Commercial Real Estate Pro Network

Commercial Real Estate Professionals who work with Investors, Buyers and Sellers of Commercial Real Estate. We discuss today's opportunities, problems & solutions in Commercial Real Estate.


BIGGEST RISK with Frank Cottle


Frank Connell like to ask you, what is the BIGGEST RISK?



Well in in our business, which functionally is commercial real estate, I think it's cyclicality getting caught on the wrong side of the cycle. And you've seen a lot of property investors overall and market timing is always crucial. So cyclicality is probably the biggest risk and the protection from that comes with debt management. You can be highly you can deal with it. As much more effectively if you have a debt, a debt management program. So that comes back to what we were talking about with leasehold liabilities being a part of that cyclicality, exposure, not just physical buildings that you own. And the debt cycle of flexible workspace as opposed to a fixed workspace, where you have a fixed lease versus a service agreement is the most effective way to manage the cyclicality in real estate and the cyclicality in business.


 2020-06-23  1m