The Commercial Real Estate Investor Podcast

Key Takeaways:Alec transitioned from residential to commercial real estate, focusing on industrial and flex space development.His first commercial deal was a 54,000 sq ft industrial property in a tertiary market, purchased through creative financing with partners.Raising capital is often the most challenging part of development, more so than the construction process itself.Alec chose New Braunfels, Texas for development due to faster site plan approval times and favorable building regulations.He focuses on building flex space under 12,000 sq ft to avoid expensive sprinkler system requirements.His current project involves four buildings with a total development cost of around $10 million, targeting rental rates of $16-$20 per square foot.Key lessons learned include the importance of:NetworkingUnderstanding market nichesManaging people and relationshipsCreative financingThorough due diligence

Key Takeaways:Economic Uncertainty: There are potential signs of a recession, with five major economic forces potentially suppressing US economic growth through 2025-2026.Commercial Real Estate Outlook: The market is unpredictable, with potential both positive and negative impacts across different asset classes (retail, office, multifamily, industrial).Investment Strategy Advice:Don't make decisions based on fearLook at investments with a long-term perspective (5+ year horizon)Keep cold calling and networkingFocus on buying good assetsBusiness Approach: Treat commercial real estate as a professional business, not a hobby. Use professional services like property managers and brokers.Current Challenges:High construction costsHigh interest ratesPotential economic slowdownReduced immigrationGrowing US federal deficitPractical Tip: For flex space, consider renovating existing properties rather than building from ground up due to current economic conditions.

Key Takeaways:Creative Capital Matters More Than CashYou don't need all the money upfront to invest in commercial real estateFocus on controlling the deal and finding creative financing optionsExplore strategies like seller financing, lines of credit, and investor partnershipsFinancing StrategiesConsider 100% seller financing for commercial propertiesUse lines of credit strategically if investment returns exceed interest ratesPartner with experienced investors to leverage their track recordInvestment GoalsAim for 18-22% internal rate of returnTarget 20% annualized cash-on-cash returnLook for deals with multiple value creation opportunitiesNetworking is CriticalAttend real estate investor eventsBuild relationships with potential partnersDo thorough due diligence on potential investment partnersRisk ManagementPrefer fixed-rate loans over adjustable-rate mortgagesPay cash for land investments when possibleAlways have a clear strategy for debt service and cash flowFocus on Creating ValueLook for opportunities to provide affordable spaces for businessesConsider unique amenities that attract tenants and employeesThink creatively about property development and usage

Key Takeaways:Relationship BuildingMaintain constant communication with property owners (quarterly or at least annually)Reach out with market updates, recent deals, or just to check inProspecting StrategiesLead with specific tenant requirementsTrack potential tenants and market movementsUse AI tools like ChatGPT to analyze property data and narrow down prospectsDeal Flow TechniquesBuild relationships across different market segmentsLeverage tenant representation to create deal opportunitiesConsider co-investing to add more value and understand ownership perspectiveTechnology and AI ToolsUse platforms like Placer.ai for retail market insightsUtilize AI for email drafting, data analysis, and communicationLeverage tools like Read AI or Otter for meeting transcriptions and team managementNetworking and VisibilityPost about your deals on LinkedInEstablish yourself as an expert in a specific real estate verticalStay top of mind by sharing market updates and transaction information

Key Takeaways:Create deals, don't just find themReputation compounds faster than capitalChasing cash flow can keep you poor - focus on equity and value creationControl is more valuable than ownershipOne great relationship can change everythingThe first deal is the hardestScale faster by focusing smaller (inch wide, mile deep)Brokerage is the best entry point for beginnersIf you're the smartest person in the room, you're in the wrong roomBuild your brand now - content is credibilityDevelopment will test every part of youYou're just one property away from changing your life

Key Takeaways:Tailor your pitch to your audience:Institutional investors want rigorous data and professional decksPrivate investors are more relationship-driven and emotionally influencedFocus on key investor motivations:Stability (durability through economic cycles)Passive growth (minimal management headaches)Impact and legacyDownside protection and risk mitigationPitch delivery tips:Be comfortable and authenticDon't read slides word-for-wordUnderstand your subject matter deeplyHave multiple exit strategiesBuild trust before the pitch through consistent communicationPitch structure:Start with upside potentialAddress downside risksHighlight unforeseen benefitsDemonstrate how risks are mitigatedCommunication strategy:Ask investors if they're more numbers-focused or vision-focusedBe prepared to move flexibly through your presentationShow genuine belief in the dealProvide transparent information about potential challenges

Key Takeaways:Contractor Selection Strategy:Always be networking and meeting contractors before you need themNot all contractors are skilled in every type of project (e.g., house builders aren't necessarily restaurant builders)Look for contractors with specific experience in your project typeContractor Engagement Approaches:Design-Bid-Build: Fully design project first, then get contractor bidsDesign-Build: Bring contractor in early to consult during design processEach approach has pros and cons depending on project scale and budgetNetworking Tips:Attend industry events like Urban Land Institute, ICSC, local Real Estate Investor Association meetupsBuild relationships before you need themBe open to unexpected connections and opportunitiesInvestment Insights:Understanding and marketing an asset is crucial to its successThe ability to tell a compelling story about an investment can impact its future sale valueAlways be learning and expanding your professional networkPersonal Updates:Recently spoke at Midwest Real Estate Investors ConferenceOnboarding a new admin assistantExpanding brokerage team due to increasing workload

Key Takeaways:Leverage Your Existing NetworkShare what you do professionallyHave one-on-one conversationsTell stories about successful clientsAsk for specific referralsHyper Local FarmingFocus on a manageable geographical areaWalk and know your target marketAbout 5% of properties may be interested in trading at any timeDoor knocking, cold calling, and direct mail can be effectivePosition Yourself as an Online ExpertUse platforms like LinkedIn, podcasts, blogsShare valuable market insights and dataCreate content that solves problemsTell stories about your deals, highlighting unique solutionsShowcase market trends and statistics

Key Takeaways:Commercial Real Estate Investment Insights:Returns vary based on risk and market conditionsLong-term real estate investing is more stable than short-term speculationLook for risk-adjusted returns, not just raw percentage numbersCurrent Projects:Salt Ranch boutique hotel is near completionStarted construction on a 350-unit self-storage facility in ChattanoogaRestructuring his company with more back-office supportInvestment Advice:Real estate has historically appreciated 3-5% annuallyHard assets like real estate can hedge against inflationBuy when others are afraid, as properties might be "on sale"Market Challenges:Key external variables to watch: tariffs on construction materials and interest ratesLocal market fundamentals are more important than global trendsInvestment Strategies:Diversify across different property typesConduct thorough due diligenceConsider long-term potential of markets and specific propertiesProfessional Development:Learn from experienced developersNetwork and attend industry eventsConsider becoming a broker or property manager for short-term incomeConsider additional costs like health insurance when transitioning

Key Takeaways:The $370K underwriting mistake that changed everything How Marcus scaled from one car wash to a multi-property empire Why strong banking relationships are a growth cheat code The power of treating tenants like partners • How he's setting his kids up to run the family portfolio

Key Takeaways:Commercial Real Estate Misconceptions:Making money is not just about rent exceeding expensesCommercial real estate investing is not 100% passiveBigger numbers shouldn't scare investorsHaving the right sales team can help get better dealsAdvice for Investors:Treat commercial real estate like a businessBuild strong systems to manage propertiesNetwork with brokers and use strategies like mailers to find off-market propertiesDon't leave your W-2 job too quickly, as it helps with loan qualificationPersonal Experience Insights:The speaker recently had to restructure his team, reducing staff by using AI and technologyFirst years in commercial real estate brokerage can be challenging, with low initial earningsIt takes 3-5 years to become a successful commercial real estate brokerLoan and Income Considerations:Banks prefer lending to those with more cashRecommended to have 100% of current W-2 income from real estate before leaving jobConsider additional costs like health insurance when transitioning

Key Takeaways:Embrace AdversityChallenges are constant in commercial real estateView obstacles as opportunities for growthAlways be prepared to solve problemsBuild Your Personal BrandBecome an expert in your specific market or asset classUse social media to provide valuable, authentic contentNetwork within industry associations and communitiesAdd Value ConsistentlyFocus on helping clients beyond just closing dealsProvide strategic insights and genuine supportPlay the long game in relationship buildingMaintain Pipeline and MomentumContinuously prospect and generate new businessSeek early successes to build confidenceBe proactive in finding opportunitiesLeverage Unique BackgroundUse previous industry experience as a competitive advantageFind mentors who can help you translate your skillsCreate a niche by combining your expertise with commercial real estate knowledgeAdapt to Market ChangesStay flexible during economic shiftsView market challenges as potential opportunitiesContinuously learn and refine your approach

Key Takeaways:Tariffs will significantly impact commercial real estate, especially industrial and retail sectors, by increasing construction and material costs.Manufacturing relocation back to the US will take 4-5 years minimum, with full impact potentially taking 10+ years.Businesses are likely to face immediate price increases due to tariffs, potentially causing economic uncertainty and reduced transactions.Coastal cities and port-heavy markets may be hit hardest by import/export disruptions.Opportunities still exist in commercial real estate, particularly in value-add projects involving renovating existing buildings.Landlords should:Communicate openly with tenantsBe flexible with lease termsPrepare for potential vacanciesFocus on long-term strategiesThe current economic environment suggests caution, with an emphasis on making steady, conservative investments rather than seeking big wins.Interest rates may rise to combat inflation caused by tariffs, making current rates attractive for investment.

Key Takeaways:Occupancy dropped from the seller's claimed 93% to as low as 58%, but has now climbed to the high 70s.Partnering with a moving company (Six Demand Movers) provides unique advantages in filling units and getting above-market rates.Major operational challenges included:Transferring property management softwareOnboarding a call centerFixing maintenance issues (gate, HVAC, doors)Tenant retention strategy focuses on:Responsive maintenanceFlexible fee policiesBuilding relationshipsServing long-term, multi-unit clientsFuture plans include:Reaching near 100% occupancyAdding 40-52 new units using shipping containers and movable unitsPotentially expanding to 130-140 total unitsImproving property curb appealKey financial insights:Each unit is worth approximately $17,300Adding units can significantly increase property valueAvoiding marketing expenses creates substantial valueSeasonal considerations: Peak moving/storage season is March to October, with slowest months in January and February.

Key Takeaways:Location Matters: Choose a location that fits your specific investment strategy and asset class.Cash Flow is Critical: Aim for properties that can cover debt service, especially in the current interest rate environment.Environmental Due Diligence: Always conduct a phase one environmental report to identify potential contamination risks.Property Age Considerations: Older properties can have expensive maintenance issues, particularly with plumbing, HVAC, and infrastructure.Zoning Verification: Always double-check zoning with the city, as local tax maps can be inaccurate.Parking and Accessibility: Evaluate parking needs based on the specific market and neighborhood.Surrounding Neighborhood: Assess the condition of nearby properties and potential for future development.Tenant Compatibility: Consider how surrounding businesses and potential tenants align with the property's intended use.Feasibility Study: Do quick initial calculations to determine if a deal is worth pursuing further (e.g., price per square foot, potential rental rates).Investment Strategy: Look for opportunities to potentially double your money in 3-5 years through a combination of cash flow and appreciation.

Key Takeaways:Tyler hosted a successful CRE Accelerator Mastermind event in Birmingham, Alabama, where they covered topics like developing flex space, underwriting, and case studies from members.Tyler is planning the next in-person mastermind event in Nashville, which will focus heavily on underwriting practice and property tours.Tyler is under contract to purchase a 4,000 sq ft building in East Nashville to convert into an event space and YouTube studio for his business.Owner-occupying commercial real estate was highlighted as a good way for business owners to build their real estate portfolio.

Key Takeaways:Unconventional ways to monetize commercial real estate include renting out parking spaces, using excess land for storage containers, implementing digital billboards/signage, and leveraging technology and experiential elements.In the industrial sector, there is a "tale of two cities" scenario, with oversupply in big box warehousing but high demand for smaller manufacturing spaces.Retail faces challenges due to supply constraints and high construction costs, making it difficult for tenants to afford the rents.The office market is poised for a potential bull market, but will require creative destruction and adaptation to changing space needs post-pandemic.Integrating technology, such as VR, digital signage, and IoT, can enhance the value and attractiveness of commercial properties.

Key Takeaways:Being a generalist in commercial real estate is better than being a specialist, as it broadens your investment skills and opportunities.The numbers alone don't make a deal - you need to consider operational capacity, management ability, and local market conditions as well.Real estate doesn't always go up in value, and can experience significant drops in the short-term.Just because you find a good deal doesn't mean the money will automatically come - raising capital is an ongoing process that requires preparation.The 1031 exchange is not always the best option, and it's important to consult your CPA.Single-family rentals are no longer a good investment due to the high risk and low reward.

Key Takeaways:Industrial real estate remains resilient, with low vacancy rates, but older buildings may need upgrades to meet modern standards.The multifamily market is bifurcating, with Class A urban properties seeing more challenges, while Class B and workforce housing have stronger fundamentals in certain areas.The office market has structurally changed, with high vacancy rates, but there are pockets of resilience in medical office, Class A trophy spaces, and suburban mixed-use developments.In retail, grocery-anchored centers and experiential retail are performing well, while malls and big box retail continue to struggle, especially in weaker markets.Potential opportunities exist in distressed office, hospitality with expiring CMBS loans, retail repositioning, and affordable office/multifamily in good secondary markets, but caution is advised to avoid overpaying.

Key Takeaways:Leverage LinkedIn and social media to become a thought leader by creating valuable, client-focused content rather than self-promotional posts.Ensure your social media presence and brand aligns with the type of high-value clients you want to attract.Publish regular, data-driven market reports to differentiate yourself and stay top-of-mind with potential clients.Seek out speaking engagements and other opportunities to position yourself as an industry expert.Develop a system to proactively identify and build relationships with the key players and decision-makers at large industrial, retail, and corporate clients.When given an opportunity to work with a high-profile client, make it your top priority to over-deliver and exceed their expectations.

Key Takeaways:Be very cautious of deals with extremely high cap rates (over 10%), as there are likely underlying issues with the property or tenant.Thoroughly vet the seller and ensure they are the actual owner of the property before proceeding. Verify ownership through title work.Conduct thorough due diligence, including a Phase 1 environmental study, to uncover any potential problems or liabilities.Have a commercial real estate attorney review all lease and purchase documents carefully before moving forward.Work with reputable title and escrow companies, not directly with the seller, to protect yourself from potential scams.Ensure the tenant's financials and business model make sense for the high rent being paid, as it may not be sustainable.

Key Takeaways:Explore alternative financing options like bridge loans, floating rate loans with rate caps, assumable debt, and seller financing to make deals work in the high interest rate environment.Underwrite deals conservatively, stress-testing for debt sensitivity and ensuring NOI durability. Focus on realistic rent growth and expense assumptions.Plan for longer hold periods of 7-10 years, as the 3-5 year flip mentality may not work in the current market.Look for distressed opportunities, especially properties facing debt maturities that are forcing owners to sell or refinance on unfavorable terms.Consider value-add opportunities, especially in newer vintage properties from the 2000s, as they require less capital expenditure compared to older 1960s-1970s properties.Tighten expense management and focus on value-add improvements to boost NOI, as rent growth alone may not be enough.Be conservative in underwriting, build in buffers, and focus on the long-term rather than short-term market fluctuations.

Key Takeaways:When determining the price per square foot to pay for industrial land for development, survey recent comparable sales in the area to see what the market is paying. Take into account the specific zoning as that can impact pricing.As a general rule of thumb, you'll want the land cost to be around 20-25% of your total development costs (including hard and soft costs). This can help guide what price per square foot makes sense.For a 4,000 sq ft commercial space you're looking to lease out, the main marketing strategies suggested are:Hire a commercial real estate broker to list and market the spaceList the space on online marketplaces Put up a prominent, eye-catching "for lease" sign on the propertyWhen raising capital for commercial real estate projects, the key is to start networking and letting your contacts know you're actively looking for investors, rather than waiting until you have a deal.

Key Takeaways:Don't invest with syndicators you don't know personally. It's important to thoroughly vet and understand how a syndicator operates before investing with them.Align incentives with your investment partners. The general partner should have significant skin in the game and be taking on meaningful risk alongside the limited partners.Be very conservative in your underwriting and stress test deals for various scenarios. Don't rely on overly optimistic assumptions.Focus on getting 20%+ annualized cash-on-cash returns. Anything less may not be worth the risk and effort compared to other investment options.Avoid 50/50 partnerships, as they can lead to stalemates and disputes. One partner should have majority control.

Key Takeaways:Underestimating renovation costs and working with inexperienced contractors can lead to major challenges on your first commercial deal. It's important to work with seasoned professionals who can provide accurate cost estimates.Creative financing options like investor partnerships and seller financing can help new investors get started in commercial real estate without having to put up all the capital themselves. However, you need to carefully structure these deals to ensure they are beneficial for your role.Thoroughly reviewing leases, tenant information, and potential capital expenditures is crucial when evaluating commercial properties, as the income and expenses are the key drivers of value.Don't be afraid to take the plunge into commercial real estate, even if you're a beginner. With thorough due diligence and learning from others' mistakes, you can find success, even if your first deal isn't perfect.

Key Takeaways:Budget conservatively for unexpected maintenance costs when buying older commercial properties. Factors like HVAC issues, plumbing problems, and deferred maintenance can lead to significant unplanned expenses.Scaling up in commercial real estate can help minimize maintenance costs per square foot. Larger properties often have economies of scale compared to smaller, lower-cost properties.Prioritize finding quality tenants and building strong relationships with them. Bad tenants can make an investment experience very difficult, so proper tenant screening and management is crucial.Consider hiring a professional property management company rather than self-managing. While it costs more, it can save time and headaches in the long run.Hands-on experience is invaluable in commercial real estate. Finding a partner with expertise can help navigate the initial learning curve.Focus on acquiring quality properties, even if the upfront cost is higher. This can pay off in the long run with fewer maintenance issues.Recognize that commercial real estate investing, while more passive than a full-time job, still requires ongoing work and oversight. Setting up the right team and systems is key to scaling.

Key Takeaways:Thorough due diligence is crucial when analyzing potential deals, especially when reviewing rent rolls, leases, and tenant mixes. The distress in the market is compartmentalized, so understanding the specific risks and opportunities in each asset class and submarket is important.Considering alternative financing methods, such as paying cash, syndications, or using creative structures like lines of credit, can help mitigate downside risk in the current high-interest rate environment.Focusing on consistent cash flow and tenant quality, rather than chasing higher returns, is advisable. Properties with longer weighted average lease terms (WALT) and diversified tenant bases may be more resilient.Avoiding forced deals and being selective and patient is recommended, as the market has not fully adjusted yet, and overpaying should be avoided. Sitting on the sidelines for a period may sometimes be the prudent choice.Staying attuned to broader economic and geopolitical factors, like the potential impact of US-Canada trade policies, is important as they can affect commercial real estate transactions and operations.

Key Takeaways:Tyler and Jacob bought a failing self-storage facility for $1.7 million, with the goal of turning it around through operational improvements.The facility was advertised as 95% occupied, but was actually only 66% occupied when they took over. This was a significant discrepancy.The property had a poor reputation with many negative reviews, so Tyler and Jacob plan to focus on improving customer service and rebuilding trust.They see opportunities to add 30-40 additional storage units, which could increase the property's net operating income by 30-40% within 12-24 months.They plan to be relatively stabilized by the end of the year, and may be able to finish the project in 2-3 years instead of the initial 5-year timeline.Key next steps include conducting a cost segregation study, improving operations, raising prices, and deciding whether to keep the existing business name or start fresh.Overall, the focus is on operational value-add strategies to turn around the failing facility, rather than major capital expenditures.

Key Takeaways:The commercial real estate job market is challenging right now, especially in sectors like development, asset management, and private credit. Tyler discussed how high interest rates, construction costs, and reduced transaction volume are impacting hiring.To break into the commercial real estate industry, networking and building relationships are crucial. Tyler emphasized the importance of connecting with brokers, attorneys, CPAs, and other industry professionals, as many jobs are filled through personal connections.Creative financing can be very helpful when capital is limited. Tyler discussed strategies like seller financing, investor partnerships, and 1031 exchanges as ways to structure deals without needing a large down payment.Underwriting and analyzing deals is a critical skill. Tyler advised aspiring investors to get good at financial modeling and understanding market dynamics, as this makes you more valuable to potential employers or investment partners.Despite challenges in the market, opportunities still exist. Tyler shared examples of his own projects, like acquiring an underperforming self-storage facility and planning to add more units to boost NOI.

Key Takeaways:The commercial real estate job market is challenging, especially in sectors like development. Factors like high interest rates, construction costs, and cautious banks make new development projects difficult.Leasing and asset management roles may be relatively stronger than sales/brokerage, which has seen significant declines in transaction volume.Building relationships, especially with commercial real estate brokers, is crucial when trying to break into the industry. Networking and persistence are key.Obtaining specialized knowledge through courses, certifications, and mentorship can make you a more attractive candidate, but relationships are often more important than just credentials.Creative financing strategies like using investor capital, seller financing, and leveraging existing assets can help overcome the barrier of limited personal capital when getting started in commercial real estate.

Key Takeaways:Hospitality experience is valuable when transitioning to real estate. Andrew's background in running restaurants and managing teams helped him in operating the Swepson Guest House.Focusing on a specific customer type and not trying to be everything to everyone is important. Andrew targeted large groups like corporate retreats and bachelor parties.Providing additional services like trip planning and concierge-style amenities can differentiate a property and lead to repeat bookings.Being flexible with the property's layout and usage (corporate vs. leisure) can maximize revenue.Anticipating and planning for high guest usage, such as having extra furniture and supplies on hand, is crucial to maintain the guest experience.Applying lessons learned from previous business ventures, like using durable and easily replaceable items, helped improve operations.Exploring alternative business models, like converting an office space into a boutique hotel, can lead to more profitable opportunities.Leveraging connections and marketing strategies like SEO and social media can help attract the target customer base.

Key Takeaways:Tyler is excited about setting up a new studio to create more in-depth, longer-form content on commercial real estate investing and development in 2025.Tyler has been very busy recently, with several property transactions and projects, including selling a property with a 305% return, closing on a 105-unit self-storage facility, and developing a 215-unit self-storage facility.Tyler is shifting his investment strategy to focus more on cash-flowing deals rather than just equity-focused projects.Tyler prefers metrics like annualized cash-on-cash return and equity multiple over IRR when evaluating deals.Tyler is not a fan of wholesaling commercial properties due to the challenges and costs involved.Tyler advises against trying to transition from residential to commercial real estate by just building a larger residential portfolio, and instead suggests selling residential properties and using the proceeds for a commercial investment.

Key Takeaways:The hotel renovation project is facing several challenges, including dealing with the historic nature of the building, unexpected issues like water leaks and structural problems, and high costs for things like the pool and electrical work.The team is working to preserve the character of the historic building while also modernizing it and making it functional for a boutique hotel.There are a lot of details and coordination required for a project like this, from managing contractors, to dealing with inspectors, to planning out the layout and amenities like the pool and bar.The project is over budget in some areas, like the pool, which is costing $400,000, which is about 10% of the total $5 million budget.Overall, the conversation highlights the complexities and challenges of renovating an older, historic building into a modern boutique hotel.

Key Takeaways:Tyler discussed his end-of-year planning rituals, including an annual tradition of writing down and burning things he wants to leave behind from the previous year.He shared insights from the CRE accelerator mastermind, highlighting the value of being part of a supportive community and learning from experts in different niches.Tyler talked about challenges with appraisals and how to proactively provide data to the appraiser to improve the valuation.He emphasized the importance of goal-setting, using SMART goals to break down lofty objectives into actionable daily tasks, especially for the brokers mastermind group.Tyler shared his personal goal of working 3 days a week in 2025, stressing the need to be selective with his time.He discussed the pros and cons of commercial condos as investments, generally advising against them due to potential HOA management issues.Tyler provided advice on financing strategies for adaptive reuse projects, suggesting reaching out to multiple lenders and pitching to potential investors.He highlighted the challenges of investing in coastal areas due to rising insurance costs and climate-related risks.

Key Takeaways:New Orleans has seen a 25-spot jump in the rankings, driven by its tourism industry, but still faces challenges with a recovering economy and susceptibility to boom-bust cycles.Charleston has seen robust population and employment growth, driven by manufacturing, logistics, and tourism, but is facing affordability challenges.Columbus, Ohio is a fast-growing, business-friendly city with a diversified economy and strong population growth, making it an attractive investment market.Detroit has seen a remarkable turnaround, with its first population increase in 66 years, driven by revitalization efforts and a more diverse economy.Manhattan has seen a strong rebound, with renewed vibrancy in the business district, though high housing costs remain a weakness.

Key Takeaways:The industrial sector is expected to see steady transaction volume in 2025, driven by interest rates remaining relatively stable. A potential interest rate drop could spur more activity.The office market is facing challenges, particularly with B and C class buildings, but 2025 is predicted to be a rebound year for leasing and pricing. Office to residential conversions will continue, but are limited in feasibility.The retail market is seeing softening in luxury segments, with a lack of new development. The focus is on quality deals rather than quantity, as it's difficult to replace existing retail space.When evaluating asset class performance, industrial, student housing, and senior living are highlighted as potential outperformers, though market-specific factors are crucial.Technology is playing a growing role, with AI tools for summarizing industry news and data, as well as data analytics platforms transforming site selection and tenant needs in the retail and office sectors.For job seekers in real estate, building connections in the industry and developing deep market expertise are key strategies to prepare for the 2026 job market.When selecting lenders, factors beyond just interest rates, such as loan terms, personal guarantees, and fees, should be carefully evaluated.

Key Takeaways:Emily Benedict's background in corporate America and residential real estate has helped her transition smoothly into commercial real estate. Her expertise in land entitlement and development is a valuable asset.Finding properties is a key challenge in commercial real estate compared to residential, requiring more networking and proactive outreach rather than relying on an MLS system.The educational resources and mastermind programs provided by the Cobble Group have been instrumental in accelerating Emily's learning curve and providing her with the tools and knowledge needed to succeed.Communication and client management are crucial, with Emily emphasizing the importance of keeping clients informed throughout the deal process.Emily has set ambitious goals for herself, including sending 10 personalized letters per day, making 50 cold calls per month, and closing 10 deals by July 2025 to achieve $5 million in sales volume.Emily's advice to residential real estate agents considering a move to commercial is to just "do it" and not be afraid, as the skills and knowledge are transferable, and the opportunities are significant.

Key Takeaways:Goal Setting: Tyler emphasizes the importance of setting SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals for the upcoming year and breaking them down into daily/weekly activities.Impact of Election: Tyler discusses the potential impact of the new president on commercial real estate, highlighting concerns around deregulation, tariffs, and immigration.Niche Focus: Tyler advises finding a niche and differentiating your commercial real estate brokerage, as he did by focusing on East Nashville and small businesses.Evaluating Deals Quickly: Tyler shares a "back-of-napkin" calculation method to quickly determine if a deal is worth further underwriting, based on price per square foot and desired cap rate.Providing Value-Added Services: Tyler suggests offering Property Performance Assessments to property owners as a way to get a foot in the door and build relationships.Leveraging Relationships and Networking: Tyler emphasizes the importance of regularly communicating with other brokers to stay informed about market trends and conditions.Efficient Use of Technology: Tyler discusses reducing reliance on expensive platforms like CoStar and instead leveraging free or low-cost data sources and personal market knowledge.Importance of Mentorship and Involvement in Organizations: Tyler highlights the benefits of being part of the Entrepreneurs Organization (EO) and the value of mentorship.

Key Takeaways:The Salt Ranch Hotel project in East Nashville was initially designed as a $17 million renovation, but had to be redesigned to a $10 million project to secure funding.The permitting process took 18 months, which Tyler described as an "absolute nightmare" due to government regulations and unexpected costs, like having to re-engineer the storm water system.Jacob Kromhout was brought on as the project manager to oversee construction, manage the budget and timeline, and serve as the communication link between Tyler and the general contractor.The hotel features many historical elements like exposed brick walls, hand-carved casings, and tall original windows that the team is working to preserve and incorporate into the boutique design.The project is currently making good progress, with exterior painting, tile installation, and framing/drywall work underway. Securing the site as the weather gets colder is a near-term priority.Tyler and Jacob plan to provide monthly construction updates to share the progress on the project, which is aiming for a spring 2025 opening.

Key Takeaways:Finding deals is not Tyler's biggest challenge as an investor - raising capital is. He has built a strong investor base through platforms like YouTube.Tyler emphasizes the importance of understanding the entire development process and learning from different trades, not just focusing on your own specialty.Financing, especially from banks, is a major challenge in commercial real estate. Tyler works with a few reliable lenders to make the process easier.Launching a podcast can be an effective way to build an investor base by developing long-term relationships with listeners.Tyler advises against letting a quick close compromise the due diligence process - it's crucial to still conduct proper inspections and evaluations.Networking through industry associations like CCIM, SIOR, and ULI can help connect new investors with others in the commercial real estate space.Tyler's investment strategy aims for a 2x equity multiple over 5 years, prioritizing long-term value creation over immediate cash flow.While Tyler has limited experience with campgrounds, he sees them as an interesting investment opportunity that requires understanding the specific market dynamics.

Key Takeaways:Focus on habits and controllable actions rather than just setting outcome-based goals. Break down big goals into smaller, daily/weekly tasks.Regularly communicate with clients, even if there is no new activity to report. Weekly or monthly check-ins can help maintain relationships.Understand the evolving KPIs in different commercial real estate sectors, like the shift in retail from just sales per square foot to more holistic metrics.Qualify potential clients quickly to ensure the assignment is a good fit and worth pursuing, especially in the retail sector.Leverage simple, actionable goals like asking for referrals in every conversation to drive incremental progress.Be open to feedback and suggestions from the audience to improve future discussions and cover topics of interest.

Key Takeaways:Tyler is starting site work this week on his Salt Ranch boutique hotel project in Nashville. He has also filmed enough YouTube content to last through February.Tyler hosted a CRE Accelerator mastermind call where students presented various commercial real estate deals, including a ground-up development, an owner-occupied deal, and a seller-financed deal. The group is planning an in-person event in Birmingham focused on flex space and ground-up development.Tyler had to let an employee go and hire a new attorney to handle the employment law issues. He is currently hiring for an office manager position.Tyler shared his experience and perspective on the multifamily market, noting that he prefers commercial real estate investments over multifamily due to concerns about overvaluation and lack of good deals.Tyler discussed his thoughts on the office market, stating that it depends on the specific location and property, and that he is selective in his office investments, preferring properties in areas with less competition.Tyler provided advice on tenant improvement allowances (TI) for retail spaces, emphasizing the importance of understanding the market and structuring leases that add value to the property.Tyler encouraged a recent finance graduate to consider starting in commercial real estate brokerage, rather than property management, if they are willing to work hard and go without a salary for the first 6-12 months.

Key Takeaways:Tariffs could significantly impact commercial real estate by increasing construction costs, reducing consumer spending, and putting pressure on commercial real estate values.Deregulation could benefit commercial real estate by reducing barriers for businesses, inspiring business confidence, and potentially streamlining processes like permitting and zoning.Immigration policies under Trump could exacerbate labor shortages in the construction industry if there are mass deportations or tightened immigration.In a high inflation environment, affordable and flexible spaces like contractor garages and micro-spaces may be viable options for tenants.The impact of Trump's policies on commercial real estate will depend on the specifics and how they are implemented, as well as the broader economic context.Owning hard assets like real estate may be a good hedge against inflation, but the overall investment strategy should consider the nuances of the economic and policy changes.

Key Takeaways:Identifying Emerging Markets:- Track public infrastructure projects, city council meetings, and development plans to identify areas primed for growth. - Look at residential market indicators like days on market to spot emerging neighborhoods. - Understand the local market dynamics, not just national trends.Balancing Risk vs. Reward:- Quantify and manage different types of risks, including feasibility, financial costs, and quality. - Aim for a low basis to better withstand potential risks. - Focus on buying right, as that can help mitigate issues even if other aspects of the project go wrong.Maintaining a Deal Pipeline:- Utilize Aristotle's advice - tell people what you're looking for, tell them, and then tell them what you told them. - Build relationships and network actively to uncover off-market opportunities. - Communicate your investment criteria clearly to everyone in your network.Staying Competitive Without Overpaying:- Prioritize understanding the seller's needs and offering unique solutions over just competing on price. - Build rapport and relationships with sellers to create a competitive advantage. - Consider the "blue ocean strategy" to find ways to provide value without direct competition.

Key Takeaways:Investing in education and resources: The participants recommended several books, trade publications, and industry events that have been valuable for commercial real estate brokers to invest in their professional development.Importance of mentorship and coaching: Finding the right mentor or coach, whether paid or unpaid, can have a significant impact on a broker's career growth. Building relationships and adding value are key to finding effective mentors.Leveraging mastermind groups: Participating in mastermind groups with other brokers and industry professionals provides opportunities to learn from others' experiences, build a valuable network, and gain new perspectives.Time management and efficiency: Implementing tools and habits like calendars, email management, and team coordination can help brokers stay organized and focused in the face of the many demands of the job.Personal branding and differentiation: Developing unique personal branding strategies, like wearing distinctive attire, can help brokers stand out and make a memorable impression with clients.

Key Takeaways:Focus on value-add projects rather than new construction - Why I prefer value-add deals as they often provide similar returns with less risk and debt compared to ground-up development.Importance of setting SMART goals - The value of setting Specific, Measurable, Achievable, Relevant, and Time-bound goals to increase the likelihood of achieving them.Surround yourself with the right people - I credit much of my success to being in the right rooms and networking with the right individuals who helped guide and support my growth.Challenges with the "Wash" project - Parking constraints have been a major issue in replicating this unique commercial real estate concept in other locations.Advice for new commercial real estate brokers - Read "Walkable City" by Jeff Speck to gain a deeper understanding of urbanism and city planning.Importance of proactively raising capital - Create a list of 100 potential investors and consistently promoting investment opportunities to successfully raise capital.

Key Takeaways:Focus on meaningful goals, not just financial ones. Tyler found that achieving monetary goals often felt empty and unfulfilling.Hire key personnel to handle operations and free yourself up to focus on your strengths, like content creation.Aggressively grow your content production and distribution, aiming for 50-100 pieces of content per week across platforms like YouTube.Expand your brokerage to 3-5 locations outside of Nashville over the next 5 years.Dedicate resources to your educational platforms like the CRE Accelerator and Brokers Mastermind to become the premier commercial real estate education provider.Emphasize the journey and personal growth over just hitting numerical targets. Enjoy the process, not just the end result.

Key Takeaways:There will be a 2-day CRE Accelerator Mastermind event in Nashville on October 18-19, 2024. This will be the first of these quarterly events.Approvals have been received for the Peerless Mill project, a 29-building industrial facility in Rossville, Georgia. I plan to start with indoor climate-controlled self-storage and industrial outdoor storage in phase one.The benefits of using self-storage management companies to handle upfront work like market studies and pro formas when getting into self-storage are discussed.During the mastermind event, I will cover topics like finding and funding your first deal, a property tour, and a goal-setting workshop for 2025. There will also have a session with a guest speaker on building business models for real estate investments. The value of the mastermind community and the importance of being selective with business partnerships to avoid dealing with "bad actors" in the industry is emphasized.Discussion on being open to different entry points into commercial real estate, including brokerage, accounting, urban planning, etc. and how to find value in learning from various perspectives.Why I prefer the mastermind group approach over one-on-one consulting due to the scalability and community benefits it provides.

Key Takeaways:1. Navigating market volatility and unpredictability is crucial for commercial real estate brokers. Adapting to constant change and being responsive to market shifts is essential.2. The retail market has undergone a rapid transformation, shifting from the "retail apocalypse" narrative to being considered a safe and profitable asset class. Brokers need to stay on top of evolving consumer behavior and the impact of e-commerce.3. Technology is playing an increasingly important role in the commercial real estate industry, from automation and data analytics in industrial properties to virtual tours and customer behavior tracking in retail. However, brokers should balance the use of technology with traditional prospecting and marketing methods.4. Sustainability and green building initiatives, while desirable, often face challenges in terms of economic viability, as tenants and owners are reluctant to pay a premium for these features.5. For new brokers navigating a volatile market, the key is to focus on effective prospecting, data synthesis to become market experts, and aggressive marketing to stand out.

Key Takeaways:Importance of getting everything in writing, even with trusted partners, to avoid legal issues down the line.Value of being involved in local programs like Leadership Nashville to network and learn about the city.Launching a new 2-minute video series on YouTube to provide quick, focused commercial real estate education.Emphasizing the need for new commercial investors to treat the transition from residential as starting over, and be open to continuous learning.Recommendations for finding flex space opportunities by surveying local brokers and analyzing market data.Expectation of significant increases in insurance premiums nationwide due to the impact of hurricanes.Highlighting the effectiveness of mailers as a strategy for finding off-market commercial properties.Advising aspiring real estate developers to gain experience by working for an established development firm first.

Key Takeaways:IThe PSC Metals property owned by Carl Icahn is a significant urban redevelopment opportunity in Nashville, located on the Cumberland River near downtown.The property has been a scrapyard for decades and is heavily contaminated, potentially requiring hundreds of millions of dollars to clean up.Redeveloping the site will be complex, requiring collaboration with the city, state, and federal government, as well as community engagement.The redevelopment is expected to include vertical, mixed-use development with residential, commercial, and hospitality components, as well as public spaces and infrastructure improvements.Integrating public transportation, such as a trolley system or water taxis, is seen as an important aspect of the redevelopment.The community and local politicians will play a key role in shaping the redevelopment, and constructive engagement will be crucial to the project's success.The redevelopment is viewed as a legacy project that could transform Nashville's riverfront and serve as a model for urban revitalization.