donald teel

Road Kill: Tenant Trough, Part 2

May 12, 2010 By Donald Teel Leave a Comment

Here we are again, with time on our hands to engage in a little Commercial Real Estate Road Kill where we can shoot the breeze about CRE. This is a continuation of my rambling discussion about the current “The Tenant Trough” that is impacting office and retail owners.

This was shot while tooling down Interstate 40 between Flagstaff and Kingman, Arizona. It’s all part of a new feature for this blog entitled CRE Road Kill. Stay tuned for more CRE Road Kill.

Donald Teel is a Senior Associate and Principal with Arizona Commercial, an Arizona commercial real estate brokerage and property management firm, headquartered in Prescott, Arizona. Need more information? Please call 1-877-777-9100 or, if you prefer, you may email Donald Teel

Break from the Pack Marketing Models

February 17, 2010 By Donald Teel Leave a Comment

Traditional commercial real estate marketing seems to be experiencing erosion.

Why?

Because many of the old models don’t work well in an increasingly collaborative world where people want to have a relationship and role in the creation of their investment outcomes, that’s why.

How is your property being marketed? How quickly can you turn the message and communicate change to thousands of people in a moment of time? These are huge questions for property owners.

In the marketing of your property are you running with the big dogs or licking with the pups? How can you break from the pack in 2010 and beyond enabling you to run with the big dogs?

Meet the Puppies Lickin’ and Playin’ on the Porch

When it comes to commercial real estate marketing, there are pups on the porch lickin’ and there are big dogs in the fields runnin’.
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“Market Float” – Tip #114

February 9, 2010 By Donald Teel Leave a Comment

Owners are experiencing significant leasing pressure and the market is beginning to pinch their revenue stream. In some cases the pinch is like a kink in a water hose. I’m developing float strategies for clients. It looks like another 12-24 months before we get back to shore. Here’s tip #114:

tip 114

Donald Teel is a Senior Associate with Arizona Commercial, an Arizona commercial brokerage and property management firm. Need more information? Please call 1-877-777-9100 or, if you prefer, you may email Donald Teel

Meet My “Cooperating Competitors”

December 15, 2009 By Donald Teel Leave a Comment

It’s not often that you will find me promoting my competitors, much less endorse them as cooperative.

Yet, in this case the endorsement is a necessary and complimentary one that serves the interests of commercial real estate investors in the greater Prescott, Arizona market area.

Although oxymoronic, please meet my “cooperating competitors.”

The Prescott Area Commercial Group (PACG) is a non-profit real estate (is “non-profit real estate” an oxymoron) consortium that promotes investment, training and networking of property information among central and northern Arizona commercial brokers and agents.

The Power of Disciplined Focus

PACG represents a disciplined focus on commercial real estate investment and property performance among perhaps the most experienced and highly trained professionals who know and understand the fundamentals of investing in real estate.

PACG was originally formed as a commercial networking group that met to discuss Prescott, Arizona’s commercial real estate market, properties and opportunities. Now PACG is more than a quiet group meeting over coffee to exchange listing and sales information.

The commercial real estate market demands a disciplined focus in order to stay on top of the rapidly evolving trends.

Risky Business or Cooperative Competitors?

PACG is now the most prominent and perhaps “connected” group of commercial specialists in the northern Arizona real estate market.

Having met with most of the PACG Members and interacted with them, I can state without reservation that they are a qualified and trustworthy group that any owner or tenant can call on for assistance. PACG members know their stuff and they work hard to consistently improve their skills and knowledge in order to meet the needs of each client.

Introducing competitors may be regarded as a bit risky, however, in today’s volatile market I believe having a network of trusted colleagues who can provide a kind of “brain trust” is an asset that can be called upon and tapped into for solutions.

Sounding Rusty and Eroded

At the risk of sounding old or, at least rusty, dated and eroded, I’m going to reach back in time and drag an old principle forward. In decades long gone the industry where I have made my mark and enjoyed my gains (and honestly, some losses too) was one built upon trusted associations where business resulted largely from shared information gained from a trusted network of professionals.

Yes, some of this has been eroded over time, which is why I find my association with PACG PACG members refreshing, non-threatening and beneficial to both me and my clients.

I don’t mind if you meet my trusted competitors.

Donald Teel is Senior Associate with Arizona Commercial, an Arizona commercial brokerage and property management firm. Need more information? Please call 1-877-777-9100 or, if you prefer, you may email Donald Teel

Commercial Real Estate Rebound

November 10, 2009 By Donald Teel Leave a Comment

Posted by Donald Teel, Arizona Commercial.

Jones Lang LaSalle Americas CEO Peter Roberts, CEO of Jones Lang LaSalle Americas, discusses the commercial real estate rebound and what investors are doing to prepare for it with FOX Business.

Donald Teel is Senior Associate with Arizona Commercial an Arizona commercial brokerage firm. Need more information call 1-877-777-9100 or, if you prefer, you may email Donald Teel

How 2s for Investment Today

October 8, 2009 By Donald Teel Leave a Comment

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Posted by Donald Teel – Arizona Commercial

Everyone, everywhere, is talking about the real estate market. Even people who do not know anything about the real estate market are talking about the real estate market.

Understandably, much of the discussion remains negative. After all, some estimates tells us that the net value of all commercial real estate in the United States has plummeted by as much as 30% since 2006. I would like to address the shiny side of this very ugly coin.

As we come to the end of 2009, how can we successfully invest in commercial real estate?

Many small to intermediate investors have been discovering that buying was the easy side of commercial real estate investment coin…the shiny side! Managing and turning properties in the volatile environment of 2009 has proved to be the tarnished side of our coin.

With respect to the fundamentals of investment, nothing has really changed. Yet, we all know much has changed and continues to change, especially with respect to the acquisition and cost of capital and sustained values. For the purpose of this article, I would like to place a market spin on what I think are the 10 most important principles for small commercial real estate investors to follow in 2010 and beyond.

Property Type. Who could have predicted that the multi-family sector would be where it is today based upon our assumptions ten years ago. We must remind ourselves that our assumptions are merely momentary conclusion based upon ever-evolving data and that the moving data is almost always something over which we have most likely, no control.

Type-casting isn’t just a Hollywood phenomenon, it’s imperative with every real estate transaction these days and in the case of multiple tenant revenues each lease will need to be sifted and ground down in order to determine its viability and value going forward. There are “leases” and there are “Leases” and there are “LEASES.” Nothing works well if the tenants don’t!

Inventory, absorption rates and occupancy rates and CAP rates are imperative to the investment equation. There is no negotiating these issues and they are deal breakers.

Still, it’s Location. It appears that the newest and perhaps safest strategy for small to medium investors is to get big by investing small all over. Just as mix of property types is essential to a sound investment strategy, so also is the principle of multiple locations based upon regional economic dissimilarities. Atlanta’s medical office values and projected demands will be different than those of Seattle and it would be ridiculous to compare Phoenix multi-family to say Manhattan multi-family.
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Expertise is a Commodity

June 28, 2009 By Donald Teel Leave a Comment

Posted by Donald Teel, Arizona Commercial

Ours has become a business culture and climate often made up of the lack of economic appreciation for many things and it seems there is a growing unwillingness to recognize the value of expertise, service and product quality and to mistakenly perceive that all things are open to negotiation. Or, worse yet, there is often a perception that all things are of equal value.

With a declining real estate market there is a mistaken notion that the value of commercial expertise is somehow diminished when instead its inherent value is increased due to the complexity of the market.

Often, when a client attempts to negotiate the cost my expertise downward, there is a corresponding decrease in my desire to commit resources, creativity and indeed the labor necessary to accomplish a stated objective. Accomplishing a client’s objectives is difficult in good markets; in bad markets the required disciplne is often excruciating.

Watch the humor but catch the economic drift of this YouTube video produced by Scofield Editorial, Inc. and entitled, The Vendor Client Relationship.

Warren Buffet Looking for “Bounce”

June 25, 2009 By Donald Teel Leave a Comment

Posted by Donald Teel, Arizona Commercial

Warren Buffet, considered by some to be the consumate investor, was interviewed on CNBC on June 24, 2009, and indicated that he believes we have not seen the end of the economic decline.

Email Donald Teel for Prescott, Arizona Commercial Property information or, if you prefer, call him, toll free at 877-777-9100.

Property Performance Analysis

May 18, 2009 By Donald Teel Leave a Comment

Property performance is now under assault with many factors coming into play that are not controlled by owners and potential investors.

Often, owners can become complacent with respect to ensuring long term property performance and that is why Arizona Commercial recommends an annual Property Performance Analysis (PPA).

Listen to the following PPA podcast by Donald Teel, then call Arizona Commercial for a FREE analysis of your property or your targeted investment.