Broker Opinion of Value

The Benefits of a Regular Broker Opinion of Value & Methods to Improve Property Performance

Let’s be honest, we’re Commercial Real Estate Brokers and our job is to broker transactions. The best way we’ve found to do that is to provide tremendous value to owners in the market we specialize in: Cobb and Fulton Counties. By offering guidance on property and portfolio decisions, we help Investors and Owners increase cash flow, decrease the burden of management, and increase the overall satisfaction of ownership. The result? These satisfied owners become a large portion of our client base. We each do well in the long run working together.                          

In this article, we will delve into the benefits of leveraging our years of experience in brokering transactions, working with successful investors, and studying their strategies. We will emphasize how our insights, given to you through a Broker Opinion of Value, along with a comprehensive review of property performance, can play a pivotal role in maximizing cash flow and elevating your commercial real estate portfolio.

The Power of Measurement

Simply put, you can’t evaluate what isn’t measured. We have found that a thorough review of a property’s performance helps an owner understand not just the current property condition, but works as a framework for future management decisions. Over the course of ownership, expenses creep up, rents stay just below market value and the owner unknowingly leaves substantial cash on the table. Our overall goal is to help evaluate and measure the performance of a given property and help the owner chart a course for maximum success. No owner wants to lose money or make a bad investment. That’s why knowing what metrics to measure and how they benchmark within the industry is so valuable.

Hidden Opportunities

More often than not, our Broker Opinion of Value finds expenses that have crept up or, even worse, costly deferred maintenance because management was focused on conserving cash, rather than maximizing the return on investment (ROI) of the dollars generated. By shining a light on these areas, we help owners identify opportunities to enhance cash flow, driving their investments towards greater profitability. We focus first on the money coming in. We’ll examine how rents compare to market and spend time understanding the drivers of vacancies and how we can increase occupancy at the property level. By understanding where opportunity lies to improve the property, we can increase revenue and occupancy. Turning to expenses, we want to examine how money is being spent, where can expenses be reduced and where should they be increased. We’ll determine if capital expenditures now can lead to better cash flow in the future.

Portfolio Stability: Shielding Against Uncertainties

Two scenarios pose significant risks for property owners: short-term debt maturities and insufficient reserves to cover unexpected expenses. In both cases, owners find themselves burdened with substantial bills and inadequate cash on hand. By evaluating properties both in a silo and the portfolio holistically, we create customized plans that transform the unpredictable and unavoidable into manageable situations, fortifying portfolio stability.

Avoiding Bad Decisions:

Industrial real estate is a great investment because it’s difficult to develop and businesses usually stay in a location long term. The down side is that mistakes can be costly. Putting the wrong business in a warehouse or business park can cause environmental issues, legal issues, and issues with the neighbors. We study the types of businesses that do well in each type of building. Do you have a nuisance tenant or situation? Let’s talk through a solution.

Asset Management:

Within our Broker Opinion of Value, we often highlight strategies to streamline asset management. We always will recommend moving to a NNN lease where possible. This helps shield against rising costs. We study tenant mix and tenant use. We want to ensure the tenants we put in the buildings are ideal fits and won’t pose management, financial or environmental issues down the line. Challenge us with your specific requirements and let us guide you towards optimal asset management practices.

Exit Strategies:

Some investors plan to hold short-term, some longer-term and some investors plan to pass down their assets to children as a legacy. We’ve helped Owners with all the above strategies. What is important is to have a plan in place for when you are no longer running the asset. Maybe that’s because we sold it for a great price and you’re at the beach, or maybe it’s when the next generation is running the business. Whatever your goal, we want to work to create an Exit Strategy for you that maximizes the value of your property, minimizes the hassle factor, and protects the soundness of the investment.

We don’t want a transactional relationship. We want to empower you to make informed investment decisions. Through a comprehensive review of property performance, you unlock opportunities to increase cash flow, fortify portfolio stability, identify growth potential, and optimize asset management.

Give us a call and we’ll ensure your portfolio is fully leased and in good condition.