Need Advice on off market retail center sale.
Owner and I have worked together to put a few deals together and he has mentioned he’s ready to sell his large retail center in the busiest retail corridor of the market. What he doesn’t know is a 250,000 sf Scheels has committed to opening directly across the street. In most Malls Scheels has gone into they have crushed it and turned the market into a regional draw and increased traffic to that entrance of the mall by 90%... which is directly across the street. I see this could add tremendous value to his center as it already has below market rents and 10% vacancy. Do I let him know or use it as leverage to try and sell to the next buyer?
You should definitely tell him, it may not change his decision but it would be silly not to share that.
I think you should probably mention it. Then discuss your repeat clients best interest because that would also be your best interest. You’re his guy, show him why. Sure it might suck if he changes his mind but I don’t know maybe better opportunities come out of it
Also completely depends why this person wants out. Do you think they’re completely fatigued of this property? Or are they pretty engaged and will chase a long term play? Or do they just want to get out of the retail game co
100% tell him and do it yesterday. The risk you run of him finding out on his own is too high. If he gets the information from someone else, at best you look like you aren't plugged in to the local market and at worst he realizes he can't trust you to look out for his best interests. Either scenario likely gets you replaced and you end the relationship with a repeat client.
May be controversial but I would say this is a reason why people say they can’t trust brokers. You mentioned you’ve worked on a few deals together and you’ve made a lot in commission off those. He’s been loyal to you and given you a chance to improve your career (there are a million other brokers out there) and now when he’s trusting to sell what’s potentially a majority of his NW/if not a significant amount of money for him after all the risk he’s taking with loans/leasing the property your first thought isn’t to be completely honest and open with him it’s instead to be selfish and think of your commission.
Definitely agree with others to tell him immediately, it will help you and him but really should’ve been your first thought.
Thanks for the advice. I told him first thing yesterday morning when we spoke. He has never given me an exclusive listing or allowed me to market anything as my listing. I've brought him a few tenants to fill up his retail center, its not like he wouldve turned down a different broker bringing him a deal. He has just had a pleasant experience working with us and let us know he would be willing to sell if a buyer came along. The information may or may not change his mind on wanting to sell the property. Either way, you all are right, it is not worth the risk of tarnishing the relationship.
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