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Know When to Hold 'Em and When to Fold 'Em

ORLANDO—“If you need to get something sold at any price, properties will sell.”

By Jennifer LeClaire | jenniferleclaire | | Updated on May 22, 2016
“The growth isn't stopping, and we intend to help owners and landlords build upon it.” “The growth isn’t stopping, and we intend to help owners and landlords build upon it.”
ORLANDO— John Crossman , president of Crossman & Company , is pressing into commercial real estate opportunities in the Southeast. His firm recently opened a Miami office and is taking the region’s temperature . In the second part of our exclusive interview, we asked him about the challenges buyers and sellers are facing in today’s market. In the next installment, he will discuss hidden opportunities in the region. GlobeSt.com: What are the biggest challenges you see for investors looking to acquire assets? Crossman : The biggest challenge is obviously going to be competition. For core properties and core markets, there are a lot of buyers out there. So when investors are looking to put money out, it’s really understanding and creating a consistent deal flow. GlobeSt.com: What about for sellers? Crossman : If you have a core property, you’re not going to have a problem selling it. If you have a core property with a value-added component to it, you’re probably not going to have a problem. If you need to get something sold at any price, properties will sell. The challenge for sellers is that if it has some significant “hair” on it and you want to move it, you will take a hit on pricing, still in a lot of places, and you have to be ready for that. There is really no great example of that in the category of malls. You have fortress malls that are doing great and sell at a great price. Even if it is a B mall that has some problems, the pricing is going to be closer to a D mall than a fortress mall. And that’s because there is still a heavy discount for properties that are not fully fixed. So I tell sellers, you have stick to your priorities. Either you’re gonna fix it or hold it, and not waiver in between those two strategies.  

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