How to do a deal in Today’s market?

April 23rd, 2018

We’ve been hearing it for over a year now… the vacancy rate for industrial property in LA County is under 1%. So with such limited inventory, the question is, how are deals getting done?

Ironically, as technology plays a larger and more integral role in following market activity, and as tech companies are going to war with each other over online search platforms, we are finding that the age-old, time-tested ways of communicating with clients and brokers is still the best way to stay active in this kind of suffocating market.

The process of working hard, still pays off.

I know. I know. It is seemingly so easy to perform an online search to try to find an available industrial space. Yet, only after diving in to the rabbit hole of online information do you actually realize that the information you are finding is sadly one step behind, or one week too old. The fact of the matter is, one week in this type of frothy market, is an eternity for a well located, fairly priced building. So again, the question comes back to how do we do a deal in today’s market?

Well, as recent activity has shown us, many transactions are happening before a building ever even makes it to market. You may come across a brochure online, but the likelihood of it actually still being available is slim. A good broker knows that true value lies in the value of information. The value that the broker is able to ascertain from his contacts and relationships… not the surface information found online, is what truly makes him valuable in today’s market. Picking up the phone to call on companies, and even walking the streets going door to door, is the only reliable way to gather information.

To do a deal in today’s market, you need to be a step ahead of the online cloud of misinformation.

Mike Ouellette