1. How does your firm’s industry expertise and local market insight shape the way you support clients in an evolving real estate landscape?
At Unique Properties our role consists primarily of being commercial real estate brokers first, however we strongly consider ourselves advisors as well. We primarily work with local owners/investors of commercial real estate with the acquisition, disposition or leasing of several asset types; our team primarily focuses on industrial/flex, retail, and development land. We work closely with owners in the strategizing, future planning and analyzing of their properties many times before we ever get to a lease or sale, and we pride ourselves in being more than just brokers.
Unique Properties has always been known as the top local brokerage firm in Colorado, and with that we have made it our goal to 1) continue that reputation and 2) make a dedicated effort to working with local owners & properties. We support our clients by offering personalized service with a hands-on, communicative approach and pride ourselves on being direct and candid about market conditions, ensuring our clients have the knowledge they need to make informed decisions.
2. What strategies have been most effective in helping property owners maximize the value of their assets in today’s market?
There are several strategies we use to help maximize asset values. First, we position properties to appeal to a wide range of buyers and tenants, broadening the pool of potential interest. Second, we implement targeted leasing strategies designed to enhance income potential and stabilize cash flow. Lastly, we craft tailored marketing campaigns that generate strong demand and ensure we secure the highest and best offers. By creating a competitive environment for each listing, we help owners achieve maximum value in today’s market.
3. How do you approach lease negotiations to create long-term stability for property owners while staying competitive with market conditions?
Our approach to lease negotiations focuses on aligning the owners’ long-term goals with the market to secure the best tenant for that time. Whether that means we take a shorter-term deal versus a longer-term deal to create that stability. Further, we conduct extensive market analyses to make sure that we are competitive within the marketplace while also ensuring we do the proper due diligence for any/every tenant to ensure their credibility. Lastly, we work closely with our owners to negotiate clauses within the actual lease agreement that protect them from the multitude of downsides, while ensuring the upside is within reach. Our goal is to strike a balance between securing a reliable income source for the owner while also maintaining an attractive and competitive offering in the marketplace.
4. With fluctuating property valuations and tax assessments, what are the biggest challenges property owners face, and how do you advise them to navigate these?
The biggest challenge property owners face with fluctuating valuations and tax assessments is the potential for increased operating costs and reduced net income. We continually see an increase in tax assessments while dealing with a shifting valuation balance from these fluctuations and the volatile interest rate, and general economic environment.
We approach this by annually advising owners to be proactive by reviewing and reassessing their operating costs, whether that be a property tax protest, new management opportunities, or getting updated insurance quotes. We work hard to structure leases with pass-through provisions to help mitigate the owner’s risk, too. Depending on the owners’ desired length of holding term, we recommend different strategic improvements to the property or the rent roll which helps us set ourselves up for future success.
5. Looking ahead, what key shifts or opportunities do you anticipate in Colorado’s commercial real estate market that property owners and investors should be preparing for?
As we continually see quarterly/yearly shifts in the Colorado CRE market, our main priority is to stay ahead of the curve and adjust as necessary. We have seen so many changes over the last 5 years, and with our nimble and creative approach to each deal, we have been successful in closing successful deals for clients across all property types.
We believe there will be continued opportunities within the value-add market, as there is a generational shift in wealth and real estate, and we are seeing more owner gear towards hands-off real estate investments. The industrial/warehousing sector has proven to have a stronghold on stable, and increasing, rents and a strong tenant/buyer base. While office properties have struggled, we are beginning to see opportunities with lower priced real estate appealing to creative buyers.
We are finding opportunities with anything and everything we work on, as long as we can create or articulate the right story. We have been successful in doing so and will continue to work hard in keeping the momentum!
Brett MacDougall & Michael DeSantis
Unique Properties