As a member of the Forbes Business Council, Lee Kiser dives into his thoughts on the significance of building a strong CRE foundation to sustain brokers through the highs and lows of the market. The full article is available at Forbes.com.
Two years ago, in the first quarter of 2020 when the pandemic hit, transactions in commercial real estate (CRE) stopped like water at a dam. Investors, lenders, appraisers and tenants all tried to figure out how to navigate the market. A year later, as everyone developed protocol, that dam burst and a wave of pent-up capital flooded the market. The wave continued through 2021, and most brokers still have a lingering pipeline of activity from the past year. When the market is heated like this, commercial real estate brokers experience record years and earnings.
I have seen this happen several times in my career. But for many newer brokers, this was their first experience with a boom market. However, most markets are not boom markets. The true gauge of a broker’s skill is whether they can sustain the same income levels in a down market as they can in a boom market. What will you do when the wave is no longer strong enough for you to ride? A strong foundation is the answer. A strong foundation can carry and guide you through unpredictable or slower times. Here are three pieces of advice for you to incorporate into your CRE foundation.