TUCSON, AZ, March 31, 2023 -- Dean Cotlow was awarded the Best-in-Class Award by Trend Report last year for his work in the Tucson office market. We asked Dean to tell us about his successes and how he got to where he is today in the competitive business of commercial office sales.
This is what Dean had to say:
Tell us how you began in CRE.
In my first life, I owned four retail tire stores, a warehouse, and a garage. My father's early death forced me to take over my family’s business at nineteen years old. I was the only family member working at Tire King. I entered the real estate business to understand the process since I was leasing and buying stores and warehouses.
How long have you been doing what you’re doing?
I have been in CRE for 43 years.
What tips do you suggest to someone just starting in your business?
First and foremost, work with a trusted mentor, get as much education, such as CCIM courses, as possible, and get to know your other brokers. Remember what you were taught about honesty, character, work ethics, empathy, kindness, and politeness, and just as important, learn how to have fun doing what you do best.
Easy to skip a few of the above items, but never let go of you can make a difference to others. Never forget that feeling and that sense of accomplishment in always trying to do good, do a great job, take pride in workmanship, and know that your gift is giving to others. Always think about quality, not quantity.
Never be married to an outcome such as a commission. Instead, always strive to be your best, and the outcome will always be positive.
What has been the most significant factor in your success?
It is a combination of events, people, and projects. The most significant impact at the beginning of my commercial real estate career was getting an education from CCIM and participating in various educational events. Having the tools will always have its advantages.
What can you tell us about winners in your field?
All the winners have a work ethic. They never do just enough but more than enough. Each transaction should be investigated as if you were buying or leasing the property.
Tell us about a teacher/mentor who affected or set you on your path.
One of the most important people besides my adorable wife Donna was Fred R. Pace of Pace Construction, Inc. Whenever I sensed an issue; it always seemed to be with the people I was dealing with and not the effort I made to complete the task at hand. Fred would always entertain me with a story related to my circumstances, although he never gave me THE answer and always let me come up with the solution. We must know about our relationships and understand their true motivations. Often hard to get the truth from a customer, but I believe in being a great identifier of character. Once identified, there are times you change tactics to accomplish their goals. The tactic may be the fact that the time is too early for them to sell, buy, or lease, and you adjust.
What is your greatest career accomplishment?
Early on, I represented Hughes Missile Systems in their headquarters move to Tucson. Took three years to land the assignment. Most recently would be all accomplished with the ever-expanding Atlas Copco complex, now the Epiroc facility. We are on our fourth expansion, and two others await approval from a $40,000,000.00 restructuring of their lease and $16,000,000.00 of new build-to-suit opportunities to complete the new lease structure. The process took time, patience, and a keen understanding of how they operate, which won the assignment and is currently underway.
What was your most recent biggest challenge faced that you overcame?
The older you get, the more syndical you get, and there is always a strong effort to keep the old man in the box.
What are your views on trends or pitfalls in the current CRE marketplace? Trends, Ups, downs, and sideways, who cares. We see the frightening reality of an unthinkable destroyer of our families, communities, and national economy every year. Frankly, we have seen too much panic. Over my career, we have found an opportunity in every conceivable market condition we have been challenged. With the right background and tools, we can always remember that brokers have easy opportunities when the market is hot, but the key is, do you have the tools to prosper in a down market. We get paid in an upmarket but must work even harder in a down-market. There are always opportunities.
What is the most important question to ask a Buyer of Seller these days?
Are you a nice person? Are you ready to move forward? Why are you doing this? If you can understand a client’s business then you can match them to a particular property.
What do you ask Lenders?
What is your realistic processing time? Whatever that is, set up the expectation to match whatever third party you must do business with.
What is the most common type of client you typically work with?
Primarily user-orientated clients. Very little investment work or retail transaction. I like complex medical and industrial type properties.
Please tell us what makes you successful.
Being able to identify nice people that want to accomplish something. It is simple for me; go somewhere else if you are not nice. It is all about people.
What are you passionate about?
Quality. If it’s worth doing, it is worth doing right.
What motivates you the most?
It is being able to identify clients that appreciate quality and appreciate the attention to details they require to be profitable.
Is there one deal that stands out in your mind from last year that you would like to do again? And why?
The Epiroc restructuring of their lease last year and the build-to-suit that follows. It was complicated and took several years to complete, but it took a unique understanding of their business to win the assignment. Four separate expansion projects are identified, two of which are approved and financed.
One more thought that many people need to remember. The world is digital. Every email, advertising piece, brochure, etc., must reflect your character, commitment, and image of yourself and your company. Each day I ask myself: What am I saying to people when I am not there? Messages are digital; can you express the emotional response people seek with an email? Think about whom your email goes to, and maybe they forwarded it to another person.
When I am tired, I usually get up by 4:00 AM and am in the office between 6:30 AM and 7:00 AM. I usually get my second “wind” after my first bottle of formula. That's a little humor.
In my life, the “Circles of Life” is one bunch of hilarious circles. People only need to ensure that their circles’ diameters are unmeasurable by standard measuring instruments. My circles are much wider than anyone I have ever met. Some are at the top of their game. The ones we always stare at in absolute amazement, but they are the more obvious popular ones we see every day. In the other circles, the serious ones such as business, you should be able to perform in your sleep. Creative circles sometimes require a certain level of depression and concentration; most only experience it in rare moments.
The message is Relax; it is only your life.
Where do you see the Market going this year?
The overall economy is still working, just at higher costs. The one factor that will tear us down is that 7,000,000 men do not want to work, and maybe the same for women. This can significantly impact everything we do as a nation, even more so than interest rate raises. Tucson is a unique third or fourth-tier market. The second big factor that will continue interfering with the economy’s expansion is the manufacturing and logistics side. As an example, switch gear for heavy industrial buildings is now a year and a half out from when you order. Large power transformers have been out for over a year. We may have projects completed and not be able to power them up. Companies without these two items will not be able to produce anything, will not be able to service their clients, and as a result, affect the overall economy.
Thank you, Dean.
This is the second in a series of interviews with our best commercial real estate leaders. All Trend Report’s Best-in-Class Broker Awards were awarded exclusively on sales volume transaction data from the RED Comps commercial real estate database, the most accurate, independently researched database of commercial real estate property sales information available for Southern Arizona.
Trend Report 2022 Best-In-Class Awards - Trend Report (trendreportaz.com)