Q. Can you tell us about your background and experience in commercial real estate?
A: I spent 30 years in the hospitality industry prior to the recent 20 years as a full-time commercial realtor. I’m a member of the CCIM (Certified Commercial Investment Member) Institute, which only 10% of commercial realtors nationwide can claim. A CCIM has received advanced training and provides sample transactions to the institute based in Chicago, which are graded to ensure a strong knowledge base and the ability to implement the institute’s teaching. In the state of North Dakota, there are only 15 CCIM members, and not all of them are active in the brokerage business.
Q. What current trends are you observing in the commercial real estate market?
A: I’m seeing shorter lease terms and fewer square feet being used per employee. There’s still work left to be done regarding how hybrid work models impact space usage, and this change will take time for space users to understand, and then for the market to adjust to.
Q. What are the key factors business owners should consider when looking for commercial property?
A: Functionality, location, timing, and price
Q. What are some common challenges that your clients face, and how do you recommend they handle them?
A: Clients are busy running their businesses, and when it’s time to find a new lease space or acquire a property, that gets added on to the daily workload. Responsiveness and momentum are important in a commercial real estate transaction, so tasks related to the lease or acquisition need to move up the daily priority list.
Q. What are the advantages and disadvantages of leasing versus buying commercial real estate?
A: For a buyer, the benefits are appreciation, depreciation, and a fixed base occupancy expense for the duration of a mortgage. For leasing, the benefits are nimbleness to change locations, shrink, or expand.
Q. In what situations would you recommend leasing, and in what situations would you recommend buying?
A: Lease if your business model is easily competed with, or if your staff size could increase or decrease rapidly. Buy if your strategy is to acquire and hold, and have your asset appreciate over time. In general, if a business’s net profit percentage is greater than the annual appreciation potential of a property, then lease.
Q. Are there emerging areas or types of properties that you think will be particularly important in the near future?
A: Medical offices, self-storage, and warehousing are all examples of properties that are in demand now and seem destined to be so in the future. I’m also interested in the ghost kitchen concept and am watching closely to see if it has long-term potential.
Q. What predictions do you have for the future of the commercial real estate market?




