The term velocity is most often used as it relates to movement of objects, typically applied in physics, kinetics, mechanics or other such lofty scientific topics. Velocity is speed in any given direction.
As has often been the case in my life, I take a word in one area of study and apply it (either aptly or not) to another field. In this case, I would propose using the word velocity as it relates to deals in the commercial real estate field, namely leasing of commercial buildings.
I am constantly asked to evaluate the “success” of a property from a broker’s perspective. In other words, is there interest in leasing the space and how much? This question might be posed when I am making a proposal for a leasing assignment or trying to justify why I should stay on to lease a project after a period of time.
My response will often utilize this term - i.e., the “velocity” of the leasing refers to the amount of interest there is in leasing the particular space. I can tell whether a project or space has a good chance to lease based on the “velocity” of inquiries or “deals in the works.” Are we gaining momentum (i.e. speed) and moving toward a deal (i.e. direction), or not?
Stay tuned for my next blog when I discuss the “velocity” of my dating life!
Jeffrey Hirschfeld, cofounder of Antonoff & Co. Brokerage, authored this post. Antonoff & Co. Brokerage takes pride in the quality of our brokers and in their ability to understand the commercial/retail real estate markets.
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