Conrad Sarreal’s Post

It's crazy that a vibrant Walgreens in a top 3 market in 2018 can look like this just five years later. I really hope a city as interesting and unique as San Francisco can bounce back from this.

When I started in 2015, closing deals wasn't necessarily a walk in the park, but they rarely fell apart. Pre-COVID and before the rate hikes of 2022, less than 10% of my deals blew up. Yes, this success was partially due to a rigorous buyer qualifying process and my natural inclination towards problem-solving. However, from mid-2022 to today, I've faced the most puzzling buyer requests and situations in escrow—some that I hadn't even encountered in roughly 160 transactions. And yes, I know that with more experience, new challenges will always arise, but I’ve pinpointed a primary cause: supply and demand. 2015 to mid-2022, the market operated closer equilibrium in my opinion. There were fewer than 10 identical tenants available simultaneously, often fewer than five (excluding DG and FD). When repping buyers, only a dozen or fewer deals fit their criteria at any given time, leaving little room for negotiation. Today, buyers have plenty of viable alternative deals at their disposal. This abundance shifts the power dynamic, allowing buyers to demand what they want or walk away, regardless of logic. It's more about how they feel about the deal and terms on the table. In this environment, it's crucial to: - Monitor the market more closely than ever. - Avoid overpricing if there's a strong desire to transact. - Most importantly, be creative and open-minded in resolving issues I still have a relatively small sample size, but I've seen a couple cycles over the past decade now, and I see glimmers of the light at the end of the tunnel. The stretch of singles and doubles may be ending and the gold rush follows. Keep hanging on and be willing to be agile and adaptive!

Just ran a quick Costar search to see how many repeat multi-tenant retail buyers there have been in the past 24 months, focusing on properties at or below a 6.50% cap rate, west of Texas, and in the $4M to $10M range. Surprisingly, there are only THREE buyers who have purchased more than one center. This makes sense given the overall hesitancy to deploy cash and interest rates higher than 6.50%. However, there were still around 300 sales, meaning 99% were one-off buyers...not much different than single-tenant retail.

Call me a nerd, but one of the most fulfilling tasks on the weekend is completing a DIY project while listening to a podcast that’s spitting out absolute facts about life or business. Benefits: 1. Adding value to your house 2. Chipping away at one of the 1,000 projects your wife thought would be great for the house. 3. Learning something you didn’t know yesterday. All upside baby!!

🚀 🚀 JUST CLOSED 🚀🚀 Don't be fooled by the name—it's another Goodyear success story! Jake Sandresky and I have held the largest market share for Goodyear sales in the country over the past few years. As Jake mentioned, we leveraged our strong relationship with their broker representatives to negotiate an early extension, adding six-figure value to our client's property. Furthermore, we outperformed the comparable sales for Goodyear properties with short-term leases, excluding those in California. ⏲ Facilitated a longer lease ☝ Closed with 1st buyer, one we procured at an in-person meeting. 🥇 9th Goodyear sale in last 24 months 📈 Beat the market, especially current one, on pricing Reach out to Jake Sandresky or myself for any needs regarding tire stores or auto repair shops.

I’m working my tail off and being cautious with big expenses in this market, but realizing that this trip was necessary. COVID and births have kept my wife and me from joining her family’s reunion in Michigan every June. This year, I couldn’t justify putting it off again. I initially planned the trip for her, but soon realized we all needed it. The girls have never been so immersed in nature, living as we do in an urban jungle. Seeing how much they love being out on the lake has been a proud dad moment. It hasn’t been all smooth sailing. Putting the girls to sleep in the same room with the sun still up and chaotic nap schedules has been challenging. But it’s a small price to pay for the fun and serenity (and endless darts, cornhole, and pool tournaments) we’ve enjoyed here. I’m on track to have the best year of my career, and this trip has been like getting the Starman halfway through the race in Mario Kart. Fired up to end the year strong!!

My guess is that the average commute time per workday is 1 hour. What is the average length of books on audible? 10 hours. 5 work days/week x 52 weeks = 260 days 260 days x 1 hour = 260 hours That means that if you listen to books only during your commute on workdays you could get through 26 BOOKS PER YEAR. That doesn’t include listening at night or on airplane rides. So rather than listening to “I Had Som Help” my Morgan Wallen for the 100th time, chew on that…that is a jam though.