King Capital, a local commercial real estate firm, hired Jeannie Randolph as its vice president of business brokerage in 2023 to bridge the gap between a commercial real estate expert and a business broker. Her role involves conducting an in-depth analysis of the finances and assets of a business.
Albuquerque Business First talked with Randolph about what 2024 could entail.
Albuquerque Business First: What are the biggest trends going into 2024 for commercial real estate?
Jeannie Randolph: From a business brokerage standpoint, I still see lots of sellers who want to retire and get out. Financing is tightening, interest rates are much higher than in the commercial market, so the cost of money is very high. What we’ll have to see in 2024 is sellers will have to be willing to do seller financing and carry that note so buyers can get in at a reasonable amount. It is all about being open-minded to put a deal together so a seller can exit and retire and a buyer can come in and take over.
How has the Covid-19 pandemic changed the CRE landscape? Owners got smarter. They figured out how to run their businesses with less and do it more efficiently. Less employees, less costs. That goes right to the bottom line to make businesses more valuable. I have certainly seen in the last year from doing business evaluations, the value of businesses is going up because the owners have figured out how to streamline operations, and that has been just a side effect or result coming out of Covid. They had to do more with less.