Discover the 4 mistakes people who sell commercial property too late make and how much is cost them in the last market downturn between 2008-2010. For more information visit: https://bit.ly/2FmlR2z

1. The Most Common Reasons
People Sell Commercial Property
Too Late
1
2

2. The Most Common Reasons
People Sell Commercial Property
Too Late
2
1

3. The Most Common Reasons
People Sell Commercial Property
Too Late
3
4

4. The Most Common Reasons
People Sell Commercial Property
Too Late
4

6. THE

7. THE
LAST
MARKET

8. THE
LAST
MARKET

9. M
CORRECTION

10. COST

11. COST
OWNERS

12. -30.3%

13. FROM

14. FROM
2008-2010

15. OWNERS WHO SOLD

16. IN THESE COUNTIES

17. Essex
Middlesex
Rockingham

18. EXPERIENCED LOSSES
BECAUSE THEY SOLD
TOO LATE.

19. AVERAGE DECLINE IN $/SF BY PROPERTY TYPE
-23% -26.2% -10.5%
FLEX $/SF
Amount of decline in value from peak to trough in the average $/SF in the Essex, Middlesex, Rockingham Counties between $1M - $10M.
RETAIL $/SF INDUSTRIAL $/SF

20. AVERAGE DECLINE IN $/SF BY PROPERTY TYPE
-48.9% -30.3%
OFFICE $/SF AVERAGE $/SF
Amount of decline in value from peak to trough in the average $/SF in the Essex, Middlesex, Rocking Counties between $1M - $10M.

21. For the Past 45 Years, Market Cycles Have Lasted 10 Years
According to Dr. Chris E. Lee, historical real estate cycles have started around the 3rd year of each decade and
usually ended by the eighth year of that decade, starting in 1973.
0
1
3
4
5
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
PLATEAU
PHASE
TRANSITION
PHASE
TRANSITION
PHASE
GROW
TH
PHASE

22. Past Growth Phases Have Started on the “3”s
#1 1973
#2 1983
#3 1993
#4
#5 2013
#6 2023?
2003

23. Past Transition Phases Have Started on the “8”s
#1 1978
#2 1988
#3 1998
#4
#5 2018?
#6 2028?
2008

24. Why then, do
owners wait to
sell?

25. Reason #1:
Complacency

26. Market Cycle Psychology
Time
Value
Disbelief: this market’s
not coming back
Hope: well, maybe.
Buy In: this might
be the start of
something good.
Ecstatic: I love investing.
I’m never selling.
Time to double down.
Complacency: Just a cool
off period. The market will
pick up again.
Worry: What’s going on here?
Denial: My properties are
good ones. The values
will come back.
Capitulation: What happened?
How could the government just stand by ?

27. Reason # 1: Complacency
Complacency is the most dangerous state to ignore.
It’s the moment before the market corrects and values decline.
Buyers pull out of the market.
As demand falls, so do commercial real estate valuations; i.e. 30.3% from
2008-2010.

28. Reason #2:
Ownership &
Identity

30. The Endowment Effect - Nobel Peace Prize Research
Richard Thaler observed that
people, to avoid loss, will over
value what they own.
Daniel Kahneman and Jack L.
Knetsch studied Cornell
undergrads and coffee cups.
Undergrads with cups were
“unwilling to sell for less than
$5.25,” while their less fortunate
peers were “unwilling to pay
more than $2.25-$2.75.”
RICHARD
THALER
DANIEL
KAHNEMAN
JACK L.
KNETSCH

31. $5.25

32. $2.75

33. The Endowment Effect - Possession
The endowment effect results not from loss aversion, but from a sense of possession,
a feeling that an object is “mine.”
CAREY K.
MOREWEDGE

34. Mine
Possession
& Identity

36. Reason #3:
Loss Aversion

37. Why Is It So Difficult to Sell in a Market Decline?
According to Brafman and Brafman, people go to great lengths to avoid
perceived losses.
People tend to succumb to their will to recover what once was.
We’ll spend whatever it takes not to lose, be it time, money, or emotional
resources.

38. Market Cycle Psychology
Time
Value
Disbelief: this market’s
not coming back
Hope: well, maybe.
Buy In: this might
be the start of
something good.
Ecstatic: I love investing.
I’m never selling.
Time to double down.

40. Market Cycle Psychology
Time
Value
Complacency: Just a cool
off period. The market will
pick up again.
Worry: What’s going on here?
Denial: My properties are
good ones. The values
will come back.
Capitulation: What happened?
How could the government just stand by ?

42. Market Cycle Psychology
Time
Value
Ecstatic: I love investing.
I’m never selling.
Time to double down.
Cost: How much will it cost to ride the dip
and is it worth the wait?

43. Reason #4:
Self Reliance
Time Traps

44. Self Reliance - 4 Time Traps
SELF
EDUCATION
DO IT
YOURSELF
CONSULT
FRIENDS
HIRE A TRADITIONAL
BROKER

45. Time Trap #1: Self Education
SELF EDUCATION
Any search on Google can turn up free data, blogs, market reports, and opinions on what’s
happening in the market.
A search of “commercial real estate trends” turns up 152,000,000 results on Google.
A search of “commercial real estate trends Youtube” turns up on 310,000,000 results.

46. Time Trap #2: Consult Friends, Family, Advisors
CONSULTING FRIENDS, FAMILY, & NON COMMERCIAL
REAL ESTATEADVISORS
Most will not want to be the one to say sell. It’s easier to say no and risk being wrong
than to say yes, and risk not being right.
Any friend, family member, or trusted professional will give advice and opinions.
Most will not have the data that you have seen here.
Beware not to succumb to anecdote based advice, like “My friend made a killing in real estate.
You should hold on. It will come back.”

47. Time Trap #3: Do if Yourself
DO IT YOURSELF
Anyone can post a property for sale on Loopnet where 500,000 listings are available with
$240B in property for sale.
Loopnet is known by commercial real estate brokers as a poor quality lead source.
Loopnet may be a marketplace, but buyer interest there still wanes in a down market.

48. According to Google Trends - Loopnet Interest 2004-2010
Hope
Buy In
Ecstatic
Complacency
Worry
Denial
Capitulation

49. Time Trap #4: Hire a Traditional Broker
HIRE A TRADITIONAL BROKER
According the National Association of Realtors, there are about 2,000,000 active real estate
licensees in the United States. 1 in 164 people in the USA has a real estate license.
Most rely on the 3 P’s.
Put the property on the market, i.e. Loopnet.
Post a for sale sign out front.
Pray that someone shows up to buy it.

50. 74% belong to Loopnet.
12% focus on investment sales.
59% of traditional brokers have been in business for 26 years or more
with an average age of 60.
$4M is the median annual transaction volume from commercial real
estate activities - in our market, this is 1 deal.
According to the NAR Commercial Member Profile Report in 2017

51. Very

52. Very
Few

53. RESOURCESVery
Few

54. Have the
Expertise
R
F

55. Havethe
Expertise
TO ENSURE
R
F

56. The

57. The
Successful
Sale

58. To the Right Buyer

59. With the Right Buyer
at the Right Time.

62. 88.9%

63. 88.9%
of our recent sales
closed on-time and
at our client’s accepted
offer price.

64. That’s Because We

65. That’s Because We

66. That’s Because We
Deliver Engaged Buyers Who Close

67. That’s Because We
Deliver Engaged Buyers Who Close

68. That’s Because We
Deliver Engaged Buyers Who Close
Guarantee Experience & Knowledge

69. That’s Because We
Deliver Engaged Buyers Who Close
Guarantee Experience & Knowledge
Outrank Our Competitors by Average
Sales Transactions per Broker

70. That’s Because We
Deliver Engaged Buyers Who Close
Guarantee Experience & Knowledge
Outrank Our Competitors by Average
Sales Transactions per Broker

71. MANSARD
SVN Parsons
Hunneman
Colliers
CBRE
Newmark
JLL
Outrank Our Competitors by Average
Sales Transactions per Broker

72. Some Recent Sales Results Include
SOLD
$6,365,260 $5,500,000 $4,600,000
SOLDSOLD

73. What People Are Saying about MANSARD

74. Schedule a Conversation with MANSARD Today
Call
Curious how we can help you successfully sell your
commercial real estate?
(617) 674-2043