Advising Clients in Trophy Assets with Jason Maier
Oct 3, 2023
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Jason Maier, an expert in commercial real estate management and development across multiple sectors, discusses broker/client relationships, advising high net worth clients, predictions about the commercial real estate market's direction, and current opportunities in CRE.
Advisors focus on clients' best interests and make strategic decisions aligned with their goals and objectives in the commercial real estate industry.
Identifying distressed or underutilized properties in the current market presents opportunities for value creation and increased returns.
Networking with high-net-worth individuals and building strong relationships is essential for success in the commercial real estate industry.
Deep dives
Differentiating between brokers and advisors
The speaker emphasizes the distinction between brokers and advisors in the commercial real estate industry. Brokers are motivated by commissions and may sell any property, while advisors prioritize ensuring that clients purchase the right property. By taking on the role of an advisor, professionals focus on the client's best interests, providing guidance and making strategic decisions that align with their goals and objectives.
Finding value through distressed and underutilized properties
The key to finding value in the current market lies in identifying distressed or underutilized properties. These properties present opportunities for buyers to add value and increase returns. For example, properties with outdated or struggling tenants can be repositioned with stronger tenants at higher rents. Additionally, properties that are being under-leased can be restructured to maximize occupancy and generate higher cash flows. These value-driven strategies require expertise and vision to recognize the potential in overlooked assets.
Building relationships with high-net-worth individuals
Networking with high-net-worth individuals in the commercial real estate industry is essential for success. Building strong relationships with brokers, attorneys, and financial advisors is a valuable approach. Demonstrating trustworthiness, expertise, and a track record of successful deals fosters referrals from these professionals. Additionally, catering to the specific needs and objectives of high-net-worth individuals, such as diversification and passive income generation, helps establish a reputation as a trusted advisor in the industry.
Navigating the current market conditions
The current market conditions require a nuanced approach. With interest rates impacting returns, buyers are seeking properties with long-term value and appreciation potential. Underutilized properties with tenants likely to struggle can offer opportunities for retenanting and higher rents in the future. Moreover, focusing on stable income generation and asset preservation rather than immediate cash flow can be a strategic approach. While it is a challenging market, having the vision to identify value and the expertise to evaluate opportunities are crucial in maximizing returns.
Differentiating between brokers and advisors
Understanding the difference between brokers and advisors is crucial for investors. Advisors prioritize the client's best interests and make strategic recommendations based on expertise and market analysis. They focus on long-term value and aligning investments with the client's goals. On the other hand, brokers may prioritize sales commissions and may not always provide the best investment options. Investors should seek advisors who have a strong reputation, demonstrate integrity, and prioritize client satisfaction.
In this conversation, enjoy hearing a discussion about broker/ client relationships, how Jason advises his high net worth clients, Jason's predictions about the direction of the commercial real estate market, and where Jason sees opportunities in CRE right now.
At Northmarq, Jason Maier provides clients with the benefits of his expertise in management and development across multiple property sectors, providing clients with practical analytical experience and ability. Maier has represented some of the most prominent buyers and sellers, institutional and private, in the acquisition and disposition of retail, office and larger portfolio properties. Prior to joining Northmarq, Maier served as a Senior Director at Stan Johnson Company. Before Stan Johnson Company, City Sites Commercial Group, Massey Knakal Realty Services, and New Castle Realty. In addition, he pioneered Eagle Eye Investment Trust, a private equity fund investing in national credit tenant and development of new, single-tenant pad sites.
