1. Thriving not Surviving
By: Thomas Vincent, CCIM | Managing Director
Sperry Van Ness | Rolling Meadows, IL
I don’t know if your observations have been the same as mine, but I’ve regrettably witnessed broker after
broker giving in to this very difficult commercial real estate market. I have watched them adopt a bunker
mentality and almost unconsciously slip into survival mode. Many brokers have come to feel comfort in
the poor market because it makes them feel better about their poor performance. It’s almost as if it’s a
foregone conclusion that this market downturn is going to be protracted, and that the only way to survive
is to do just that - survive. My question is this - when has settling for survival ever been a solid business
practice? When has status quo ever been the objective? And what kind of message does an advisor
send to their clients if his or her mentality is to break even? I want you, the investor, the property owner to
know that you do not have to settle for a commercial real estate practitioner with this frame of mind. Don’t
confuse surviving with thriving. There are professionals whose goal is to thrive…and they are
succeeding.
I will start by saying that I do not deny that the commercial real estate markets are and have been tough.
We have been drudging through these market conditions for over two years. It’s only a natural reaction to
want to cut back and try to wait out the storm. Needless to say, some people need to cut back. But the
issue is long-term. Surviving today doesn’t ensure your prosperity tomorrow. Even though we are in a
tough market, practitioners need to be strategic with their capital, their operating strategy, and their
clients. There must be a plan for what happens next – what happens AFTER the market starts to recover.
Many commercial real estate brokers are doing this by having a game plan, and by knowing which
markets will emerge from the ashes first, which property types will be the most profitable, and which
banks are going to be there ready to lend. These professionals are in stark contrast to those who are
having low sales volume now and are simply calling it quits.
The point of discussing this is for the benefit of those seeking to invest in commercial real estate.
Investors need to know that there are professionals who have the knowledge of where to invest, what to
invest in, and where to get funding. If you come across a broker who advises you to “wait for the bottom”
by sitting on the sidelines and holding on to your capital…GET A NEW BROKER. There are properties all
across the country right now that if acquired properly, will produce significant returns. Take, for example,
a recent article in CIRE Magazine. They are listing 58 cities that have promising returns in the next 3
YEARS. Opportunities are going to be missed if one waits for a complete rebound before returning to the
market. Moreover, those who wait are going to be at a distinct competitive disadvantage to those who
invested during the down market.
One question that often comes up when investing during a down market is, “where can I receive
funding?” This is a legitimate concern since many, if not most, of the national banks have no intention of
being free and easy with their lending practices right now. That said, some of the national lenders are
starting to lend again. And where there is a void in funding by the major lenders, regional and community

2. banks are beginning to fill in the gap. The smaller institutions are still able to lend on larger deals while
managing risk with participations and syndicated loans.
Syndicated loans are not your only bet either. Many are finding funding in places other than banks.
Government sponsored enterprises, insurance companies, REITS, and private lenders are all stepping
up to fill the voids that national banks have left. These lenders are also here to stay. Once the market
recovers, and many predict that commercial real estate sales will grow in the near future, these lenders
will still be here, ready to provide funding.
So getting into the game and securing financing now is more important than ever. Once the market is
looking like it will rebound, investors are going to come out of the woodworks, trying to secure as much
funding as possible. Lenders are only going to be more cautious moving forward and at least in the near
term will most likely not lend as much as they have in the past. If an investor starts now and shows that
they can be successful in this market, they will be miles ahead of those who are just starting to get back
into things once the market rebounds.
What does all of this mean to you? If you are an investor, it means you must take the time to find the right
commercial real estate advisor who is market savvy and has demonstrated expertise is his or her market
and asset class. The thriving investors today are the ones who have found thriving brokers. The brokers
who are creative, strategically minded, informed, and forward moving despite the market conditions.
Property owners who are need of advice will also benefit from the services of a professional advisor.
When the time comes to buy, sell, restructure, refinance, or move locations, a qualified advisor is going to
make the process go as smooth as possible.

3. About the Author
Tom Vincent, CCIM serves as a Managing Director for Sperry Van Ness, specializing in the sale of shopping
centers and net leased properties nationwide. He also sells industrial, office and multifamily properties in Chicago
and the Midwest. With over 35 years of experience, Vincent has secured over 300 transactions with a sales volume
valued at over $360 million in the last nine years including numerous 1031 exchange transactions.
Prior to joining Sperry Van Ness, Vincent operated Sentinel Realty Advisors, Inc. for more than five years. He
owned and operated Fidelity Mortgage & Investment Corp. for over 20 years specializing in brokerage of
commercial loans for all property types. He served as president and COO of Union Realty Mortgage Company and
Senior Vice President HIC of Florida, a subsidiary of Chase Manhattan Bank where he was instrumental in
liquidating a $250MM portfolio of distressed assets.
Vincent earned the CCIM designation in 1997 and is the past president (2004) of the Illinois Chapter of CCIM and a
member of the International Council of Shopping Centers. Since 1991 Vincent has served as chairman of the Plan
Commission for the City of Rolling Meadows, Illinois.
He earned his bachelor's degree in banking and finance from the University of North Texas. Pam Vincent, CPA
assists in the operation.
Contact:
Phone: 847.963.1031
Email: vincentt@svn.com
Web: www.svnart.com
Twitter: @tvincentccim