Are you wanting to get into the real estate game but don't know any of the lingo? Parse through this plethora of lessons where you will learn the meaning and specific application of dozens of real estate terms taught by the incredibly successful Michael Burer.
Featured Coaching Excerpt - Notes & Transcript, Part 1
Efficiency: A measure of the capacity or effectiveness of space to produce the desired results with a minimum expenditure of time, money, energy, and materials.
Lesson Nugget: By establishing the most efficient workflow and office layout possible, you can determine how much space your business really needs.
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-All right Thrive nation, we are gathered here off the coast of-- just barely-- I mean we're almost in the water here at beautiful San Diego at the Hotel Del where you can smell the ocean sea breeze here. And we have chosen to talk with our main man Michael. There is no real estate topic too obscure Burer about the topic of efficiency in the context of real estate.
I'm going to read the definition, and he's going to provide you an ample example as to what it means as you get into the game of real estate. So here we go, efficiency, a measure of the capacity or effectiveness of space to produce the desired results with a minimum expenditure of time, money, energy, and materials. What does that mean?
-So basically, it means how does the space layout for your intended use? If you're an industrial building, a manufacturing plant, and you have these big machines, but the building has huge columns that come down and so you have to have the equipment spread out. That wouldn't be very efficient. Or in an office use, if the layout of the building is a triangle, something unusual, You can't make-- you can get less offices in that size space than you could if it was a rectangle. That would be less efficient in that scenario.
-How effective do you think most business owners are at being efficient with your list based leasing? I mean I see it all the time where I'll work with a small business, and they're paying $4,000 a month for a space. And you look at it, and it's empty here. Or it's not-- I mean it's like full in one area, but not utilized over here. And you're thinking there's got to have been a better space for you or whatever.
Do you feel like there's enough due diligence, or enough effort, put in to finding the most efficient space possible?
-Yeah. So for a tenant on the front end, really evaluating how much space do they really need, can they manage their workflow so that they can reduce the amount of square footage can result in a big enough-- big savings for them over the period of that least. Efficiency is a key factor in determining where to lease.
-As a CFO of a billion dollar real estate company, do you spend a lot of time thinking about the efficiency or looking at the efficiency of a property before you decide if that's the right one for you?
-Yeah. When we evaluate buying buildings, that's definitely something we consider. Our building, how efficient is it versus the competitive set?
-Have you ever thought about arranging your office in like a bunk bed style so that way you could be more efficient. Like, you could work up here. Then, the other guy were here.
-It's like a submarine.
-Like a submarine, yeah. But they are ideas I have. I stew on them. Now, I wanted to share this with. And if I don't give a little disclaimer to this, it might come across the wrong way. So I'm just going to tell you I'm sorry in advance.
As the most humble man in the world ever,
[MUSIC - RAY CHARLES, "AMERICA THE BEAUTIFUL"]
I want to thank you for being here, and I appreciate you almost as much as I appreciate myself.