The Future of Commercial Real Estate

Ethan Ash, KW New England Regional Ambassador and former NHCIBOR & NECPE President, is an Associate Broker and has been working in Real Estate Development and Management since he graduated the University of New Hampshire. After focusing on student housing, he joined the KW commercial team in 2016, bringing his marketing and management knowledge and enthusiasm. As a lifelong resident of New Hampshire, growing up in the Lakes Region and studying and working on the seacoast, Ethan knows this area, this industry and understands small business needs.

Every Client Needs a Different Approach

When I started, I thought there was a right way and a wrong way to make money in commercial real estate. I would advise against investing in something that didn’t fit my risk profile or rate of return. After 10 years, I realized that there are so many different ways to make money, and that the right opportunity for me may be the wrong one for my client, and vice versa. For instance, I have helped many clients make a lot of money in the restaurant industry, but I know I don’t understand either the front or the back of the house, and I would be one of the many restaurant owners who fail in the first 2 years. But now I can recognize a good opportunity for someone else.

Consumer Spending Reshaping Demand

The key trend currently transforming commercial real estate services and market demand is consumer spending. This ongoing shift in what the market is spending its discretionary income on, and how much discretionary income they have after paying living expenses (i.e., rent and food) and travel expenses (i.e., the continued rise in gas prices), is affecting retail spending and services. The money is still being spent, but in fewer places than before. Certain businesses will suffer, and we are likely going to have some challenging times ahead. What may help stabilize this area is the continued population growth, which helps fill spending gaps. Here in New Hampshire, we may be able to avoid some of those pain points that I expect the nation as a whole to experience.

Prioritizing Client Goals

I always start with the client’s objectives when advising on real estate decisions. The current or future market projections are limited and ever-changing. What a client is interested in for different investment types, and which markets they believe in, is much more important than anything else. Once we understand what matters to them and any challenges they face, we set a fair market price and estimate the potential upside for buying, selling, or leasing a given commercial space. Pretending we have a crystal ball and know what will happen is silly, but going into an investment without any information or data is also naive. It is about balancing what we believe might happen and what we are willing to stake our hard-earned money on.

Knowing Your Role Builds Trust

Knowing and being comfortable with my place on the team has helped me build trust, navigate negotiations and guide clients through complex transactions. I see myself as the player who brings to the group what the group needs. Some people are looking for a leader in the transaction, making all the difficult calls, and others prefer me to be an advisor, bringing information they otherwise would not have, and letting them make the decision themselves. And some clients fluctuate throughout the transaction, needing to hand off all responsibility to hand off none. I've handled many transactions throughout my career so that I can fit into any role in the group. Staying in my role and not having to be something else is what sets me apart.

Self-Reflection for Successful Career Building

My advice to professionals wanting a successful career in commercial real estate and advisory services is to look in the mirror and ask yourself, “What are you good at?,” “What are you weak at?,” “What do your clients need you to be to be successful?,” and “What do you need from your life to bring you happiness and fulfillment?” Too many agents don’t know what value they bring to the table, and a couple of years later, they are looking for a new career. If they did a good deal of self-reflection at the beginning of this career and kept working on answering those questions for themselves, they would likely have brought a lot of value to their clients. In this business, when you do that, you make a very nice life for yourself.