s recovering from downturns.

3. Change Asset Class Focus: Rather than chasing multifamily and retail properties look for opportunities in office, hospitality and industrial asset classes.

4. Stay Away from Traditional Trophy Assets: If you must buy big look for opportunistic plays that have higher vacancies, lease roll-over risks, or financing issues. An asset doesn't need to be located in New York, Chicago or Los

There is little doubt that we are currently experiencing one of the most heated seller's markets in recent history. Today's investment sales market has been reduced to an e-bay like environment where retail brokerage houses simply put an asset up for auction and wait for the buyers to circle like hungry sharks.

Many will point to the increased flow of funds in the commercial capital markets creating a demand-side frenzy that is causing a compression in cap rates and escalating prices to all time highs as justifying current market tactics. However while there is an element of truth surrounding the logic contained in the previous sentence, I believe it is simply easier for many buyers to blame the market and follow the crowd rather than adapt their acquisitions plan. This is evidenced by the fact that many institutional buyers like REIT's, TIC syndicators or foreign investors seem content to participate in the madness rather than seek alternate investment strategies. The need to place funds seems to be taking precedence over making good investment decisions for many in today's market.

The real opportunities in today's market are not found by following the herd mentality but can be found in the application of any of the following strategies:

1. "Off-market" transactions: Seek out assets that are not listed by retail brokerage firms. Hire an investment bank to approach principal owners on a direct basis negotiating with them on assets that are not publicly for sale.

2. Change Market Focus: Focus your acquisition strategies on secondary and tertiary markets where there will be less competition for assets. Additionally stay out of the hot markets and look toward markets recovering from downturns.

3. Change Asset Class Focus: Rather than chasing multifamily and retail properties look for opportunities in office, hospitality and industrial asset classes.

4. Stay Away from Traditional Trophy Assets: If you must buy big look for opportunistic plays that have higher vacancies, lease roll-over risks, or financing issues. An asset doesn't need to be located in New York, Chicago or Los

that is causing a compression in cap rates and escalating prices to all time highs as justifying current market tactics. However while there is an element of truth surrounding the logic contained in the previous sentence, I believe it is simply easier for many buyers to blame the market and follow the crowd rather than adapt their acquisitions plan. This is evidenced by the fact that many institutional buyers like REIT's, TIC syndicators or foreign investors seem content to participate in the madness rather than seek alternate investment strategies. The need to place funds seems to be taking precedence over making good investment decisions for many in today's market.

The real opportunities in today's market are not found by following the herd mentality but can be found in the application of any of the following strategies:

1. "Off-market" transactions: Seek out assets that are not listed by retail brokerage firms. Hire an investment bank to approach principal owners on a direct basis negotiating with them on assets that are not publicly for sale.

2. Change Market Focus: Focus your acquisition strategies on secondary and tertiary markets where there will be less competition for assets. Additionally stay out of the hot markets and look toward markets recovering from downturns.

3. Change Asset Class Focus: Rather than chasing multifamily and retail properties look for opportunities in office, hospitality and industrial asset classes.

4. Stay Away from Traditional Trophy Assets: If you must buy big look for opportunistic plays that have higher vacancies, lease roll-over risks, or financing issues. An asset doesn't need to be located in New York, Chicago or Los

C syndicators or foreign investors seem content to participate in the madness rather than seek alternate investment strategies. The need to place funds seems to be taking precedence over making good investment decisions for many in today's market.

The real opportunities in today's market are not found by following the herd mentality but can be found in the application of any of the following strategies:

1. "Off-market" transactions: Seek out assets that are not listed by retail brokerage firms. Hire an investment bank to approach principal owners on a direct basis negotiating with them on assets that are not publicly for sale.

2. Change Market Focus: Focus your acquisition strategies on secondary and tertiary markets where there will be less competition for assets. Additionally stay out of the hot markets and look toward markets recovering from downturns.

3. Change Asset Class Focus: Rather than chasing multifamily and retail properties look for opportunities in office, hospitality and industrial asset classes.

4. Stay Away from Traditional Trophy Assets: If you must buy big look for opportunistic plays that have higher vacancies, lease roll-over risks, or financing issues. An asset doesn't need to be located in New York, Chicago or Los

rket" transactions: Seek out assets that are not listed by retail brokerage firms. Hire an investment bank to approach principal owners on a direct basis negotiating with them on assets that are not publicly for sale.

2. Change Market Focus: Focus your acquisition strategies on secondary and tertiary markets where there will be less competition for assets. Additionally stay out of the hot markets and look toward markets recovering from downturns.

3. Change Asset Class Focus: Rather than chasing multifamily and retail properties look for opportunities in office, hospitality and industrial asset classes.

4. Stay Away from Traditional Trophy Assets: If you must buy big look for opportunistic plays that have higher vacancies, lease roll-over risks, or financing issues. An asset doesn't need to be located in New York, Chicago or Los

s recovering from downturns.

3. Change Asset Class Focus: Rather than chasing multifamily and retail properties look for opportunities in office, hospitality and industrial asset classes.

4. Stay Away from Traditional Trophy Assets: If you must buy big look for opportunistic plays that have higher vacancies, lease roll-over risks, or financing issues. An asset doesn't need to be located in New York, Chicago or Los Angeles or be fully leased to constitute a trophy designation.

5. Look for Joint Venture or Recapitalization Opportunities: Many of the best opportunities in today's market are not found in out-right acquisitions. Explore joint ventures that will allow you to co-invest with existing owners of assets in a fashion that will allow them to free up trapped equity or fund new developments.

6. Change Your Acquisition Process: Traditional acquisition time frames that were competitive 12 months ago will leave you on the outside looking in with today's frothy market conditions. Be willing to make unsolicited offers, put up meaningful earnest money deposits and close quickly.

In summary, we are experiencing quite a competitive sellers market and the investment sales market is turning into more of an e-bay type auction than a business transaction. However, there are many real opportunities in today's market that can be found when you change the way you look at the investment sales market.

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