How One Orlando Broker Learned to Adapt in Difficult Cycles

Paul Hoffman has had to twist and turn during his commercial real estate career.

ORLANDO— Paul Hoffman has had to twist and turn during his commercial real estate career. The Coldwell Banker NRT broker has had diverse experiences that serve him well in booms and bust. GlobeSt.com caught up with Hoffman to discuss what he’s learned in the downtimes in part one of this exclusive interview. In the next installment, he will discuss the opportunities he sees in Central Florida commercial real estate . GlobeSt.com: How did you get your start in commercial real estate?  Hoffman: I was fortunate to begin my career with a real estate instructor that ran a boutique brokerage and property management firm in Downtown Orlando.  He was a hard-working, numbers savvy mentor who taught me the ropes and brought me up fast. During my first year in commercial real estate , I met an attorney who specialized in government law and from that relationship I began representing a thriving, forward-thinking local municipality—and that continues today through my work as a consultant and broker. That involvement taught me the importance of planning and growth management. GlobeSt.com: What have been some of the key turning points in your career?  Hoffman: The Tax Reform Act of 1986 taught me to accept change and adapt as needed. Some aspects of the Act contributed to the savings and loan crisis, which led me to begin working with the RTC (Resolution Trust Corporation) and area S&L’s doing other real estate owned (OREO) dispositions. When the market strengthened, investors that had bought property at the bottom began to take profits. I then migrated to the burgeoning Orlando-Kissimmee tourist market and business thrived. GlobeSt.com: What was the biggest challenge you’ve had to navigate in the commercial real estate industry?  Hoffman: The 2008 Great Recession was a defining moment in my career and in the commercial real estate industry. Looking back, 2005 was a peak time in Orlando area commercial real estate . That year, I received the Central Florida Real Estate Society’s “Deal of the Year” award as the selling agent on the $40 million sale of the former Splendid China Theme Park with adjoining land and was also site selector for a national restaurant chain with multiple deals in the stack. In 2006, developers began to pull back, and later in 2007 my national restaurant chain jettisoned its entire deal stack. In 2008, the reset button was pushed. Values as we knew ceased to exist: I recall that “half of half” became the buyer’s rule of thumb. GlobeSt.com: How did you get through that challenge?  Hoffman: I accepted this change, adapted quickly and transitioned to work as an agent for several banks and a credit union disposing of commercial OREO properties.