I just wanted to get some feedback from the commercial real estate veterans out there. I currently manage a commercial real estate valuation firm with a Certified General Appraiser that has over a dozen years of experience doing real estate appraisals in countless cities, spread across numerous industries. Casinos, timber land, office buildings, retail, international airports... You name it, she's probably done it. However, most of this work was performed for a firm she didn't own, so she wants to break out on her own. I am currently helping her with that and procuring work while training in as an appraiser.
Which brings me to the point of the discussion. I recently met a contractor/salesman that works specifically in the fixture industry for commercial properties. They are a full-service, nationwide fixture firm that has done work for clients that dominate the retail, banking, restaurant, coffee shop, etc. industries. I'll avoid mentioning any specific companies in order to maintain confidentiality. They are big-time players, however, that typically have numerous brick and mortar locations in most major cities across the US.
Can anybody confirm or deny if there is a demand for a full-package firm for commercial real estate owners like this? In this case, "full-package" would include everything, start to finish, for improving or updating commercial real estate properties... From an in-person consultation regarding the specificities of the work needed to be performed; custom-fabricated or sourced fixtures ranging from lamps and chandeliers to countertops/flooring and murals; a full design proposal; contractor services; shipping and installation of the fixtures; and complete with two commercial appraisals. One as-is (before construction/value-add) and one after improvements are completed. Of course, the commercial appraisals would be completely impartial and maintain the highest ethical standards. As such, the senior appraiser wouldn't be involved in the rest of the process at all.
I've been doing some research and it doesn't seem like there are many firms out there that offer these services, let alone a start-to-finish value-add system like this that I am interested in potentially moving forward with. It'd change the dynamics of both of our companies quite a bit... Thoughts?
Thanks in advance!
Sure, anytime you can provide combined services for logical complementary products there is demand. Your success will largely depend on how you run the business, not whether the industry can support a "new" product.
@Ronald Rohde Thank you for your feedback! I had the same thought-process as you and am happy to hear that you generally agree that there is some benefit to combined services.
I have been working with commerical lenders, so I have some experience with commercial real estate, but it's usually at the 'front end' of the transaction and almost always regards a purchase. After that, the investor moves along and we lose touch. So I simply don't know how sought-after these types of services are, especially since many commercial property owners will 'rehab' a property after owning it for a while or entirely revamp their brand/image at various stages of their investment... Which is something that I don't often get to see after the sale takes place.
Are you a commercial investor?
I am, but probably not to the level you need to want to purchase turnkey units.