News & Research Archive

2009 is Over are you Still in the Business?

Jan 25, 2010

 

2009 is my 25th year as a commercial real estate broker and it certainly was one of my toughest years. The worst year in my career closings was 1990. The worst year in my working life was 1976 and it was actually my most rewarding year of knowledge that I learned from surviving it.

Cycles in business happen. We all know it but we never prepare for it and never take the necessary steps to succeed in one, rather we enter a positive cycle or a negative one. Most of us don't see a cycle coming or there are those that see a cycle change coming, but we rarely allow ourselves to actually make the necessary changes to our business to deal with them.

If you started 2009 as a commercial real estate broker and ended 2009 as one, Congratulations, you have "potentially" survived a real bummer of a year.  I say potentially because 2010 is not expected to be a whole lot better. Business activity is improving but actual deal flow is still down for virtually all businesses.  The jobs report continues to be a real concern and without true job growth the economy will not expand greatly any time soon.

A experienced broker friend of mine recently reflected that the difference between (1991) the last major full economic downturn and this severe recession (2009) is that back in 1991 he was young and could live on pretzels and beer, now with a family and large financial obligations he has entered 2010 with much more concern and conviction to succeed. He also indicated that it would the veterans that will ultimately survive while the younger inexperienced salespeople will leave the business. Once business comes back, the veterans will be full of business opportunities and businesses will start hiring younger salespeople to take the load of smaller deals while the veterans work on larger deals.

I disagree in some cases with that thought. Veterans that are used to success in most cases do understand what it takes to succeed but how many of them are ready to go back into the trenches - because that is what its going to take. Sales are going to be tied to smaller deals. Is a veteran prepared to do a 1,500 square foot deal and properly service that client?

The inexperienced younger agent may in fact be the survivor in this market. I started at the beginning of a down market in 1984 and did not know what a great market was. I just worked my business and succeeded. My early years in a down market would be considered solid years, even in a good market. So market conditions does not necessarily always equates to results.

As we enter 2010 creating a business plan for yourself and staying with your plan is more critical than ever. Do this before the year begins and really spend time developing that plan. It could be the difference between you ending in this business or not when 2010 comes to a close.

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Written by: Hans Hansson

E-mail: hans@starboardnet.com


Hans Hansson is President of Starboard TCN Worldwide Real Estate Services as well as a member of the Board of Directors for TCN Worldwide Real Estate. Hans has been an active broker for over 25 years in the San Francisco Bay Area and specializes in office leasing and investments. If you have any questions or comments please email hans@starboardnet.com or call him at (415) 765-6897. You may also check out his website, http://www.commercialspacefinder.com/.

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