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Boise Valley Commercial Maket Update - Where's This Market Headed? Are You Prepared? Main Boise Valley Commercial Real Estate
The Boise Valley Commercial Real Estate Market Is In A Dynamic Situation. Many of the market segments are strong, but others are feeling the pinch of the economic slowdown. This is the time to rethink your marketing stragety and to differentiate your business. Don't get caught on your heels, but be on your toes. Not making a decision is more detrimental than making one. If you're in the wrong location, whether that be a physical location or with your business model, make sure you're taking corrective action.

About six months ago, our company researched the restaurant segment of the Treasure Valley commercial real estate market.  At that time, we found that there was some revenue slowdown, but most operators were in a "wait and see" situation.  Almost all existing restaurant locations were taken and there wasn't much activity on those existing properties (i.e.; the restaurants were pretty much all spoken for & there wasn't much excess capacity on the market).  This past week we began a search for available restaurant properties for some clients and it became obvious, quickly that the situation had changed.

Now, given, the food service industry, along with other market segments like barbers and beauty salons, generally get hit early in periods of economic slowdown.  Not every operator sees the same changes due to their reputation, the quality of their product(s), their location, and their marketing efforts.  However, as a class, we are definitely seeing trends in those market segments.  We assisted one beauty salon in changing their location and, at the same time, pursuing a make-over themselves, if you will.  They are changing their strategy to stay ahead of the game - we found a place for them which gave them an edge over their past location &, hopefully, their competition.
 
We noticed a change in the restaurant segment starting within the last 6 months.  Earlier this week, we were contacted by brokers & building owners that many food service locations were either available now or would be available in the very near future.  Read that to mean that either those building owners are not receiving their rents on time, if at all, or their relationship with their tenants has indicated that the tenant may be anticipating lower revenues and may be preparing not to renew their lease.
 
What does this mean?  It means a few things for both owners and tenants alike.
 
For owners, I bet you're happy you are maintaining a good relationship with your tenants, right???  You are doing that, right??  Your tenants are your partners, right??  Owners, be proactive.... speak to your tenants, see how they're doing.  Are you willing to be flexible with them until the uncertainty in the economy clears up?  Are you doing everything you can to promote their businss?  Is there more you can do?  Are you willing to do that or face the prospect of having a space go dark with no clear incumbent?
 
For tenants, I bet you're happy you've maintained a balanced working relationship with your landlord, right???  You are doing that, right??  Your landlord is your partner, right??  Tenants, be proactive..... speak to your landlord, let them know how you’re doing.  Are you going to need their help during tough times?  It's a rhetorical question, I know the answer.  But, at the same time, break out your lease - take a look at your Options To Extend.  Do you know what the current market is?  Is it best to exercise your Option or renegotiate those terms?
 
For tenants & owners - speak to each other!  Redouble your marketing efforts; synergize!  If you’ve both been fostering a good working relationship, take it to the next level, do some joint marketing, promote each other when in meetings with others, there are a hundred ways to foster a win-win relationship.  If we're headed in the wrong direction relative to the economy, don't trim the wrong part of your budget - this is not the time to be on your heels, but it IS the time to be on your toes!
 
Think outside the box and turn on that light bulb that's in your creative minds. These are the times when people & companies differentiate themselves & those who are proactive are the ones we see pick up momentum.
 
You’ve got choices – MAKE THEM!
 
Need inspiration? Surround yourself with inspired people, it’s as simple as that. Here’s are two recommendations for you – visit  www.kituku.com and see what my friend Vincent Kituku is talking about. Whenever I’m in a lull, reading Vincent’s works is a sure pick-er-upper.  If you want to follow another inspired person who discusses Web 2.0, social networking and other things I don't fully comprehend, check out Jen Harris's blog:  http://mpccorpmarketing.wordpress.com/.  There other's out there, don't get me wrong & I'm sure I'll have friends ask me why I didn't mention them, please just accept that I only have a limited attention span.
 
Now, go get 'em!  If you need help assessing your current lease or options to extend, give us a holler & we'll help you figure it out.
 
Be good & treat all others with respect.  Good things happen to those who do. 
 
Posted by Scott Nicholson at 4/18/2008 6:28:00 PM
Comments (2)
Re:Boise Valley Commercial Maket Update - Where's This Market Headed? Are You Prepared?
Thanks for the possitive comments scott Great Advice Steve
Posted by on 4/20/2008 7:33 AM
Re:Boise Valley Commercial Maket Update - Where's This Market Headed? Are You Prepared?
Thanks Scott for the reference! I have listed on my site some of teh great 2.0 minds that I listen to. We really are in a market where it's not the LOUDEST (aka:one who spends the most on traditional marketing dollars) but the one who is the SMARTEST with their marketing dollars. One of my favorite lines is: you say that your best referrals come from current clients? Then WHY are you spending SO much $ trying to get new ones?
Nurture what you have, it will be appreciated & come back to you in good ways!
Posted by on 4/22/2008 9:46 AM
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Michelle Penick, Boise Idaho Real Estate Agent

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