Brett Bessette is a member of the Bessette Veloso Group and Residential Properties Ltd. A lifetime Rhode Islander who resides in Lincoln who graduated with a bachelor’s degree in business administration from Bryant University, Bessette entered the real estate industry in early 2022 and has been selling homes and connecting clients to rentals ever since. A member of both the National Board of Realtors and the Northern Rhode Island Board of Realtors, he is based at a Residential Properties office in Cumberland.
PBN: In the current competitive landscape, how do you differentiate yourself as a buyer/investor in the commercial real estate market in Rhode Island?
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BESSETTE: Networking and staying informed about off-market opportunities can provide a competitive edge, allowing for early access to promising deals. Many commercial offerings don’t end up seeing the market before someone within the network of the seller has an opportunity to put in a bid.
It is important to have your specific buy criteria outlined and be able to articulate that to real estate professionals around the state. As someone that’s in the market, there is a constant deal flow through our pipeline that will be parlayed to another investor. Some investors prefer a specific neighborhood, specific unit counts such as five-plus or 10-plus, stabilized assets, or value-add assets. My advice to differentiate as an investor is to know your buy box and put that criteria in front of as many people as possible. At that point, the deals will come to you.
PBN: What tactics maximize exposure for sellers to ensure they earn top dollar on commercial sales? What differentiates commercial sales from other asset classes in this regard?
BESSETTE: To maximize exposure and secure top dollar in commercial sales, a strategic combination of targeted online marketing, industry networking and engaging a specialized commercial real estate professional is crucial.
Unlike other asset classes, commercial sales benefit from a more targeted approach, focusing on the unique needs and preferences of potential commercial buyers. Tailored marketing, in-depth financial analysis and showcasing the property’s income-generating potential are key.
It is important to have property financials prepared before listing, not only for the potential buyer’s due diligence but also to satisfy the needs of their lender. Moreover, leveraging a real estate professional’s extensive network and expertise in the commercial real estate market ensures that sellers reach the right audience, driving competitive offers.
PBN: What type of commercial properties are yielding the most interest from commercial investors? Are the higher days on market heavily concentrated in one type of property?
BESSETTE: In the commercial real estate landscape, apartment buildings consistently garner high interest from investors. Their stable cash flow, potential for appreciation and consistent demand make them attractive investments. This opinion may be biased, as Bessette Veloso Group deals in both apartment rentals and apartment building resale in high volume.
As for days on market, it varies across property types, but apartments generally experience shorter durations, as long as they are priced correctly, due to high demand and a broader investor base. Other commercial properties such as mixed-use with retail spaces or assets with owner-operated businesses may face longer days on market due to specific consumer preferences. However, the market fluctuates, and it’s vital to assess each property individually.
PBN: How does third-party leasing and hands-off property management play into an investor’s strategy? When is it the right time to outsource these tasks as an investor?
BESSETTE: Third-party leasing and hands-off property management is the closest an investor can get to what many would call “passive income.” It is never truly passive, but there comes a point where it’s not feasible to manage yourself unless you built up an in-house team as the portfolio was growing. Having a leasing team and a dependable property manager is an important step in portfolio growth. Leaving phone calls from tenants and prospective tenants in the capable hands of a third party gives investors more time to do what they do best, network and source more deals.
The right time to outsource leasing/management is different for everyone. It is important to have that conversation with reputable candidates before the day-to-day management becomes overwhelming.
PBN: How do you envision the future of commercial sales when it comes to the increased use of online platforms as a tool to facilitate commercial property sales?
BESSETTE: The future of commercial sales will be driven by a digital-first approach. Online platforms have and will continue to revolutionize the industry, offering virtual property tours, data-driven insights, widespread accessibility and tailored marketing. Transactions are streamlined by online e-signature and form-sharing platforms, allowing for more efficient and transparent transactions. On the residential side, a “for sale” sign in the front lawn will never be replaced, while commercial sales are often strictly advertised online without any street signage.
Marc Larocque is a PBN contributing writer. Contact him at Larocque@PBN.com. You may also follow him on Twitter @LaRockObama.
