"Why would I hire you to list my property if you just moved to Reading, PA?", was the question that my potential client asked me today. It's a fair question, especially given the fact that many brokers advertise themselves at the 'local area expert'. My answer was quite simple, "it is true that all real estate is local, but capital is global!" This answer initially confused my potential client. He wanted to sell his commercial real estate, he was not trying to finance anything. I realized that this was going to be a long conversation.
If you are selling a home to somone who is going to live there, it is important to know a lot about the area. What school district is it? How is the public transportation? What is there to do in the area? If you are selling a factory to a business who is going to operate in it, you also need to know a lot about the area. What does the labor pool look like? Is the local government pro business? How are the local distribution networks? These are all important questions, and at the moment, I might not be as qualified to answer these questions as the next agent or broker.
BUT, when you are trying to sell commercial real estate in Reading, PA as an investment, the questions are different. You see investments are purchased for a return on capital. I recently moved to Reading, PA, because I identified the area as one where investors get a tremendous return on their invested capital. True commercial real estate investors look all over the country, and sometime all over the world for markets with great returns. Their capital doesn't care what the weather is like in Reading, PA. It cares about the return, and it flows easily. Now obviously there are many local economic factors that lead to these returns, but these factors are easily researched. They do not require a lifetime of living in an area.
This is why I have a huge advantage over a lifelond 'local area exper' when it comes to selling commercial real estate in Reading, PA. I have done business and have contacts all over the US. I regularly speak with investors from Texas and Florida, where at the moment, cap rates are so low that savy investors are sitting on the sidelines. These investors are looking elsewhere, and I intend to import their capital to Reading, PA.
If you are intersted in selling your commercial real estate to the global marketplace, give me a call today. Also, if you happen to be an investor in another part of the world, and want access to the tremendous opportunities in downtown Reading, PA, give me a call today.
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