Recently an entrepreneur signed a lease on a new, much larger office and was surprised to learn that the media knew about the deal. Now, the media didn’t learn about the deal the following week or the following day. No, the media was leaked the deal the same day the ink dried. Crazy, right? Why is the commercial real estate industry so eager to share info with the media?
Answer: commercial real estate brokers and the media help each other. The media wants breaking news and compelling stories. Commercial real estate brokers are one of the first people to know if a company is expanding, shrinking, or relocating. Leasing agents at buildings interact with a number of businesses as they evaluate lease options and most don’t have a non-disclosure agreement in place. When an entrepreneur is about to sell his or her company, they have to get the owner of their lease to agree to assign the lease to the new acquirer, and now a commercial real estate broker knows a deal is about to go down and passes it on to the media.
In turn, the media shares information back to the commercial real estate brokers for the same reasons. Brokers want to know about potential deals, especially if they can get a head-start on chasing down a new prospect before the news breaks to the public. Brokers make money when a deal gets done. No deals, no money.
Entrepreneurs would do well to understand the relationship between the commercial real estate industry and the media, especially as their business grows and goes through changes that involve office space.
What else? What are some more thoughts on the relationship between commercial real estate and the media?