Common Mistakes When Buying Commercial Real Estate

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November 17, 2014
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July 28, 2015

Mistake 1 – Disconnect Between Real Estate Decisions and Overall Business Strategy

The most important thing a business must keep in mind when engaged in a real estate decision, is that the decision you are making isn’t about real estate… it’s about your business. You’re not leasing/purchasing space—you’re growing your business.

The biggest mistake made by small- and mid-market companies is the failure to fully align and connect their real estate decisions with their overall business strategy. Even companies that have as little as 2,500 square feet of space, can gain significant operational, financial and marketing advantages by taking a strategic approach.

The failure to connect real estate to you overall business strategy not only has the direct impact of higher occupancy costs, it is likely to have measurably adverse effects on cash flow, the flexibility and control of your business, productivity, and on your ability to compete.

Mistake 2 – Failure to Understand the Market

With the Internet today it is easier than ever to think you have an understanding of the market. In a matter of seconds you can see what space is available and even how much the space is leasing or selling for.

This has had two negative consequences:

  • Armed with this information, business owners and executives have been lulled into a false sense of confidence
  • Well, frankly, real estate brokers have gotten complacent. It’s easier than ever to pull reams of data, print out tons of pictures, and present the appearance of knowledge. While this has helped real estate agents close business, it’s hurting their clients.


The reality is that while the transactional information about real estate is easily available, the knowledge about real estate and how it strategically aligns with your business is as difficult to access and disseminate as ever. The ecosystem that comprises the commercial real estate industry is fraught with complexity and fractured service providers.  Understanding the market and utilizing your project’s appropriate industry tools is paramount to a successful and timely real estate services.

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