Insider Knowledge: The State of Retail & Office Market in Atlanta From a Tenant Rep Perspective!

On This Episode of Peak Market Watch...

We are very excited to have James Kynes Jr. as a guest speaker! CEO of Peak Financing Anton Mattli, together with this week’s co-host Abel Pacheco, will dive into James’ insight into the tenant and landlord relationship during COVID-19. James will give us insider knowledge on the state of the retail & office market in Atlanta from a tenant rep’s perspective!

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Show Host

Guest Speaker

Co-Host

Anton Mattli

  • anton@peakfinancing.com
  • (972) 725-7878

James Kynes Jr.

  • james.kynes@rushmanmoorereg.com
  • http://www.rushmanmoorereg.com/

Abel Pacheco

  • abel@peakfinancing.com
  • (210) 548-5158

VIDEO TRANSCRIPTION

00:00
real estate and related services who
00:01
have a close pulse on the current market
00:04
the environment
00:06
my name is anton madley co-founder and
00:08
ceo of peak
00:09
financing and my co-host today is abel
00:12
pacheco one of my fellow debt
00:14
advisors with peak financing we are
00:17
honored
00:17
to welcome james keynes who is a broker
00:20
with rushmoor real estate group
00:22
based in atlanta georgia and the rushman
00:26
moore real estate group focuses on
00:28
retail offices and industrial properties
00:32
welcome james it’s a pleasure to have
00:34
you with us today
00:36
why don’t you introduce yourself thank
00:38
you i appreciate the opportunity to join
00:40
you all for a great conversation on
00:42
commercial real estate and just kind of
00:44
where the market you know is and where
00:45
it’s you know where we see it
00:46
going here in the near future based on
00:49
all you know circumstances that we’re
00:50
dealing with um
00:51
you know to your audience i’m james b
00:54
kinds junior
00:55
uh you know qualifying broker for
00:57
rushmen moore real estate group where we
00:58
focus on
00:59
tenant representation and business
01:01
brokerage uh our motto is we like to
01:03
we like to meet our clients where they
01:06
are in their process meaning you can be
01:07
a complete startup and you can already
01:09
have a
01:10
existing business needing to expand or
01:12
contract and we are
01:13
able to help you site select we’re able
01:15
to do lease negotiations we’re able to
01:17
uh
01:18
do market research as well as provide
01:20
you uh with just
01:22
inside information as far as like what’s
01:23
some of the best locations
01:25
for what your particular industry a
01:28
brand
01:28
is calling to do so uh i’m excited to be
01:30
here and looking forward to having a
01:32
great conversation with you guys today
01:33
so thanks for having me yeah
01:34
thanks for being with us so
01:38
as you can imagine everyone has kobe 19
01:41
on their minds
01:42
right yeah and i think it’s particularly
01:45
for us it’s particularly interesting to
01:47
hear
01:48
uh in a market like atlanta uh how
01:52
how the landscape has changed for
01:55
for uh for your clients who are
01:58
tenants that are looking for retail
02:01
space
02:02
maybe industrial space office space
02:05
uh pre-cloud 19 how competitive was it
02:08
how easy was it to negotiate uh
02:12
the leases of 10 improvements that the
02:16
landlords were willing to pay
02:18
and how does that compare now since koi
02:20
19 heads
02:22
so i guess we could start with previous
02:26
like
02:26
so i think 2019 for us because our firm
02:29
is a uh
02:30
it’s a it’s an emerging firm it’s a
02:32
young firm so uh
02:33
you know every year we’re expecting
02:40
increase until we you know profitability
02:43
and our growth but uh
02:44
but you know last year was i was on our
02:46
best years that we actually um
02:48
you know had as a company since we
02:50
started up um
02:51
we we had lease deals that we were
02:53
completing we had um
02:55
business deals that we were actually
02:56
completing on last year and um
02:58
and and it was an exciting thing and for
03:01
myself as
03:02
as i’m growing the company and growing
03:03
the brand it was something that i was
03:05
you know i’m excited about the momentum
03:07
that was coming into 2020 um based on
03:10
how we truly finished out our 20 uh 2019
03:13
moving forward uh the pipeline was uh
03:16
you know
03:17
still actually you know relatively good
03:19
to be honest with you um we still have
03:20
been
03:21
active um but you know of course
03:23
obviously beginning of
03:24
2020 the story began to kind of change
03:28
we had clients that you know i had
03:29
clients for example who had just bought
03:31
a business last
03:32
year um and it was a child care in um
03:34
business to be uh more specific
03:36
um you know right around the time when
03:38
you know covet really begin to hit you
03:40
know georgia shut down
03:41
for i think we shut down for almost two
03:43
months um when we had just almost
03:44
complete shut down
03:46
everything closed um and for her for
03:49
example like the
03:50
the infancy of the transition of
03:52
ownership for her and her business um
03:55
and her relatively being almost a new
03:57
entrepreneur going into this venture
03:59
where she actually just acquired you
04:00
know
04:01
a million plus plus um business you know
04:04
it was
04:04
nervous you know you know luckily um i
04:06
think the difference with
04:08
the market like um as far as the support
04:11
systems in the market is concerned um
04:14
back when the market crashed in like the
04:15
2009 2010
04:17
time frame versus um now
04:21
that correction in the market in 2008
04:23
2009 2010 was more
04:25
i would say man made in a sense on how
04:28
just the deals were just ballooning
04:30
you know the market tank because of
04:32
people were doing scrupulous things at
04:34
the time um
04:35
whereas in the covet market you know
04:37
it’s kind of like you know
04:38
it’s something that’s beyond all of our
04:40
control um and
04:42
we were beginning to see like you know
04:44
companies closing you know people losing
04:46
jobs uh we even saw like the government
04:48
started giving out you know stimulus and
04:50
you know they
04:51
implemented ppp program things of that
04:53
nature that was able to uh
04:55
help some people stay afloat my client
04:57
who i was just speaking about
04:59
uh it helped her tremendously um you
05:02
know i had a couple other clients that
05:04
you know they were in licensing
05:06
processes right when the city shut down
05:08
and um
05:09
it really affected them completing you
05:11
know the process for them to open up and
05:12
so we’ve had to kind of relatively
05:14
respramble and find and you know looking
05:17
for finding new locations for those
05:18
clients uh
05:19
but the uh the bonus part of and we
05:22
talked about the landlords and you know
05:24
how they responded to the the crisis
05:28
i think the the beautiful thing about it
05:30
you know
05:31
is that everybody knows that the
05:33
situation was out of
05:34
everyone’s control and so no one was
05:36
like trying to take full
05:38
advantage of anyone um in the situation
05:40
uh
05:41
so my we had landlords that you know
05:43
gave us abatements on rent
05:45
uh we were able to go in and get you
05:46
know some some some terms you know move
05:48
to the back side of leases and things of
05:50
that nature uh we even had one
05:53
lord who just you know basically let our
05:55
client out of her
05:56
um lease um because it was not going to
05:59
be
06:00
feasible for her at the time
06:03
as far as guidelines now that um have
06:06
inundated into the marketplace
06:08
and and that it was not you know so they
06:10
were very you know
06:11
amenable with that situation and
06:13
allowing her to um exit out at least
06:15
with the small
06:16
smaller exit feed and you know what was
06:18
you know going to be called for but uh
06:20
so so and i had other clients that you
06:23
know that
06:24
did not have spaces but they just
06:26
decided to wait
06:28
until they figure out you know what you
06:30
know the market is going to do
06:32
based on like the kids going back to
06:34
school um the vaccine coming out things
06:36
of that nature so uh
06:37
so i kind of experienced the gambit of
06:39
all you know
06:40
client experiences i don’t say all of
06:42
them you know there’s probably tons of
06:44
more um
06:45
clients out there and experiences that
06:47
you know that i didn’t have but
06:48
you know just talking to some of my
06:50
other uh brokers and other other
06:52
colleagues in the industry um
06:54
you know one of the things we witnessed
06:55
here in atlanta uh we witnessed one of
06:57
the largest um
06:59
office transactions um in the country
07:01
through the covet pandemic by another
07:03
uh a firm here in the city small
07:05
boutique company um
07:07
i don’t call them small i think they’re
07:08
doing quite well but uh they closed the
07:11
deal with uh
07:12
with microsoft um over 500 000 square
07:14
feet um
07:15
over um in atlanta violent atlantic
07:17
station and that was a uh
07:19
that was a massive deal um you know
07:21
obviously didn’t happen overnight but uh
07:23
just the fact that it it completed and
07:25
closed during
07:26
the pandemic you know it really gave the
07:28
market um
07:30
a boost of energy um a boost of hope
07:33
that you know that eventually like you
07:35
know we’ve been hearing all the
07:36
conversation about
07:38
is offices it’s going to open back up
07:40
and what are they going to look
07:41
like what’s retail going to look like
07:42
you know and you know from what i’m
07:44
understanding from
07:45
all the experts in our industry that you
07:47
know i’m able to you know reach out to
07:49
and
07:50
and hear from uh they think that
07:52
everything is gonna rebound just fine
07:54
um as soon as you know we can kind of
07:57
get through the curve of the hump
07:58
and the like you say the code on
08:00
everybody’s mind all the time we can get
08:02
we can get somewhere we can have we can
08:05
get it halfway off of our mind i think
08:06
we’re going to be okay but uh
08:08
it’s it’s standing strong right now so
08:11
far as the forefront of what’s kind of
08:13
driving certain decisions um from
08:15
certain individuals and it’s all about
08:17
you know individuals risk risk tolerance
08:19
um like we’ve we’ve opened up back in
08:21
the state of georgia here and uh
08:23
so i’m seeing like people at you know
08:26
venues like
08:28
almost like nothing going on like me and
08:31
anton
08:31
me and anthony were talking about uh and
08:33
then i forgot to say hi i’m abel pacheco
08:35
nice to see everyone as well
08:37
but me and anton were talking about the
08:38
say thing like literally
08:40
before before you jumped on some some
08:43
people and some families are
08:44
you know you’re getting out there and
08:46
some others are massed up and tied in
08:48
whichever
08:49
whichever you know area you’re in for
08:51
the pandemic and whatever choice you
08:53
make right
08:55
that there’s no one way to say oh this
08:56
is the right way this is right
08:58
one family in one business or one
09:01
industry is working and
09:02
and another is is doing something
09:04
completely different yeah
09:05
so i i agree james hey and and uh sorry
09:08
to interrupt you too but
09:10
i i heard a number of things that were
09:11
really good so i’m just going to kind of
09:13
come back to you
09:14
so you said your clients uh were coming
09:16
to you for
09:17
help and you’re providing the best
09:18
advice or best guidance you can
09:20
you had some clients that were just in a
09:22
tough situation
09:24
with rents uh you know needed a push
09:26
lease or
09:27
whatever the situation was you were
09:29
helping them through tough times
09:31
then you had other clients that weren’t
09:32
in a lease that were trying to figure
09:34
out well should i wait
09:35
or push forward and so some of those
09:37
were waiting
09:38
and then amidst that in atlanta you had
09:40
one of the biggest deals microsoft
09:42
you know uh you know transaction closing
09:45
which gave everyone a boost of
09:46
confidence hey this is
09:47
we’re still on the market’s to rebound
09:49
it’s not the end of
09:50
the world so to speak it is just it’s
09:54
another tough cycle it’s another tough
09:55
wave that we’re all working through
09:56
right
09:57
uh so kind of hurt a number of things
10:00
what do you what do you think the you
10:02
know the majority of your clients that
10:04
are coming to you right now
10:06
what what themes or trends are you
10:08
seeing for
10:09
like tomorrow you know for the for the
10:11
future how how have you seen kind of
10:13
people start to transition today and
10:15
where do you think they’re headed in at
10:17
least in your market because we love
10:18
that
10:19
that expertise that you have there
10:20
locally awesome so
10:22
so one of the things that uh i’ve been
10:25
experiencing
10:26
and and it follows well within our niche
10:28
survival services as tenant
10:30
brokers as well as business brokers and
10:32
being able to meet those
10:33
you know client prospects in the middle
10:36
based on
10:37
you know what they’re expecting and what
10:38
they’re seeking to do um i think
10:40
for us it provides another level another
10:42
level of flexibility
10:44
of offerings um when we’re consulting
10:46
someone based on what it is that any
10:48
strategy would be so to say that like
10:50
um we might have like i had i had a
10:52
client um for example
10:54
um actually looking to open uh
10:57
open the store um they were gonna do it
10:59
as a startup um
11:01
and so i’m kind of like looking at the
11:03
market looking at the place looking at
11:04
the cost of what it would cost them to
11:05
actually start this business up and so i
11:07
just kind of made the suggestion to them
11:08
like hey
11:09
i think you you know let’s look at the
11:11
option of actually finding something
11:13
that’s already existing
11:15
that has cash flow that’s for sale and
11:17
let’s see if we can make that
11:18
acquisition in that direction so uh
11:22
they were you know initially wasn’t
11:24
wasn’t aware
11:25
that you know that that may be a unique
11:28
option for them
11:29
um because that initially they were just
11:31
like hey we got our idea we got our
11:33
concept we know how we want our um store
11:35
to operate we know
11:36
what we want to look like how we want to
11:38
flow um so they were kind of locked in
11:41
on just finding space
11:42
finding the space uh but being able to
11:44
provide them with some
11:46
options um that was able that open up
11:49
like i guess their mind to
11:51
this may be a better option for us um
11:54
and for me i’m seeing as far as
11:56
with business sales um with the growth
11:59
of the um the business sales
12:00
with some you know covet is played like
12:03
it’s affecting everybody in so many
12:04
different ways it’s just
12:06
people that just want to try to retire
12:10
you know
12:10
so they just putting them on the market
12:12
what they want to sell the businesses so
12:13
you so you have
12:14
new businesses coming onto the market um
12:16
that people
12:17
you know ordinarily will probably going
12:20
to retire selling about three five years
12:21
from now just kind of looking at ahead
12:26
let me just i’m ready i’m ready to make
12:28
a transition you’re dealing with the
12:29
with the spaces when you’re dealing with
12:31
startups that’s looking for office and
12:32
retail things that nature like activity
12:34
is um
12:35
it’s still there relatively um it’s just
12:38
a matter of people now having to figure
12:40
out
12:41
how they’re going to adjust their
12:42
business model to accommodate
12:45
for um you know you’re gonna have to
12:47
spend a little bit more money on plastic
12:49
um
12:50
plastic sheets now to put up in between
12:52
certain clients you have to spend more
12:53
money
12:54
on hand sanitizer you have to spend more
12:57
uh
12:57
money on possibly using plastic if
12:59
you’re a restaurant you may have to go
13:00
to plastic fork system
13:02
um or paper plate system something that
13:04
you know
13:05
almost have to ease the mind of your
13:07
consumer that you are ready to um
13:09
accommodate the situation that’s going
13:11
on so i’ve been saying a lot
13:15
shifting in as far as that’s concerned
13:17
you know if you want to get into like
13:18
the industry that’s been here
13:19
very very hard um through covert you’re
13:22
talking about you know
13:23
the hotel industry has been like you
13:25
know completely decimated and not just
13:27
necessarily by
13:28
you know the attendance of people
13:30
staying but a lot of hotels in atlanta
13:32
host conferences like this is a
13:34
this is a major convention set a major
13:36
major conference city so uh
13:37
you know a lot of revenue was lost just
13:39
because people had the council like uh
13:41
cancel their events they had to cancel
13:43
these large conferences
13:45
um you know zoom is doing well but some
13:47
of these physical locations
13:49
are not uh they you know they’re
13:50
struggling because those were ancillary
13:52
pieces of their income
13:54
that really made up um large questions
13:56
of their line i item so you know not
13:58
only are you
13:59
you have people that’s coming to you to
14:01
the hotel to actually
14:03
you know for the conferences but the old
14:04
saying people are booking like rooms
14:06
they’re
14:07
shopping they’re eating like you know
14:09
it’s a complete ecosystem
14:11
a restaurant industry was another
14:12
industry that you know had to
14:14
deal with a shift um in how they
14:18
survived the ones that shifted well or
14:20
surviving the ones that
14:22
did not have the business models to
14:23
shift are not surviving
14:25
um and that business model went from you
14:27
know dining restaurant to you know pick
14:30
up take out to
14:31
home delivery now all of a sudden so uh
14:34
so
14:34
you know with every shift you have like
14:36
you’re going someone is going to take a
14:38
decrease where someone else is going to
14:40
increase so
14:41
all you your uber drivers your uber each
14:44
drivers and all those people they they
14:46
probably saw an increase of income
14:47
because they had more orders going out
14:49
the people that were not able to come
14:51
and pick those orders up so uh
14:53
you know those uh those are you know
14:54
some slight shifts you know so you got
14:56
hotels you got restaurants um
14:58
there’s another industry that i think
15:00
was uh that’s that’s been hit
15:01
very hard you know you know industry
15:03
such like you know
15:04
personal grooming shops um massage
15:06
therapists people where people are
15:08
coming and they’re around
15:09
like people like i mean when we opened
15:11
the state up
15:12
like and you know we opened our state
15:15
back up in two years
15:16
so certain industries were able to open
15:18
up before
15:20
other industries were able to open up so
15:21
uh so you had like you know
15:23
for us i would our system they opened up
15:26
barbershop salons and uh and and
15:28
small restaurants first and so people
15:31
went in frenzy about
15:32
going into like uh you know like the
15:34
purpose of like going to a barber shop
15:36
is
15:36
that is that a is that a necessity like
15:39
is that a is that
15:40
that’s something that’s necessary and it
15:42
started getting it’s like people
15:44
like making judgment on other people’s
15:46
lives as far as what was important to
15:48
them and i think that was one of the
15:50
psychological effects that this pandemic
15:52
is having like if somebody
15:53
if if a good hot shave or haircut makes
15:56
somebody feel better and they’ve been
15:58
stuck at home uh you know not able to
16:00
leave you know
16:01
you know dealing with bouts of you know
16:03
probably you know aspects of you know
16:05
self-doubt depression sort of way and
16:07
that makes them feel
16:08
better then that’s that’s essential to
16:10
that person and we have to uh
16:12
go into this pandemic like you said
16:14
earlier able like you know some some of
16:16
this stuff is not a right or wrong
16:17
approach it’s about just uh
16:19
uh how you were able to handle and deal
16:21
with certain approaches
16:22
those industries um you know saw a major
16:25
hit and um
16:26
and are having to now deal with how
16:28
they’re going to adjust moving into 2021
16:31
um because you know i mean 2020 has just
16:34
been like
16:35
so much has been inundated into the
16:37
climate
16:38
that is like really affecting how people
16:40
feel
16:41
um and how they’re flowing
16:44
this is really good thanks james uh it
16:46
kind of helps me because
16:47
the show is called market watch and we
16:50
are trying to figure out what’s going on
16:51
in markets and
16:52
you’re helping you know uh helping
16:54
others understand because
16:56
like you said you had some people that
16:57
wanted to you know are looking for us
17:00
a space to to uh to go and
17:04
and make their own startup business when
17:05
they didn’t realize oh i could buy a
17:07
cash flowing
17:08
asset a cash flowing business that’s
17:10
already operating and invest there so
17:12
you’re helping them advise that
17:13
and then some of the owners that may
17:15
have not been sellers they started
17:17
listing their businesses so different
17:18
kinds of transactions
17:20
and then i also heard um you know in
17:23
general that
17:24
what whatever the consumers were doing
17:26
you know money starts
17:27
money’s still flowing in certain areas
17:30
or aspects
17:31
maybe not the same velocity that we had
17:33
of money prior
17:34
but you know it’s it’s trading different
17:36
hands like the ubereats guys are
17:37
probably doing really well
17:39
in the in the the businesses like
17:41
restaurants that have learned to pivot
17:43
uh to serve that new market they’re
17:45
doing well also so that’s that’s great
17:47
thanks thanks for that insight
17:48
no problem the other industry i was
17:51
going to say real quick too
17:52
um i’m sorry was the co-working
17:55
uh industry uh yeah and co-working
17:59
you know was a was a office trend that
18:02
you began to see actually it was you
18:04
know the concepts of some of the
18:06
co-working you began to see trickle in
18:08
like actual companies you know companies
18:10
were actually
18:11
building and constructing their offices
18:13
you know similar to how was a
18:15
co-working space almost we were invited
18:18
more collaborative
18:19
more um cohesive like you know ingenuity
18:21
with the creative individuals within
18:23
office so
18:24
you’re seeing like co-working spaces who
18:26
you know
18:27
eventually you know at one point was
18:29
selling like long-term memberships um
18:31
with monthly fees are now adjusting
18:34
and now going to more day rates um
18:37
because people now want to
18:39
come out of the house you know for one
18:41
day maybe go to a co-worker just to get
18:42
out of the house and work freely
18:44
sometimes
18:44
in a safe in the safe environment so you
18:47
saw that shift
18:48
in co-working so that’s one of the
18:50
industries that i kind of got my eye on
18:52
for the most part because i like the
18:54
concept of co-working
18:55
um i like some of the cultures that it’s
18:58
been able to create
18:59
so i’m very interested to see how those
19:01
how that industry is going to adjust i
19:03
think it’s going to do well um
19:04
especially uh with some of the new
19:06
trends that’s coming into the play
19:08
with some of your more club orientated
19:10
co-working spaces um so it’s more
19:12
membership driven
19:14
um and so you got more of a
19:15
quote-unquote private experience um you
19:17
can probably do a little more
19:19
uh screening a little more uh you know i
19:21
guess filling in with you know
19:23
who you have coming into the building
19:25
versus just a free-fall kind of
19:26
co-working space so um those
19:27
those are those issues i think i’m
19:29
looking forward to see how these chips
19:30
and just coming into 2021
19:33
yeah very good
19:37
getting back to to you mentioning that
19:40
uh
19:41
uh rather than by leasing a new
19:44
uh empty space and buying an existing
19:46
business
19:47
uh that’s always a very good strategy
19:50
right
19:51
at various fronts it’s reduces the risk
19:54
for
19:54
for your tenants right because now
19:56
they’re not just tenants as a startup
19:58
but they have to exist in cash flow
20:01
but it also you rescue essentially
20:04
someone who
20:05
may have enough right that they may be
20:07
struggling
20:08
uh you you may call it taking advantage
20:11
of someone but that’s not really the
20:12
case
20:13
right if they if they need a solution
20:16
yes you may get a better deal but at
20:18
least you are helping someone
20:21
and thirdly also helping the landlord
20:24
right so rather than that business
20:25
getting out of business and the landlord
20:28
sitting in a on an empty space now you
20:30
have
20:32
someone coming in and taking over that
20:34
space right away
20:36
so i think the win win for for all three
20:38
of them right the seller the buyer and
20:40
the landlord so that’s uh
20:42
that’s only a great strategy
20:46
but though still wondering for for
20:48
someone who wants to
20:49
to get into new empty space
20:52
what what have you seen in terms of
20:55
concessions
20:56
uh and rent decreases
21:00
landlords have been willing to offer
21:02
over the last
21:03
few months have you seen that they are
21:05
willing to do that
21:07
or do you see more to say well look
21:10
this thing will blow over within a
21:12
couple of months
21:13
so we are sitting tight and we are not
21:16
really willing to
21:17
lower our rents and we are not willing
21:19
to give concessions
21:20
or do you see that they are willing to
21:22
lower rents and provide these
21:24
concessions and tenant improvements
21:27
and so on so so that’s a good question
21:30
um
21:31
so so the the actual
21:35
i think that really plays a lot into
21:38
like
21:39
location um some some areas are more
21:43
emerging areas
21:44
they have a lot of development still
21:45
going on and so like some of those
21:48
landlords some of those developers in
21:49
that area they’re going to be a little
21:51
too
21:52
more flexible with the terms that
21:54
they’re able to do with someone coming
21:56
into a new space because they are
21:58
able to relatively absorb some of those
22:00
costs and some things that they’re
22:01
already doing as far as improving the
22:02
spaces um
22:03
now if you go into some more established
22:06
and this is what i’ve seen like some
22:07
more established
22:09
communities where uh the occupancy
22:12
is not as frequent as it may be in
22:15
something that’s new and emerging where
22:16
they’re building the space around or
22:18
they’re adapting reusing
22:19
space that’s already there uh those
22:22
landlords in this market
22:24
kind of you know based on your business
22:26
model
22:27
um and it’s all relatively case by case
22:30
um and it goes back to what i was saying
22:31
earlier like how well are you presenting
22:32
your case to go into the location
22:34
it’s gonna you know it it it gives them
22:37
a sense of the risk tolerance that
22:39
they’re taking by bringing you into the
22:41
space um
22:42
so it’s like a if you got a store that
22:44
they that they love your concept and
22:46
they want you in
22:47
it’s going to be some things they’re
22:48
going to do for you they may not do with
22:49
a store
22:50
or someone that they not trusting that
22:52
they’re going to operate long
22:54
long term um don’t mean they won’t do
22:56
the deal um but they
22:58
definitely like you know and one thing i
23:00
try to help my tenants understand is
23:02
that
23:02
you know most of these landlords are not
23:04
trying to you know
23:06
quote unquote guide you for your money
23:07
because they’re gonna lose money if you
23:09
don’t succeed
23:10
um and so it’s in everybody’s best
23:12
interest that you suspect that that you
23:14
are successful as a business because
23:16
they’re not trying to bring you in and
23:17
turn you over uh 18 months since
23:19
after you’ve been here because you know
23:21
your business plan went solid um you
23:22
know for the most part
23:23
some of them are gonna let you come in
23:25
if the business plan not solid because
23:27
they see that just
23:28
it’s a red flag for disaster um you know
23:30
it’s all types of
23:32
you know obviously landlords in the
23:33
market you know you know some that don’t
23:35
even you know they don’t advertise that
23:36
their um
23:38
spaces are for lease um you have the
23:39
ones who list their space with
23:41
uh with the landlord rep uh and you know
23:44
i kind of like dealing with that
23:45
situation because i know i’m dealing i’m
23:47
gonna be dealing with another
23:48
professional on the other side um versus
23:50
uh
23:51
i got a you know i’m dealing with a
23:52
business owner that’s trying to deal
23:53
with the
23:54
uh a building owner and you know the
23:56
building owner
23:57
you know hasn’t you know put in like
23:59
some of the things that need you know
24:01
to protect the tenant um and you know
24:04
he’s looking out for his own interest
24:05
and the lieutenant thinks that they’re
24:06
going to get a better deal
24:08
by dealing with the owner himself of
24:11
themselves versus
24:12
going in with some type of
24:13
representation i’ll leave that i’ll
24:15
leave that party to the party
24:16
you know i let them part i let them have
24:18
that party and
24:20
and move on up to i get a call back hey
24:22
i signed something
24:23
it didn’t work out like i thought it was
24:25
gonna be and i’m like okay well
24:27
we do this every day um you tried to do
24:30
it for one time and you didn’t
24:31
work out for you you might want to you
24:34
know lean with somebody who has some
24:35
market expertise to help you
24:37
position yourself with some of these
24:38
landlords and developers so that uh
24:40
a landlord rep so that you get the best
24:42
deal and make sure your interest is
24:43
protected at the end of the day
24:45
an excellent point i would say that’s
24:47
really the same thing for us
24:49
white able right we are commercial debt
24:52
brokers
24:53
and we have some clients or new clients
24:57
that
24:57
initially attempted to go directly with
25:00
lenders they signed loan applications
25:02
and then they come to us and ask for
25:04
help because
25:06
whatever terms that they accepted were
25:09
not really
25:10
in line with of what they should have
25:12
accepted right and what you’re doing is
25:14
essentially the same thing you protect
25:17
the tenant uh so that they get the right
25:20
deal with with the landlord and it’s
25:24
interesting to hear that uh it’s so much
25:27
easier when you
25:28
have the the uh your partner also
25:32
the landlord being represented by a
25:34
professional right uh
25:36
who knows how to negotiate rather than
25:38
the landlord attempting to do
25:40
these negotiations uh maybe once or
25:43
twice per year with a tenant but they
25:45
just do not have the knowledge and
25:46
expertise how to
25:48
properly structure these these uh
25:52
leases in the first place well you know
25:55
they smarter they’re smarter than us now
25:57
anton
25:58
[Laughter]
26:01
they know they know we don’t know so we
26:03
just got to keep working
26:05
yes that’s right yeah
26:08
absolutely well it’s funny uh on the
26:11
last topic on
26:12
you know the same exact uh topic uh
26:16
you have you know a number of
26:17
transactions once you’ve
26:19
once you’re uh like an investor right
26:21
i’ve i’ve done
26:22
i don’t know how many deals now you know
26:24
five six seven
26:25
as an active partner i’m investing in
26:28
commercial real estate
26:29
and i’m an owner right and i kind of
26:32
feel like well i’ve got some experience
26:34
but there’s a big difference between i
26:36
have my multiple cycles even if you’ve
26:38
done 10 or 15 or 20 deals
26:40
versus someone who does you know who’s
26:42
done you know
26:43
billions of dollars of transactions over
26:46
the course of
26:47
however many years and and seen the you
26:50
know seen it now differently
26:52
um on the on the debt sizing you know or
26:54
the the financing terms you know
26:56
specifically as
26:57
we kind of we know this is like you you
26:59
talk to five different banks on one
27:01
transaction or seven
27:02
seven different lenders on one deal and
27:05
i think that’s the volume that sometimes
27:07
people miss is like yeah i’ve done it
27:09
once
27:09
and i’ve closed you know or five times
27:12
but where an expert may see
27:14
you know five to seven transactions on
27:16
one deal and they can see how different
27:18
parties look at that one deal it’s a
27:20
different take it’s a definitely
27:21
different take
27:22
yeah and you do the same james right on
27:25
on the
27:25
tenant website you negotiate with
27:28
landlords all the time so you just know
27:31
better how to negotiate right so
27:34
that’s and what the general terms are
27:36
that are that are out there
27:38
you also brought up a very good point
27:41
right and we
27:42
a lot of our clients are in the
27:44
multi-family space
27:45
right and they’re obviously
27:48
you have a lot of tenants in the
27:50
building uh
27:51
and the quality of these tenants are are
27:54
absolutely crucial right so that you
27:56
don’t do not have tenant turns that you
27:58
don’t have bad debt
28:00
and what you brought up here is a very
28:03
important point also for
28:04
commercial landlords for officers
28:07
for retail for industrial yes someone
28:10
may
28:11
may be willing to pay you a higher rent
28:15
and they may even put in a larger
28:17
deposit right
28:19
but ultimately that doesn’t help you
28:21
when they are not able to
28:22
to sustain their business over an
28:25
extended period of time
28:26
right so it’s a very important point as
28:30
a landlord
28:31
for for these buildings you i must have
28:34
also
28:35
to have kind of a business and analysis
28:37
element you need to bring to the table
28:39
to understand whether your tenants are
28:41
able to do it right
28:43
obviously if you are just renting to uh
28:47
national credit tenants then it’s easy
28:50
but if it’s what most most landlords
28:54
have to deal with
28:55
are middle market and small businesses
28:58
and there it depends a lot on on their
29:01
assessment whether a business actually
29:03
can make it over an extended period of
29:05
time
29:07
so your role there is only important to
29:10
sell
29:16
so and i agree with that and that’s a
29:18
great point so and one of the things
29:19
that that
29:20
that i’ve found and to help clients in
29:22
that capacity is i have a
29:23
strategic alignment with the company um
29:25
that helps people create
29:28
their business credit um so that they’re
29:31
not
29:31
first off leveraging their social
29:33
security numbers um leveraging
29:34
leveraging their own income they’re able
29:37
to build the credit of the business so
29:39
that they can have
29:40
capital in the business name to help
29:42
operate the business and i think like
29:45
it took a it took a while for me to
29:46
really find that right person to help
29:48
really drive
29:49
that particular point because i think
29:51
that’s just like you know
29:52
that’s very important for entrepreneurs
29:54
like i didn’t i didn’t have it as an
29:55
entrepreneur but i knew i needed like
29:57
to have like additional capital that
30:00
banks may not have lend me like you know
30:02
they might not lend that way um they’ll
30:04
lend to a business and you get bigger
30:06
you know credit limits when you when you
30:08
have established trade lines and credit
30:10
lines with the business as well
30:11
so uh just as an entrepreneur i just
30:13
know that that’s a tool that i think
30:14
like most entrepreneurs would need to
30:16
have
30:16
like in their uh toolbox to execute and
30:20
be able to maintain business like
30:22
payroll um cash flow situations things
30:24
of that nature
30:25
so that you’re not running your business
30:26
at your cash register
30:30
very good point yeah
30:34
so what will you say james uh obviously
30:37
we are still
30:38
in the middle of kobe 19 but uh as you
30:41
mentioned
30:42
overall the uh the opinion by a lot of
30:46
players from from businesses to
30:48
landlords is
30:50
we will get through this and it will
30:53
improve
30:54
and certainly with all the vaccinations
30:56
that are now
30:58
on the horizon it’s only looks that way
31:01
that by the middle of next year we
31:04
hopefully will be will be back to normal
31:08
so do you see that both your
31:12
tenants that do represent them
31:13
businesses as well as landlords that
31:15
they are
31:16
willing to pick up the pace now or
31:19
in early of 2021 or do you to feel that
31:24
they
31:24
are going to wait more until all the
31:27
the majority of the people are
31:29
vaccinated in the middle of next year
31:33
uh so obviously with a great different
31:35
mix of clients that we
31:37
you know that we work with we we i’m
31:40
we’re working i’m gonna be honest with
31:41
you like i’m i’ve i’m getting leads
31:43
every
31:44
every week um in the fight and the
31:46
beautiful blessing about our situation
31:47
is like
31:49
i have clients that’s calling now and
31:51
reaching out to us now
31:52
um that are looking for higher priced
31:54
items um
31:55
like so that’s that’s really like a
31:58
great thing for us and how we’re growing
32:00
um when i got clients that
32:02
you know customers that i’m working with
32:03
that are looking for like businesses
32:05
that are uh
32:06
you know they’re gross and are knitting
32:08
you know in between one to five million
32:10
then
32:10
you know the evaluation of that business
32:11