“You have to go see the real estate.”
Technological advancement is changing the management and evaluation of commercial real estate. The pictures in OM’s get prettier and prettier. Drone footage can give you a bird’s eye view of the surroundings, and if you are lucky, it’s not just still shots, but you are going to get interior and exterior video at the click of a button.
For management, online portals are accessible 24 hours a day regardless of how many time zones you are from your property, giving owners instant access to the financial health of their property. A well-placed array of Ring cameras can give you instant visibility on your property, night or day, 365 days a year.
Technology has changed commercial real estate from “I need to be able to drive to it,” to, “I can effectively operate my property from a yacht in the Mediterranean.”
It’s awesome BUT YOU HAVE TO PUT YOUR EYES ON THE REAL ESTATE BEFORE YOU BUY IT.
In a previous article we talked about how the property is either worth much more or a lot less once you see it. Even with all the tech, seeing is knowing. In 2022 we traveled around the country; by car to too many Western states to count, and maybe 10+ trips to the East to make sure our clients were putting their money in good deals.
Thank goodness we did, because there were a few frogs we kissed, that really were toads. This year we turned down properties that were 7-8% Cap Rates and they needed to be 10% Cap Rates based on the condition or location. In December we passed on what looked like a great NNN deal, that was more on the corner of Main-and-Lame than Main-and-Main.
Every deal can look great on paper, but for our money, our eyes always tell the true story.
For a more detailed checklist of what to do when considering a property for sale, see our recent article here with a list of key things to look for during a property tour.