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Southwest Florida BUSINESS TODAY ®
JULY 2021
COMMERCIAL REAL ESTATE MARKET A look at commercial real estate trends & topics in Southwest Florida
Three unfounded fears that will cost you during negotiations Fear can be a motivating factor but, more often than not, is baseless, misplaced and ultimately a thief of our desired outcome. Consider an analogy from nature: A tiger can run 30-40 miles per hour, but only in short bursts. A gazelle can sustain speeds of 30-40 mph with bursts up to 60 mph. Based on the numbers alone, a tiger should never be able to catch a gazelle. But with strategy, prowess and striking fear into its prey, a tiger’s pursuit results in the gazelle’s fatal end. This may seem like an extreme or irrelevant analogy to a real estate negotiation, but fear affects humans’ minds just as it does animals’, by clouding our thinking and leading to feelings of intimidation and poor decision making. It is paralytic and results in an undesired end for one party. The following are three key fears that, once you’ve identified them, can be disarmed and defused to prevent you from losing: Fear of Making a Premature Commitment Many people believe that submitting a Letter of Intent or Request for Proposal on a property commits them to the terms of the deal or to that specific property. This is just a misunderstanding. Negotiations performed via a non-binding LOI in commercial real estate are just that, non-binding, and it’s an acceptable practice to submit non-binding LOIs on more than one property at a time. Submitting terms in the form of an LOI is not a premature commitment; instead it’s a way to address and negotiate the basic financial and business points of a deal before moving forward with the legal expense
root, it’s either a fear of rejection (“What if they think unfavorably of me?”) or a fear of loss (losing relationship status, losing a reputation, losing an argument, or losing a good deal in pursuit of a better deal), or both. The truth is that confrontation is not a bad thing. It’s an inevitable path to clarity and a greater outcome for both parties, especially anytime you are dealing with a high-dollar negotiation. When handled professionally, confrontation is respectable and can strengthen a relationship. Leaning on a team of advisors and professionals also helps remove the personal confrontation a doctor feels when going up against a professional landlord and creates a competitive business scenario that drives greater concessions. Think Like A Human, Not A Gazelle While a gazelle’s fear of a tiger is legitimate, a tenant’s fear of a lease or purchase negotiation, or dealing with a landlord or seller is not. Submitting to fear in a real estate negotiation can lead to a string of bad decisions that can result in six-to-seven-figure losses over the life of a practice. With the help of an expert real estate agent, a healthcare practice can navigate a lease or purchase negotiation at no cost and with confidence, strong posture and competitive options, all of which prevent fear from limiting any desired outcomes.
of drafting and signing a lease or contract. It’s not until a tenant (or buyer) and landlord (or seller) mutually executes a lease or purchase contract that the parties are legally obligated to perform the terms. Fear of Acting Inappropriately There’s a common belief that it’s inappropriate to ‘shop’ for the best offer on the market. This fear could apply to property locations, financing options, service providBY JARED ers, equipment vendors and more. VANDERSLUIS This process of competitive Guest Columnist procurement, which savvy business owners always employ, is sometimes labeled as ‘shopping,’ which sounds unrefined or disreputable. However, it’s normal and accepted in the commercial real estate world. As a buyer or tenant, competitively procuring the best possible terms can only be achieved by securing multiple offers from multiple properties in order to find the best fit. Negotiating with a landlord or seller or requesting a service provider submit a quote does not commit you to that offer, nor is it inappropriate. Instead, failing to competitively procure solutions will surely end in a loss. Fear of Confrontation Most people have this fear innately. It’s something salespeople and real estate agents must quickly overcome if they’re going to make it in their field. At the
Jared Vandersluis is an agent with CARR, the nation’s leading provider of commercial real estate services for health care tenants and buyers. Contact (417) 693-2303 or jared.vandersluis@carr.us.
Trez Capital closes financing on residential development Trez Capital, a private real estate lender helping to build better communities across North America, funded an $8.34-million loan for the site acquisition and construction of new single-family homes within a large development in Naples. The project, Corsica at Talis Park, is part of the broader Talis Park community, which features 224 single-family homes, 268 condominiums, a clubhouse, restaurants and a Pete Dye and Greg Norman-designed golf course. Corsica Talis Park Owner JV 2 is the borrower. Brett Forman, Trez Capital executive managing director for the Eastern U.S., and Scott Mehlman, vice resident of origination, originated the transaction on behalf of the lender. The borrower plans to build 12 single-family coach-style homes averaging 2,957 square feet in size on nearly two acres on Corsica Way.
Trez Capital funded an $8.34 million loan for the site acquisition and construction of new single-family homes within a large development in Naples. Construction is set to begin immediately. Ten of the 12 homes are presold, and about 90% of the entire Talis Park development is sold out. Additional Talis Park amenities include a spa, gym, two swimming pools, six tennis courts and golf facilities to complement the golf course. “Like many communities in Florida, Talis Park has benefitted from the
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massive influx of new residents moving to the state,” Forman said. “The sharp rise in population intensifies the need for new housing in Florida’s most desirable markets, including Naples. The lack of supply is also driving significant price increases.” In Central Florida, the lender has closed nearly $20 million in lot development financing over the past six months. It also recently funded a $44.14 million first mortgage construction loan for a new apartment community near Daytona Beach. “We apply our rigorous resultsoriented, risk managed approach when evaluating opportunities,” Forman said. “Our criteria for selecting a lending or investment opportunity is to focus on markets with a growing population and higher-than-average job growth. Florida is a market where we see a lot of opportunity.”
Storage Works announces opening of Fort Myers facility
Storage Works opened its new vehicle storage facility RV Boat Storage Works in Fort Myers. With over 200 spaces, the secured facility offers both covered and open storage options, pull thru spaces ranging up to 65-feet in length, 60-degree angled parking for easier maneuverability and 24/7 availability for customers. The facility is located on Work Drive. “Four lanes of brand new road to I-75 exits north or south allows for ideal, quick and easy access for our customers,” said owner and operators Sal and Ginny Dickinson. Facility amenities include 30-amp or 20/15-amp electric for all covered parking, wash down area, dump station and free air and ice, plus several state-of-the-art technology solutions for customers.
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