19 APRIL 2024Why hire a dispositions pro instead of local market representatives? Savills Dispositions specialists are solely focused on getting rid of the surplus real estate at maximum value. We are not focused on being a local market broker representative, but we work with local broker reps, as they have the local knowledge and relevant base data. We transform the base data the local market broker representatives use into realistic, achievable pricing and timing for the unique surplus corporate real estate. The local reps' natural focus and incentive are to protect their market pricing because they have competing interests in serving local clients, landlords and associates. By contrast, Savills Dispositions' sole focus in every city is to get rid of that excess space to produce maximum cash flow. Timing is critical. To protect the client who is carrying the surplus real estate, we follow a process that ensures that we don't miss opportunities by listing at the wrong price.Can you explain at a high level how typical dispositions transactions work? Dispositions often start after a property has already been unsuccessfully listed by a local market broker. We start with the most basic steps:1. We conduct a detailed review of the client's objectives.2. We thoroughly assess each site's assets and issues.3. We analyze local market data from numerous resources, including brokers.Unlike typical local brokers, when we inspect the "surplus" site, we factor in all positive and negative issues, such as location, property condition, access, parking, shorter lease periods, construction requirements, lower ceilings, maintenance needs, etc. The details can make a significant difference in the on-time delivery of a dispositions project. We analyze a list of comparable sites, making necessary adjustments line by line, work with the local brokers. We assess the local reps' conflicts of interest­ for example, if they are working with landlords who don't want to see a surplus space undercut their own prices. One of the most critical steps we take is to transform the typical market data into realistic achievable pricing and timing targets for unique surplus real estate. We control the dispositions process every step of the way, maximizing the probability of success in all the transactions we take on. We bring an independent, holistic view to any market, to maximize the client's value within a given time frame. Each dispositions project is like starting a new business. It requires extraordinary focus to be effective
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