Quantifying CRE brokers
How useful would any of the following be to you as an investor in commercial real estate? Please be specific about which (if any) would be more useful and why. Would you contribute this information if your privacy was protected?
- Sell-side broker fees for confirmed trades of like assets (displayed as bps (with any relevant context such as flat fee) without disclosure of the specific deal or pricing)
- Composite delta between broker guidance and closed pricing for like assets and/or recent trades (displayed as a % without disclosure of the specific deals)
- Composite delta between broker OM cash flows and your underwriting for like assets (possibly displayed as a % or a time series line fit; this would only be visible to you based on you legally obtaining OMs and underwriting deals)
- Is there anything else that would be more useful?
Attribution could scope to the individual brokerage team (or deal lead(s)) but also be displayable in the aggregate against the companies (e.g., CBRE, C&W, JLL, etc.) if useful. Exact derivation of some of the above is TBD and I'm open to feedback.
I'm genuinely curious about this because we used to complain internally about how much other shops juked their numbers in pitch situations (and I'm sure we did the same). These seem like reasonable things to want to know as a seller or buyer (or borrower), but I could be failing to give proper weight to certain things.
Thanks for your input.
Disclosures: - I spent ~7 years on the brokerage side. Learned a ton and am grateful for the experience. - I'm building a product that could facilitate this in a privacy-protective way (https://towerhunt.com).
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