Business, Profits and Strategy

12 Possible Conflicts of Interest

...represents your industry competitor while representing your company;

...represents your business partners, stakeholders, or your other service providers;

...represents a client from another industry that has the same real estate and/or business requirements as your company. This other organization, while not necessarily an industry competitor, could become your real estate competitor;

...represents properties that may be acquisition candidates for your company;

...represents other interests of a landlord or seller, when that landlord or seller controls property that may be an acquisition candidate for your company;

...represents a competing property when representing your property for disposition;

...has an ownership interest - - whether direct, indirect, through stocks, or otherwise - - in a property (or a company that owns property) that is either an acquisition candidate for your company, competes with a property in which your company may be interested or competes with a property your company wishes to dispose of. Also, be wary of the desire on the part of a service provider to secure a future ownership position, or a circumstance that holds out the promise or the opportunity to acquire such an interest;

...seeks to represent a landlord or seller who offers your company properties, whether on those particular properties or others;

...will generate bonus compensation if your company acquires a particular property;

...will be forced to accept discounted compensation if your company acquires a particular property;

...represents you while representing the acquirer of your property;

...seeks to represent the acquirer of your property after the disposition transaction is completed.

Conflicts of Interest can have serious business, financial, and legal ramifications, but even more dramatically, can derail a real estate project entirely. Still, very often, they can be avoided or resolved through simple disclosure and the application of a practical approach to managing through them.

Andrew B. Zezas, SIOR, is Relationship Manager, Strategist, and President & CEO of Real Estate Strategies Corporation, Publisher of "Business, Profits and Strategy", a monthly online publication read by thousands of business, financial, and real estate executives nationally, and, is the author of two new real estate books, The CFO's Guide to Understanding Corporate Real Estate Transactions and The CFO's Guide to Hiring the "Right" Real Estate Service Provider, both of which will are available at www.TheCFOsGuide.com.

Mr. Zezas is well-known for his ease and informative style of public speaking, and has given informal talks, formal presentations, and has lead training and educational programs for business, professional, government, and trade associations, throughout the US and Canada, including the American Management Association (AMA), the U.S. Postal Service, RealComm, Building Owners and Managers Association (BOMA), Society of Industrial and Office Realtors (SIOR), and others. Andrew is founder and National Chairman of the SIOR Tenant Representation Specialty Practice Board, a group of over 300 tenant representation focused commercial real estate professionals from around the world. He is a licensed real estate broker in New Jersey, New York, Connecticut, Pennsylvania, and Florida, and is a licensed real estate instructor in Texas and Indiana. He can be reached at 908 245 5999 or via email.

Real Estate Strategies Corporation, located in Kenilworth, New Jersey, and serving its clients throughout the country, helps companies create and execute Business DRIVEN Real Estate Solutions...and Opportunities, faster and with less risk. Visit www.RealStrat.com.

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