ShareCarlos Fuentes, CCIM, CIPS, took the floor to talk about the facts of international life in the commercial real estate business. On a global scale, the market is active and laden with cash. Referencing NAR’s 2017 Commercial Real Estate International Business Trends report, Fuentes noted 22% of U.S. commercial members completed a lease agreement on behalf of an international client in 2016, with 20% of commercial practitioners closing on an international deal.
If that number seems surprisingly high, factor in this detail: according to Fuentes, global transactions also include recent immigrants who have lived in the US for less than 2 years.
How many of these deals used cash? A whopping 60%, says Fuentes – meaning this is one market segment that commonly moves faster than financing does and tends toward price discounts. Flexibility and efficiency are at a premium here.
No wonder, Fuentes pointed out, international investors have a whole raft of concerns other investors might not share. “Investment objectives, currency exchange rates, international tax implications, embassies, global trade expos,” are among the common touchstones.
How best to prepare for working this market? “Get NAR’s Certified International Property Specialist (CIPS) designation,” counseled Fuentes, promoting the education, networking, and marketing resources that go with it.
TIPS FOR BUILDING INTERNATIONAL CLIENTELE:
1. Global business starts locally, so know your markets
2. Respect your clients’ culture
3. Build your global real estate team with immigration attorneys, CPAs, translators, and a currency exchange.
4. Focus on clear, consistent communication with clients
Learn more at nar.realtor/cips