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Ranking Buildings: Fantasy Football Style

A, B, C, D -  this is the traditional way buildings are classed.  What does it all mean? Sure, there some guidelines that are vague. Sometimes people say a building is Class A when really it is Class B. I say we come up with a more aggressive way to rank buildings. I am an avid Fantasy Football player and have been doing it for years. When I’m drafting my team, there are certain criteria I consider for each player. These methods can be used to rank buildings.  

Return on investment (ROI) – In fantasy, the return on investment is deciding what round to draft someone and having them perform to that draft value. For buildings, the return on investment is simple; what I paid vs. what I make on it or what I can potentially sell it for.

Prone to Injury – If a player is prone to injuries, I tend to stay away from them. For buildings, I relate vacancy to injury. Buildings should be judged on their three-year vacancy rate. If a building consistently has vacancy, there has to be some reason why.

Quality of Team – A player is only as good as the team he is on. If a team struggles on offense, than that star running back will usually struggle.  When I think about the concept of a team for a building, I think about the quality of the existing tenants in that building. It seems like strong tenants flock together in good buildings. If there is a lesser quality tenant, others may not want to join the mix.

Demand – Your draft is sometimes dictated by demand. If there isn’t a plethora of quality running backs, naturally, you will try to draft one first.  Buildings should also be ranked on demand. If there isn’t a lot of ‘like space’ available, the building should get a higher ranking.

Price – How much are you willing to pay for that top quality pick? If you reach for someone above their draft value, will it pan out? For buildings, price doesn’t always equal quality of the space. There are other factors that drive cost of space, such as location or building amenities. Are you willing to reach for an overpriced building? If a building is priced too high, it’s ranking should be lowered.

Surroundings – It’s important to understand the quality of the NFL division the player is in when drafting for fantasy. If a running back is in a division with weak defenses, they will play those weak defenses twice in the year, thus improving their draft rank. The surroundings of a building should also be considered. A trophy building placed between two tear-downs should be worth less.

Location – About mid-season, you start to think about where a player plays. Weather can be a huge factor in a player’s performance. Rain, snow, playing in a dome or on turf can all be factors when deciding what players to start. Obviously, in commercial real estate, location should be a huge factor in ranking buildings. Proximity to highways, public transportation, and surrounding amenities should all be considered in ranking buildings.

Owner/Coach – A new coach can affect a player in fantasy. The new coach may have a different style that doesn’t fit with the player’s skills and they may be underutilized. Who owns a building should also be considered when ranking buildings. How much will they upkeep the building? Do they have the proper budget for improvements? How do they treat tenants? Also, who manages the property should be considered. An NFL owner can be the smartest person in the world, but a poor coach can drive the team into a losing season. If the property manager isn’t doing their job properly, it doesn’t matter who the owner is.

Therefore, in my opinion, the new proposed ranking system should be:

  1. Return of investment
  2. Three Year Vacancy Rate
  3. Quality of Existing Tenants
  4. Like Space Available
  5. Value of the Building
  6. Surrounding Buildings
  7. Location
  8. Owner/Property Manager

By John Boyer, Director of Marketing, Coldwell Banker Commercial Affiliates