By: HAYIM MIZRACHI, CCIM – President | Principal | Broker
Ryan Martin came into my office in November (2022) and said, “I just had a deal cancel escrow. Two more are on wobbly wheels.” I empathized but figured he’d just put it back in escrow and it would be ok. The very next week Ryan and I got a call from a buyer we’ve been working with on an enormous deal. The buyer’s message… “There’s no easy way to say this, we have to cancel escrow.”
They had valid reasons. Interest rates were increasing. Construction costs weren’t subsiding. Cap rates were expected to increase. Capital markets were frozen.
From reading headlines these days, you can also add concerns from the war in Ukraine, inflation challenges, the tech sector laying off tens of thousands of employees, energy crises in Europe, the U.S. stock market in bear territory and a recession that is allegedly inevitable.
Check your Attitude
I admit I was shell shocked for a couple weeks between November and December last year (2022). Commercial real estate professionals got comfortable with a sort of certainty that listings would sell once they hit the market. Not so anymore. Anxiety started to build in my chest about what 2023 would bring.
I remember the tumult of the GGR all too well. High caliber, highly experienced brokers mentally checked out. Their attitudes submitted. I was new and didn’t know any better. Jarrad and I showed up every day. Enthusiastic. Our careers were forged door to door as we physically canvassed businesses. We over indexed on relationships (i.e., coffees and lunches). Eventually, we infected our spheres of influence. They’d observe, “hey, you guys are really getting after it!” Our attitude paid dividends.
A New Day
In a down market, you focus on what you can control, not what you can’t. You show up a bit earlier, even if showing up is difficult. You call your clients and prospects, even if there isn’t much happening. The ninja move is to find something you can be legitimately optimistic about and offer a positive impression. I promise its infectious and pays dividends.
As the year turned from 2022 to 2023, MDL was invited to pitch a massive account. Ryan and I received multiple offers for that enormous deal that cancelled. I even helped a newer agent in my office secure a multimillion-dollar listing. The owner of which told us he spoke with two other brokers who were much more experienced for this particular assignment. “Their heads aren’t in the market right now.” That’s what the client told us when he was in our office signing the listing agreement.
I am excited for 2023! I am not delusional. It will be challenging. I will have to work harder and more focused. There’s nothing wrong with that by the way. Nothing is permanent. When things are good, they don’t stay good forever. When they’re bad, they don’t stay bad forever. I’m just going to charge ahead toward my colossal dreams. And I fully expect a year filled with fun and prosperity.
I wish you a year of fun and prosperity as well. You deserve it!
Where’s your head at?
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