Fireworks or Duds? 🎆
I was watching a post on YouTube this week called, “Get Rid of Your Friends” by David Goggins, Andy Frisella, Jordan Peterson, Les Brown, and Jocko Willink. It’s about surrounding yourself with people that move you forward and not hold you back. It’s the difference between anchors and propellers. Or, fireworks in the air and the duds on the ground.
Coming off last week’s blog about the CEG team, the post made me think again how fortunate I am with the people I have around me. Our team is loyal to who we are trying to become and that propels us forward. And I'm not just talking about our small CEG team, but also the extended CEG network made up of industry greats. They’ve all pushed me to take advantage of my time and create opportunities for myself and others. I, in turn, do the same. We are driven, and that means we provide the best service, share insight grounded in experience, and get each deal done.
Finally, I’ll leave you with this advice from the post –– only make friends with people that want the best for you. I’m lucky to have friends on my team that do just that.
7-1-2022
Get Smart 🧑🚀
This week has been all about working smarter, not harder. It's been busy –– a full calendar, deals getting done, meetings, and new processes being developed. As the owner of CEG, I don't pretend to know everything. I do know there are always ways to work smarter.
Just like a motorcycle 😉 needs a tune-up, so do the systems and processes in an organization. I have found it beneficial to listen to people new to the industry or young entrepreneurs. They come to me for advice/mentorship, but I usually walk away humbled. I find I've learned a lot from them. One suggestion to do things differently – a new technology, approach, or skill –– can make the whole organization run more smoothly. This week several of my conversations have changed the way we do things for the better. And, that means more deals done and more smooth rides.
6-17-2022
Easy Access 🧑🚀
The majority of calls I get are from mobile numbers, especially since COVID hit. I have a stack of my traditional business cards that I rarely use. Although my number travels, it's not from people sharing a small piece of cardstock. Those mainly end up in the trash.
We use our smartphones so much, from ordering food and watching stocks to listening to podcasts and checking emails or sending texts. They are a vital tool to get deals done. They are also the perfect way to keep track of our network and refer the people we know.
I had a conversation this week with some guys new to the business. My advice was if anyone contacts you with business questions or potential leads, most likely they are calling from a cell. Immediately text them a vCard to follow up, and if they inquire about a property, attach a digital brochure or link. Virtual cards are an easy and organized way for these potential clients to store and quickly access your contact information. That also means, they will be more likely to use and share it when another opportunity comes up. It keeps your name relevant and your phone number spreading, and that's essential for success.
6-3-2022
Question 🧑🚀
I mentioned The SPEED of Trust: The One Thing That Changes Everything by Stephen M. R. Covey, two weeks ago in my short. I’m not done talking or thinking about it.
He asked the question, “Have you been in the business for 15 years or one year 15 times?” It’s the difference between investing in yourself to stay current and relevant or doing the same thing over and over. I’ve been thinking about his question and the impact of intentionally adding value vs. just coasting on your business.
As a person who likes adventures, I approach my business the same way as life. I don’t want to be stagnate and do the same thing over and over again. I want to continually challenge myself. So, I read books, listen to podcasts, try different experiences (like writing a blog), and most of all, get out there and meet new people.
Sometimes growth comes from meeting people just starting in the business. My experience and their new perspective end up being a win-win. It benefits the industry when the new ask for help and the more experienced are open-minded about another way of doing things. The mentor/mentee relationship can be energizing for both careers. So, I wonder, how do you push yourself forward?
5-20-2022
It Changes Everything 🧑🚀
I’ve been thinking about trust––both as an economic driver and how it affects relationships. A while ago, I read the book The SPEED of Trust: The One Thing That Changes Everything by Stephen M. R. Covey. If you haven’t read or listened to it, I highly recommend it.
If you get good at trust, everything else gets better. Innovation, collaboration, and partnerships flourish when there is high trust. High trust is a dividend, and low trust is a tax. In the CRE business, trust is critical. Tenants, owners, and investors need to trust brokers, and brokers need to trust them.
Credibility is the base in which to build trust. It’s about being honest, walking the talk, and doing the right thing when there is a cost. The successful brokers and business partners I know enjoy that dividend, and they stake their reputation on it every day.
5-6-2022
What's the Price? 🧑🚀
I've been thinking a lot this week about pricing. I have a new 5,300 SF industrial listing in the Minneapolis-Bloomington area. It used to be that there were many small to mid-sized industrial buildings in the metro. Not so anymore, making them are harder and harder to find. Many of these properties were bought up and then redeveloped or repositioned into something bigger.
So, how do you put a price on an existing building whose size and type won't be built in Minneapolis again? What's the value for something that's disappearing but still in very high demand? The market's moving fast, and pricing always depends on supply and demand.
That's my week. Hope yours went well.
4-22-2022
Shifting Gears 🚘😎
As a broker, I spend a lot of time in my car. I find it's a great place for me to think and reflect. One of the things I thought about this week was my Friday blog. I started them back in October 2021 to share my experience as well as opportunities, perspectives, and thoughts about the CRE profession.
After seven months, I've decided I need to downshift a gear. My "official" blog will come out every other Friday instead of weekly. On the alternate Fridays, I'll email shorter career and industry tips and advice as well as answers common questions. One of my favorite things about Blog Friday has been reading responses from those who have reached out. We'll keep that communication going, just with fewer words to read. 🙃
4-15-2022