Agent Development, new real estate concept

When I first got into commercial real estate, I noticed a number of developers were also 3PL logistics firms. In those days, they were called bonded warehouse companies and usually were local or regional. A little investigation turned up that these developers were first warehouse companies and I soon learned they developed industrial buildings for their warehouse business and then sold them to investors under a long term lease of usually 10 years. So, I learned early real estate development and an operating company could make some serious money not only on the warehouse business but from developing their own buildings. My next question was, why doesn't a firm complete this tranaction for those firms who do not have the skill sets to develop property. Most smaller and even larger firms simply make a decision to own or lease and never consider other options such a developing the property and completing a sale/leaseback. Developers and design/build contractors are there to create properties for users but they do this for the profits generated from the lease. My firm created the idea of agent development, that is where development skills were brought together to serve the user or tenant of the property rather than under the traditional Landlord/tenant relationship. There are no commissions or fees from the Client. Compensation is negotiated on a shared profit basis.

Please add your comments on this new concept.

Rodger M. West, SIOR, BCCR, SLCR


Rodger West