Aviva Sonenreich  0:00  

You know, the difference is, is that there’s a million DJs in the world, but there’s not very many people who like literally spill the secrets of real estate, specifically commercial real estate on the internet. And and the difference between that is that people want to learn about real estate on the internet they want to learn about commercial real estate on the internet. It’s really a supply and demand situation where in the music industry there’s little demand for artists because there’s such a big supply whereas when it comes to being a commercial real estate, TikToker, the there’s little supply and so there’s higher demand.

Announcer  0:46  

Welcome to C R E PN Radio for influential commercial real estate professionals who work with investors, buyers and sellers of commercial real estate coast to coast whether you’re an investor, broker, lender, property manager, attorney or accountant we are here to learn from the experts.

J Darrin Gross  1:05  

Welcome to Commercial Real Estate Pro Networks, C R E PN Radio. Thanks for joining us. My name is J. Darrin Gross. This is the podcast focused on commercial real estate investment and risk management strategies. Weekly we have conversations with commercial real estate investors and professionals who provide their experience and insight to help you grow your real estate portfolio. 

Today’s program is sponsored by Building Insurance and Risk. Don’t put your real estate investment at risk, work with building insurance and risk and receive multiple coverage offers with a side by side coverage comparison. To learn more, go to BuildingInsuranceRisk.com. 

Today, my guest is Aviva Sonenreich.  She is the owner of Warehouse Hotline, leveraging advanced marketing techniques to maximize your commercial real estate results. She is also the number one commercial real estate broker on TikTok. Where her handle is @realestatesource and has over a million views. And in just a minute we’re going to speak with Aviva about Warehousing and TikTok. 

But first a quick reminder, if you like our show, C R E PN Radio, there are a couple things you can do to help us out. You can like, share and subscribe. And while you’re there, please leave a comment. We’d love to hear from our listeners. Also, if you want to see how attractive Our guests are, be sure to check out our YouTube channel. You can find us on YouTube at commercial real estate pro network. And while you’re there, please subscribe. With that I want to welcome my guest, Aviva Sonenreich, welcome to C R E PN Radio.

Aviva Sonenreich  2:53  

Thank you so much for having me.

J Darrin Gross  2:56  

Well, I appreciate you doing this. And I am so looking forward to our conversation. Before we get started, if you could take just a minute and share with listeners a little bit about your background.

Aviva Sonenreich  3:06  

Sure. My name is viva, I’m here in Denver, Colorado. I work day to day as a warehouse, leasing agent, sales agent, property manager in my 20s, which was about four months ago, prior to that I had a music career, I learned how to market in music. And what I found was that when I applied the marketing strategies for my music career to my real estate, it worked a lot better than it did for the music. So I have found in the commercial real estate industry, I feel like technology is all nearly untapped. And I every day work to figuring out how that I can maximize technology to help my clients, tenants, friends, brokers, etc. So you’ll see me here on the web, because that’s my favorite place to hang out.

J Darrin Gross  4:12  

Awesome. So music What was your role in music? Before real estate?

Aviva Sonenreich  4:19  

I was in a DJ band and we were called Mom and Dad and we played some big shows and festivals and it was it was great. But I really think I was probably put on this earth to do real estate and so it’s working a little better. And I think I like it a little bit more.

J Darrin Gross  4:39  

Well, but the the DJ and the marketing thing I can only imagine. I’m assuming you’re probably fairly responsible for for attracting or drawing a crowd to whatever event it was that you were DJ’ing Was that was that a lot of where you I mean, is that is that not the case?

Aviva Sonenreich  5:00  

Oh, yeah, you know, with any business marketing is a significant aspect. Okay with most businesses marketing set large aspect. And music is certainly one of those businesses and unfortunately, people in the music, music consumers, they don’t like to be advertised to. They don’t like. Yes, people don’t like to be advertised to in general. And as a result, I noticed I had to find creative ways to get people to pay attention to our band. And even then it was still extremely difficult. But yeah, like I said, when I started using those exact methods and applying them to commercial real estate, it actually started to work, because it’s just such a different industry and a different beast.

J Darrin Gross  5:54  

Well, I’m just trying to think because, you know, the real estate, the target audience, as opposed to what I would expect for a show, slightly, slightly different. Not exactly one in the same. Did you find the the real estate audience more receptive, or? Any were the differences?

Aviva Sonenreich  6:23  

You know, the difference is, is that there’s a million DJs in the world, but there’s not very many people who, like, literally spill the secrets of real estate, specifically commercial real estate on the internet. And, and the difference between that is that people want to learn about real estate on the internet, they want to learn about commercial real estate on the internet. It’s really a supply and demand situation where in the music industry, there’s little demand for artists, because there’s such a big supply. Whereas when it comes to being a commercial, real estate, tick talker, the there’s little supply, and so there’s higher demand. And so leading into what they taught me an economics class in high school, who would have thought?

J Darrin Gross  7:17  

Well, no, you know, the supply and demand thing that’s important to get right if you want to be, you know, in demand. If you’re on the wrong side of the supply, like I said, there’s, there’s a, you’re one of many, it’s pretty hard to stand out versus if you’re, you know, one of a very few. So that’s cool. So real estate, what, what led you to, to real estate from music?

Aviva Sonenreich  7:44  

Sure. So real estate has been a family business for a few generations. But I noticed growing up, my dad was in real estate, my mom was a dentist, and I noticed how my mom worked with her back on a schedule, a grueling schedule, and I noticed my dad’s life was less of this grueling schedule and more, you know, he could work from home and it was a more of a lifestyle that they liked and thought that would work for me and my personality type and that was that was the case.

J Darrin Gross  8:29  

So is the family history in industrial warehouse as well? Or is that something you sought out?

Aviva Sonenreich  8:37  

So my, my grandparents fled religious persecution in Nazi Germany in 1950, came to America with literally nothing except for a baby and had the the true immigrant true true in the grid story, which I’m very proud of. In 1984, my grandfather bought a where are the first warehouse that really began this journey? You know, my grandfather was in residential motels, hotels, and what my father noticed in the hotel motel and residential business is that it’s 24/7 you’re getting calls 24/7. There’s no, you can’t really have boundaries if your tenant has a need, like heating. And it’s zero degrees outside and it’s a Sunday night. And so because of this lifestyle that my father saw my grandfather had being so involved in residential. My father went into warehousing essentially. And he between himself and partners built a portfolio of about 15 warehouses between the 919 99 to 2015. Oh, he’s still having but Um, you know, and he, he’s into the acquisitions and the syndication and we lease and manage all of those properties but technology is not something that he was interested in. And so diving into the warehousing I love the word I you know, I’ve done office retail multifamily deals, I don’t I would love to do warehousing and warehousing only integrating technology into our, into our business has just, we’ve been able to expand and grow and the trajectory looks good, because commercial real estate does not is not widely accepting to the internet. And it’s nothing but opportunity for those who want to take the time and figure it out.

J Darrin Gross  10:51  

Do you find that purely generational or do you find that even some of the younger real estate people are resistant to internet and in the marketing?

Aviva Sonenreich  11:06  

That’s a good question. I would say the reality is that the younger the younger generation knows, you know, they’re not stupid. They see what they do day in and day out. However, a lot of these brokerages are still run by people who are resistant to social media, or the internet in general. And a lot of brokerages have rules that won’t allow brokers to talk about them on the internet, or they’ll need to get their content approved before. And I find that so funny because I feel like that’s literally the exact opposite of what should be happening. I feel that brokers should be posting the brand’s own only not only but every piece of content should have the brokerage branding on it, but we are not there like and that’s just because the leaders in the industry did it before did it before the internet. And so now they’re you think, well, we don’t need that. We did it before without it, pick up the phone. And there’s a place for picking up the phone a big place for picking up the phone. But it’s not everything.

J Darrin Gross  12:16  

Ya know, I’m familiar with that kind of mindset and trying to get people to answer the phone. Today is not always that. So, but so, how, tell me how you’ve utilized and how you’ve, how are you integrating your message your marketing on the internet? I mean, I found you on Tik Tok and was like on holy moly, you know, she’s got something to say. And I just the your presentation to me was was very, you know, it drew me in and because you were saying there was a message and there was there was facts and her points. And it was, you know, you just had an is very inviting. And it’s just kind of curious how, how are you utilizing it? How are you finding? Is it primarily tenants that are finding you is it investors that are finding you? Is it sellers buyers? A little bit about them?

Aviva Sonenreich  13:17  

You know, the main, the main way that I really source leads is through Google, optimizing Google, everybody wants to know the the ROI of social media. And it’s impossible to calculate and it’ll never be possible to calculate because social media it’s a it’s very much a snowball effect. And it’s casting a net. And you don’t know specifically with tick tock, you don’t know what the net is going to catch and when it is going to catch. However, understanding these apps are geo local, so they, when I post content, it goes out in my city first. And understanding that this is a free media source to get our company name and information and you know, because of Tik Tok, I can meet people like you, and I’ve had I’ve done podcasts where local owners call me because they heard me on a podcast, right? Oh, you’re the warehouse person. I need a warehouse person. So it’s, it’s not direct by any means. But it’s effective. It’s in you know, in old school reality, everything was become the mayor of your town. And this is just a new, in my opinion, more efficient and cost effective way to become the mayor of the product type in in town.

J Darrin Gross  14:45  

No, makes sense. And in. So when you do your TikToks I mean, I’ve seen some kind of the tips and that kind of thing. Do you also like show a property do you I mean, tell me some of the The mindset or the strategy in the post, that you’re that you’re creating?

Aviva Sonenreich  15:07  

Sure, I mean, the biggest strategy hands down is how can I help the most people at once. And so you know, sometimes because commercial real estate can be so niche, I can make a post and I know it can’t help that many people goes, who else is leasing or owns a warehouse. So I do try to I do talk quite a bit about residential just because I know it can help more people. But I’ve just found when I’m when it’s really authentic, and when when I can deliver value is when I see the best results. And I just, you know, you see what works, you see what doesn’t work. And then you double down on what does work and refine it and make it better.

J Darrin Gross  15:57  

So tell me about some of the, I guess some of the wins, you know, you make the post goes up? Are you making sales as a contacts is it leads? Is it? You know, are you leasing properties? Tell me about some of the the, and actually, How long have you been posting on social media about the real estate, as you mentioned, it’s kind of a snowball effect.

Aviva Sonenreich  16:25  

I am getting I went zero to 100. On the Real Estate content, I went from never posting about real estate until to consistently posting about real estate pretty much two years ago.

J Darrin Gross  16:42  

From that, yeah. Tell me a little bit about some of the the feet the feedback and then I mean, or is it creating sales? Or is it more of like a following kind of thing?

Aviva Sonenreich  16:55  

It depends, you know, I have leased space out multiple times from more so from Instagram and Facebook, I can lease space out. For Tic Tok, it’s more of a visibility type of situation I was this was pretty surreal. I was walking, I was at a warehouse in the middle of nowhere, with a with one of my partners and a guy drives fine he goes your Aviva I he knew me. And he was like, he couldn’t believe he was seeing me standing in front of a warehouse and I couldn’t believe he recognized me. And you know, the hope is is that those folks are the people that call when they need something. Now I obsess over human behavior, how what do I do to find out information about x y&z? So if I was looking for a commercial real estate broker, what would I do? I would go to Google. That’s why I put a lot of my efforts in our business onto the Google side. But I’m seeing now more and more and more my own behavior and my friend’s behavior. You say, Okay, I’m gonna go to Cancun. I don’t know what to do in Cancun. So you go open up, tick tock, and you type in Cancun on the top, and there’s going to be 100 videos of the coolest stuff in Cancun. And that’s how I find that’s how I am researching certain things now, and I know other people are researching things the same way and what I’m saying is Tik Tok is becoming the search engine. Where are you typing in at the top? And it gives you the answer. And it’s to me it’s like a new form of Google that if it converts for your business, or you have to lean into it.

J Darrin Gross  18:50  

Yeah, no, in fact, the the whole how I found you is funny. I must confess, I’m not a normal regular Tik Toker. i My son was telling me about one of his friends who some video game player, whatever and how is like, YouTube views went up to like a gazillion based on his TikToks I was like, what?  You need to be on Tik Tok? What are you talking about? So I, I went in activate the app there and I type in commercial real estate. And you were one of there was a few others. But um, you were the one that just seemed like he had point after point. And it was like, just kind of bite size information that made a point. And maybe you want to watch another one because oh, wait, what else you know, as opposed to somebody who’s going on, you know, just kind of a because I feel like some of it’s just kind of you know, like you’re catching a presentation as opposed to a message that’s directed to me, kind of thing, which I felt like yours was more of like, you know, point you know, a tip that kind of thing. And, anyway, it was captivating. And, you know, again, what I think what you’re saying about him Brand awareness awareness. I’m not certain, but I’m assuming there’s something in the Google algorithm that recognizes the posts that you have on Tik Tok, that somehow feed into the Google algorithm. Is there. Is there any? Is that my own belief? Or do you know if there’s anything that that feeds that? Or do you then populate your Google stuff with a Tik Tok? Or is there any kind of cross pollination,

Aviva Sonenreich  20:30  

I don’t see the cross pollination, like, in my analytics, or, and I don’t hear too much about it, I’m, I’m very much I’m, like, if I want to work an app, if I want to get to know an app, become friends sees in the algorithm, it’s directly in the app, you know, understanding what new features are pushing generally, if they’re pushing new features, you can catch an edge there. So for example, with Google, I am all in my Google My Business page every single day right now, because I’m getting free front page exposure through maps on Google My Business, and I’m getting crazy, consistent leads for free. Whereas last year, I was paying $500, just for Google ads every month, now I’m getting the same exposure, for free. So it’s more about really getting to know the program and seasoning it and working it to get the algorithm to support you, you know, it’s a relationship, it’s like you do you know, you give me what I need, I give you you need, and we’ll help each other out. That’s how, that’s how I see those. So I don’t see them together, I do see them apart. But they all work together to create like you said that bigger brand awareness.

J Darrin Gross  21:56  

And I’m curious too, are you not able then to direct people to a website from your, your Tiktok profile page? I mean, it’s or so if I see a video that I hit your, your, your profile page, does it not have the opportunity to say go here for more? Or is that? Or is there a way to insert that links or whatever?

Aviva Sonenreich  22:21  

Yes. So on the front page of your Tik Tok, you get one link. And I’ve used my link for very, you know, various tests and trials right now what I do is I have a due diligence kit that I use, every time I buy and help someone buy a property, you can download my due diligence kit for free. And it’ll take you to my website, and I capture the email there. So.

J Darrin Gross  22:48  

 There you go.  So again, kind of a, I mean, to me, that would be the opportunity for the cross pollination, not necessarily for the the interwebs or the, you know, the Google to pick up on the Tik Tok or whatever, but just that that link is there so that somebody can, and I would assume that would also count as a backlink. Or I don’t know how that all that marketing stuff. But I just know, there’s some some things that really help your rank and, you know, become more found if you have those kinds of things. You have any thoughts on that? Or do you think that’s the the backlinks and stuff to that any of your

Aviva Sonenreich  23:25  

Backlinks or something I think about daily? Yeah. I don’t know very much about them. I do understand that they help for your SEO? I cannot, I don’t know to answer your question. I do not know about that. And that’s a little above my marketing paygrade.

J Darrin Gross  23:46  

Gotcha, gotcha. So with the warehouse, the market the clients that you help and the are can you describe or do you have kind of a ballpark sense of how many of the properties are owner operator owned versus tenant leased properties?

Aviva Sonenreich  24:14  

I’d say maybe 40%. Owner Occupied 60% tenant maybe 35%. Owner Occupied okay. 65% tenants.

J Darrin Gross  24:27  

So I would assume then there’s most of your your transactions and follow on the leasing side, is that?

Aviva Sonenreich  24:35  

It really just depends truly on the day, week, year and what’s going on in the market. I have a tenant rep broker who works under me so she does a lot of my tenant representation transactions. I do lease our portfolio so I’m and I do third party leasing. So when I say are important for layup with myself and all the other owners that I represent? I do I do lease those. And then obviously I work with friends, tenants people I meet on the internet to buy and sell listings across the Denver Metro.

J Darrin Gross  25:20  

Got it. Buyers of warehouse space, do you find? Are they typically like a syndication? Or are there individuals or partnerships, or what’s the what’s the typical buyer owner model?

Aviva Sonenreich  25:40  

Recently, most of my buyers have been owner users, specifically in the warehouse space, what happens is is warehousing has become cool recently, and there’s been a lot more interest in the product type. So when there’s more demand for a product type, cap rates compress. So it’s becoming less and less attracted to a syndicate a warehouse for 5% return in this specifically in this environment, but we’re starting to see more 6% returns because of the interest rates, but for all intensive purposes, a lot of my investors are going elsewhere, just because these industrial deals, like, you know, it goes on the market, and then there’s five offers that day, and there’s cash and politics. And whereas, and you don’t want to necessarily be in a bidding war, you know, you might maybe use it, maybe the move is to zig when people zag and go buy some retail that makes sense or medical office?

J Darrin Gross  26:52  

Yeah. Definitely. One thing I’ve always, you know, admired is in real estate, I mean, some of my clients, how, regardless of the economic conditions, they’re always able to zigzag or do something that, you know, they find a way to make money in the marketplace. And and I think sometimes we shouldn’t as having your head on the swivel, or just being aware of the opportunities can really, you know, benefit you and your your portfolio they’re. So on the size of warehouse, what’s a typical size of a warehouse that you’re involved in?

Aviva Sonenreich  27:36  

Sure, we are more of the small warehousing, which I would say is anywhere from 1500 square feet to 50,000 square feet. Okay, so mostly small businesses, mom and pops, but we have some national tenants and clients.

J Darrin Gross  27:54  

And in the warehouse spaces, is it strictly warehouse? Or can it be like flex space? Where you have a little bit of I mean, mix? Or is it? Or is it just a four walls and roof and

Aviva Sonenreich  28:08  

There’s definitely we do flex, there’s every use is different, everybody’s need is different. We’ve got dance studios, cross fits, and you know, anything from retail, and then to like true industrial manufacturing or the trades. So it’s a bit of everything.

J Darrin Gross  28:34  

And as far as the the owners of the property? Is there a typical hold time for the strategy of acquisition as it? Is there any thoughts that come to mind there?

Aviva Sonenreich  28:49  

Sure, our strategy is buy hold, never sell. That seems to work pretty well, for us. I mean, you know, I’m glad the buildings that our family purchased in the 80s and 90s, they kept them because we’d be kicking ourselves today, had we not? But it’s just it’s so hard because with the revolving, like with our needs, as a culture are changing because of the internet and because of new logistic logistical ways to deliver product to us. And so I think, you know, in terms of buy Hold, hold periods. We’re kind of on standby right now because we don’t know where the landscape the commercial real estate landscape is going to shift and what makes the most sense.

J Darrin Gross  29:47  

So Denver, I mean, it’s clearly been, you know, one of the, the high growth as far as demand You know, at least what I’ve seen from from afar. It’s been, uh, on the, on the radar screen there showing up as hot as far as you know, people moving there and, and just demand. Are you seeing that warehouse demand? I mean, obviously you mentioned this kind of hot, is there a lot of new construction going on? Or is it? Or is it just kind of a limited supply? Or what’s what’s going on with the real estate or not the real estate but the the warehouse supply?

Aviva Sonenreich  30:31  

Sure. So right now what is being built are mega warehouses. These are 100,000 square foot 200,000 square foot. I remember very, very early in my career, I cold call the gentleman, I didn’t really know anything about him. He, at this one 10,000 square foot building in Denver, I was like, Okay, I’ll call the guy, he wound up being this billionaire I didn’t even know at the time. But he says on the phone to be, you know, I got a 50,000 square foot warehouse in New Mexico I want to get rid of. And I’m like this young green broker and I’m like, oh, so I hang up the phone, go to my managing broker, I got a guy with 500,000 square feet, you also sell and my managing broker looks at me, he goes, there are no more than five 500,000 square foot warehouses in this country. Like, what are you talking about? And now, that’s all they’re building are 500,000 square foot warehouses. So, but what they’re not building are the small warehouses, these small bay industrial. So, you know, you think about, okay, 2010 when cannabis was legalized, it took a quarter that you’d immediately took a quarter of our small warehouse space. So all of a sudden, overnight 25% of the inventory is gone.  Then comes e commerce just this wave of E commerce COVID. And now these logistics crisis, you know, there’s all these logistics issues with construction. And they’re, you know, small bay warehousing in the United States is effectively sold out this year. And next year, it’s got like 4% vacancy, depending on where you are. And then it costs too much to replacement costs are too expensive to rebuild these smaller sites, so it’s more cost effective to buy them. And as a result, they’re only building these mega warehouses. And it’s gonna be interesting to see what happens.

J Darrin Gross  32:47  

Are the mega warehouses, are they primarily with a single tenant? Are they are they multiple tenants? Or what’s the other use? You know, the, the Amazon type things or what? What’s the dependence?

Aviva Sonenreich  33:02  

It’s, uh, it’s both, it’s, um, you know, Pepsi just bought a billion dollar was building a billion dollar warehouse by the airport. Same with Microsoft. But then you have these warehouses where it’s multi tenant, or parks, where it’s Home Depot next to Costco type of uses. It’s both.

J Darrin Gross  33:29  

So kind of a supply, prior to cannabis. Was it a pretty flat market? Or was there was there a lot of growth in, in warehouse space?

Aviva Sonenreich  33:41  

No, it was it was 2008 and 2009. were devastating. Really, really devastating. We at the, at that time, we had maybe like, like 100 units, and we had 13 vacancies for over a year. Or now we don’t have a day. We haven’t had a day of vacancy in 10 years. So ecom it’s been cannabis. But even if you don’t touch the cannabis, it still impacts you. And E commerce and then COVID chain. Another thing I call this like the chewy effect, you know, chewy is that dog food or cat food company, where you can say this is what I want. This is how much I want, subscribe and never think about it and it shows up to your door once a month. When COVID happened the way that consumers who never did this came and a lot of people realize Holy smokes, it is so much more cost effective, efficient, and I don’t even have to think about it to just have my chewy on subscribe, and so COVID make a lot of behavior specifically to the older generations change. And just pushed. We say COVID pushed warehousing 10 years into the future.

J Darrin Gross  35:11  

Wow. That was crazy. Yeah. Are you seeing? Is that changing the use of warehouse? Or is it? What I’m trying to say? I mean, obviously warehouse warehouse, but is there any kind of a cross over where like, maybe before somebody had just an online presence? Now, maybe they open a front showroom or something with a warehouse and back, we’re primarily it’s an online business, but what there’s some sort of a, you know, a showroom aspect? Or do you see that at all in the warehouse?

Aviva Sonenreich  35:48  

You know, it depends on the use. But the reality is that our websites, those are our storefronts, like this is our digital storefront. And that’s where people shop, nobody wants to go into retail to buy anymore. You know, you go into retail, the E, you’ll go into retail to get your hair done, get your clothes washed, or worked out. But human behavior, we like this storefront. And so, yes, there is there can be a showroom aspect. In certain industries, but overall people like people just buy online, it’s, it’s pretty wild.

J Darrin Gross  35:48  

Point and click. Yeah, yeah, no, and what’s crazy is, I think the, you know, I was kind of a slow adopter to it, just from a standpoint of, you know, like, like to know what I was buying, you know, fit, if it was something, oh, you know, clothes or whatever. And didn’t wanna have to mess with all the return stuff. But I feel like that’s kind of the just the way it is. And also the time, whatever gap there is, from, you know, click to receive is been minimized and kind of, you know, a pretty standard affair anymore. So not, not anything to have around there. Sure. Is far as the warehouse is there, is there anything else that you see that really driving? I mean, obviously, the change in business, the, the logistics, and cannabis, and like, they’re kind of two of the big drivers of that, and the, you know, the way people are shopping? Is there anything else that you see that? possibly changing that? Or is that are those kind of the big drivers there?

Aviva Sonenreich  37:43  

Yeah, I mean, there there, there is something to be said about the trades. For example, during the pandemic, when everybody was in their house, and everybody was running their age back using their appliances, fixing, flipping, modifying our tenants in the trades, and this still stands have just never been busier. You know, there’s also a huge issue in terms of employment. So you have these companies where, you know, everybody’s using the systems in their homes. Everybody’s busier than ever, but nobody can staff. Anything. Yeah, I’m hearing about it every day from tenants, vendors, friends, family. So it’s a, it’s crazy out there.

J Darrin Gross  38:38  

Now, I think that’s, that’s an understatement. Just based on, you know, the human capital aspect of this whole thing is just really, you know, I think, well, I don’t know it all the all of it is, but what’s amazing to me is how many people that were seasoned in the workplace that elected to not return from COVID. And the kind of complicating things on top of all the other complications we have. And, and so there is kind of a, a loss of some of the talent that maybe was, you know, that that did exist, I know, in insurance, I find it all the time where the person I always used to dealing with it was 30 Year 30 year veteran that could tell me the answer and just, you know, one call dealing with the newer, less experienced person that that, you know, they’re trying their best but they just don’t have the, the, you know, the experience related to help them yet. And so there’s that that delay and whether or not they’re gonna stay and whether or not they want to stay in insurance or go on TikTok or, you know, go into real estate or whatever, it’s still kind of up in the air, that kind of thing but, but now, it’s it’s definitely some interesting times with all that any, any sense of slowdown with interest rates, hiking up is that anything that’s affecting you Any of your warehouse business?

Aviva Sonenreich  40:03  

Oh, absolutely. It’s harder to get a deal done right now, for sure. Just the people are afraid, you know, I we’re in the business of big of big commitments being a lease or a sale, and people are afraid. There’s a lot of uncertainty. And there’s a lot of questions, not a lot of answers. And with the rising interest rates, you know, it’s really hard to justify 5% cash on cash. So definitely feeling the effects.

J Darrin Gross  40:38  

Do you see any softening in the prices? Or is it more of just hesitation to do the deal?

Aviva Sonenreich  40:46  

Both? Definitely, you know, but industrial has just been, like crazy, like, the growth has been unbelievably ridiculous. And so obviously, anything that goes up that fast, might not be supported. Right, that might be that might have been an inflated number due to the frenzy. You know, maybe not by the largest margin, you know, nothing, there’s not a fire sale by any means. But you’re not getting the numbers you were getting this time last year.

J Darrin Gross  41:24  

Right. Well, and and, you know, as we’ve talked, I can’t imagine that the demand, or the need for the space will change, but it seems like that just kind of where are we going to land with this thing between interest rates. And just the change of market I was feel like, that’s kind of the, the painful, you know, the transition, once it gets to be a, you know, understood, this is the new marketplace, pricing adjust, and then we can go forward. But it said, in between thing where everything’s kind of, you know, a little bit just trying to figure it out, and whether or not this is the time to do it or, or kind of thing. So I get it.

Aviva Sonenreich  42:08  

That’s the question. That’s the question. 

J Darrin Gross  42:11  

Yeah, hey, Aviva. If we couldn’t like shift gears here for a second, by day, I’m an insurance broker. And I work with my clients to assess risk, and determine what to do with the risk. And typically, there’s three strategies we consider, we first look to see if there’s a way we can avoid the risk. And when we can’t avoid it, we look to see if there’s a way we can minimize the risk. And for the risk, we cannot avoid or minimize, we look to see if there’s a way we can transfer the risk. And that’s what an insurance policy is. And as such, I like to ask my guests, if they can look at their own situation, could be clients, interest rates, the market, political, however, you would like to identify, or, you know, to identify and consider what you consider to be the biggest risk. And so for clarification, while I am an insurance broker, I’m not necessarily looking for an insurance related answer. But if you’re willing, I’d like to ask you, Aviva Sonenreich, What is the Biggest Risk?

Aviva Sonenreich  43:26  

I genuinely feel like the biggest risk is not taking risk at all. And not learning the pros and cons to risk that I think in our lives, our risk tolerance, can and will change and you need to assess what risk makes sense, when, for example, I feel like I can be riskier now because I don’t have kids, that could change in three to five years, and I will have mouths to feed so I can’t maybe make some of these really risky decisions in investing or working or any, in any capacity. But what I’ve noticed is that the I love the thought thinking about risk and reward and the I find the biggest and the best things happen with the most risk, right? The bigger the risk, the bigger the reward. And so understanding that and doing it in a way that is comfortable to me or you I think not having that conversation with yourself is the biggest risk of all.

J Darrin Gross  44:42  

No, well put no risk, no reward and, and, you know, I I looked at all the little things that I thought were a big deal at the time, you know, and going into them and clearly buying real estates one of those but the reward down the road once you get past and this is usually well serve so, good point. Hey Aviva. Where can listeners go if they’d like to learn more connect with you? Sure.

Aviva Sonenreich  45:11  

So the best bet is going to be on Tik Tok @realestatesource. You can also email me at Aviva@warehousehotline.com or mosey over to the warehousehotline.com And you can find me there. So thank you. I appreciate that.

J Darrin Gross  45:33  

Awesome, Aviva. Thanks for taking the time to talk today. I’ve thoroughly enjoyed it. Learned a lot, and I look forward to doing it again soon.

Aviva Sonenreich  45:44  

Thank you for having me. I really, really appreciate you reaching out.

J Darrin Gross  45:47  

All right, for our listeners. If you liked this episode, don’t forget to like, share and Subscribe. Remember, the more you know, the more you grow? That’s all we’ve got this week. Until next time, thanks for listening to commercial real estate pro networks. CRE PN Radio.

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