Chris Sands, Founder and CEO, Sands Investment Group (SIG).
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In commercial real estate sales, a common philosophy is the “win-win or no deal” approach. This suggests that both parties in a transaction should aim for a mutually beneficial outcome or walk away from the deal altogether. This brings both parties’ needs into consideration while anticipating an agreement where both the client and the broker feel as though they’ve “won” a positive outcome.
Businesses have traditionally used approaches that lend themselves to a survival-of-the-fittest mindset, such as this win-win or no deal approach. In a dog-eat-dog market with limited supply and demand to make a deal, making that sale feels like a ruthless competition. Commercial real estate is often perceived as one such market, in which brokers are working to get a deal done at any cost and a transaction takes precedence over any external factors. This approach assumes that there are only two parties affected by the outcome: the broker and the client.
Instead, in the commercial real estate space, the concept of a win-win-win situation may work better. This brings in a third party: the broader, external community. Derived from John Mackey’s Conscious Leadership: Elevating Humanity Through Business, in which he describes the third win that introduces a positive community outcome, I’ve seen this third factor come back to a full-circle benefit for our clients.
By approaching each deal from a place of servant leadership, we’re able to create community and collaborate with experts in their markets to seek the best possible outcome for all parties involved. When this win-win-win approach is applied, there are two key ways commercial real estate can work to impact the community.
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Add Value
When the brokerage takes the time to ask how we can add value for the client, we’re positioned to identify areas of need and offer long-term advisory, whether it’s to buy, sell, reposition, refinance or maintain a property for their portfolio. This in turn gives the brokerage a net-positive result in creating long-term business and referral traffic, allowing us to continue to build new and existing relationships.
In my own firm, we’ve created an environment that empowers brokers to grow into the best versions of themselves, making ethical decisions for their clients and community and upholding their personal integrity. This has allowed us to continually find new ways to add value for clients.
Give Back
Another key to success in the commercial real estate sphere is to intentionally give back to our community, whether by financial means or by providing brokers with opportunities to give time through service projects. It’s crucial to consider our environmental footprint and the mark we’re leaving on a broader community scale, and giving back allows us to do just that. You get more back when you give — and there is so much more reward and fulfillment to be gained by giving back proceeds, time and talents in our surrounding communities.
Despite the Covid-19 pandemic, many commercial real estate brokerages were able to weather the storm. While deal production slowed and pipelines were down, the industry as a whole performed well. It’s important to be cognizant of what we stand for on the other side of these challenges, as well. What a great ripple effect it could be for all brokerages to invest their resources into starting a charitable arm and giving back to their communities, especially during challenging times.
At the end of the day, every decision made — every motive and every mindset — should be about more than yourself and your client. Ask what gives a better quality of life and what selfless considerations can be made within a deal for a greater positive impact. When you approach business deals with a win-win-win attitude, the impact can be felt throughout the community. This servant leadership mindset allows us to focus on being more interested in helping others than on being interesting, and the byproduct of these actions and mindset will allow us to grow our businesses and ourselves organically.
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