Do Clients Get Your Market Data First?

Early Warning, Please... If I'm a client of a national service provider, shouldn't that firm give me a heads-up before blasting their latest market survey to the media? That's the question that I raised in What Did My Broker Know? And When Did He/She Know It? (Jan 22, 2002). In response, some regional players like Robert Scullin at NAI Capital Commercial in Los Angeles, Mike Ohmes at United Properties in Minneapolis and Jeff Fredericks at Colliers International (San Jose) pointed out terrific reports on their markets released electronically to clients within two weeks of a quarter's end. But it's a lot harder for firms covering dozens of markets nationwide.

Here are some interesting comments sent to me by a consumer of national brokerage and management services (who requested anonymity). "From my experience, there is currently little consistency in reports from market to market, both in terms of format and integrity of data. What we get from [name deleted] in one market may be excellent and reliable, in another market scanty and suspect. ... I am also amused that, in spite of the data presented, the conclusions drawn are inconsistent with that data.

"No one seems to want to admit that rental growth does not occur until vacancies drop into the single digits, sometimes the 5-8% range. Somehow, when the economy picks up in 2003, rents are also supposed to immediately head up. History tells us otherwise, as landlords will take turns buying deals as long as there is a substantial overhang of space. Depending on the magnitude of the recovery, many markets could be looking at a three-year or more lag before rents pick up. I have yet to see anyone acknowledge that in print." ... Is he wrong?

--Peter Pike