If 40% of business sales involve commercial real estate, why are more advisors not well versed in this area? As financial advisors, you’re entrusted with guiding your clients through the complexities of wealth management. Yet, in your pursuit of optimizing traditional investment avenues, one crucial aspect often remains overlooked: commercial real estate. This tangible asset class holds immense potential to bolster portfolios and unlock hidden value for clients.
Whether navigating business exit strategies, facilitating family wealth transitions, or optimizing investment portfolios, commercial real estate represents an underutilized avenue for financial advisors to both attract new clientele and fortify existing relationships. By embracing commercial real estate expertise, financial advisors can position themselves as comprehensive wealth managers and drive success in their practice
Why Commercial Real Estate Matters
Understanding commercial real estate is not merely an option but a necessity for financial advisors seeking to provide comprehensive financial solutions. How many of your competitors are actively incorporating commercial real estate into their service offerings? Chances are, very few. Clients are more likely to remain loyal to advisors who demonstrate a comprehensive understanding of their financial landscape, including both traditional investments and tangible assets like commercial real estate.
Let’s consider the myriad scenarios in which your clients require guidance about commercial real estate:
- Business Sales and Exit Planning
- Many clients are business owners with real estate holdings. When selling their business, they face critical decisions regarding the fate of the associated property. Should they sell it alongside the business, lease it to the buyer, or explore alternative options like a 1031 exchange? Financial advisors must navigate these scenarios adeptly to maximize client value.
- Transitioning Family Wealth
- Family transitions often involve the transfer of commercial real estate assets. Whether passing down ownership to the next generation or liquidating assets, advisors must facilitate smooth transitions while optimizing financial outcomes.
- Wealth Diversification and Risk Mitigation
- Commercial real estate offers diversification benefits and serves as a hedge against market volatility. Advisors must educate clients on the strategic advantages of allocating capital to this asset class to achieve long-term financial goals.
Become a Well-Rounded Expert
Think about it from your clients' perspective. They trust you to guide them through the complexities of financial planning, seeking solutions that align with their long-term goals. Yet, when it comes to their commercial real estate assets, they may find themselves lacking the specialized knowledge and support they need.
Financial advisors who are well equipped in commercial real estate advisory benefit in the following ways:
- Competitive Differentiation - advisors distinguish themselves from competitors and position themselves as comprehensive wealth managers capable of addressing all client needs.
- Client Retention and Loyalty - providing guidance on commercial real estate fosters deeper client relationships and instills trust. Clients are more likely to remain loyal and entrust advisors with their entire financial portfolio
- Business Growth Opportunities - Expanded service offerings attract new clients and drive business growth. Advisors who demonstrate proficiency in commercial real estate capture a larger market share and increase revenue streams.
Our Solutions For Financial Advisors
From industrial and office to retail, multi-family, and self-storage properties, we offer in-depth insights into the unique characteristics, opportunities, and challenges associated with each property type.
Our team leverages extensive market research and industry expertise to educate clients on the varying demographic and geographic trends shaping commercial real estate markets nationwide. By empowering clients with a nuanced understanding of the pros and cons of each property type, including factors such as management requirements, associated risks, and potential returns, we enable them to make informed investment decisions tailored to their specific circumstances and objectives.
Whether clients are seeking stable income streams, long-term appreciation, or portfolio diversification, our educational resources equip them with the knowledge and insights needed to structure their commercial real estate portfolios strategically.
Our team at CBRE offers a number of tailored solutions to help support financial advisors in their practice.
Business Exit Planning:
By conducting comprehensive valuations and strategic analyses, we help clients maximize the value of their real estate assets in conjunction with their business sale. Whether advising on the optimal timing for divesting real estate or negotiating favorable lease terms with the buyer, our guidance ensures that clients achieve optimal financial outcomes while seamlessly transitioning out of their business endeavors.
For clients seeking to defer capital gains taxes and reinvest proceeds from property sales into like-kind investments, our team specializes in facilitating 1031 exchanges. From identifying suitable replacement properties to navigating complex transaction processes, we guide clients through every step of the exchange, ensuring compliance with IRS regulations and maximizing investment returns.
Through our disruptive technology platform, we provide access to a wide range of nationwide investment properties, enabling clients to identify lucrative opportunities across various asset classes and geographical markets. Additionally, our in-depth financial underwriting and risk assessment processes ensure that clients make informed investment decisions aligned with their financial objectives
Family Wealth Transitions:
During periods of family wealth transitions, such as generational transfers or estate planning, commercial real estate often plays a pivotal role. Our team assists clients in navigating these complex transitions by providing strategic guidance on real estate asset management. Whether facilitating property transfers to heirs, optimizing lease agreements, constructing portfolios adequate for estate planning or advising on tax-efficient strategies, we empower clients to preserve and grow their family wealth for future generations.
Partner Buyouts Using Real Estate:
In scenarios where clients opt to buy out business partners using real estate assets, our expertise in commercial real estate transactions proves invaluable. We assist clients in structuring buyout agreements, conducting property valuations, and negotiating favorable terms to facilitate smooth partner buyouts. By leveraging our strategic insights and transactional expertise, we enable clients to navigate complex ownership transitions while preserving the value of their real estate investments.
