By Beck Erholtz, Commercial Agent | Goldmark Commercial Real Estate
In commercial real estate, relationships matter, but numbers and data should generally rule the day. You can be best friends with the Client, but if you are not giving them actual market feedback and accurate information, you are not really helping them make good decisions. Pricing, cap rates, lease comparables, vacancy trends, and debt markets can all play a major role in determining whether a deal actually makes sense. From my perspective, the best brokers and advisors are the ones who can combine strong relationships with a realistic understanding of the numbers.
One of the biggest mistakes I see in this business is people becoming too emotionally tied to a property or a deal. Sometimes owners believe their building is worth more because they have owned it for decades or because they have a personal attachment to it. Other times, buyers become fixated on a property because they like the location or the history of the property. At the end of the day, however, the market does not care about emotion. The data and underwriting ultimately determine whether a deal works or not.
That does not mean relationships are unimportant. In fact, relationships are often what create opportunities in the first place. Many off-market deals, investment opportunities, and expansion conversations happen because people stay connected and communicate consistently over time. Especially in a market like Fargo-Moorhead, where the business community is relatively tight-knit, being present and maintaining relationships can lead to opportunities long before they ever become public knowledge. Relationships often open the door, but the numbers are what determine whether you should walk through it.
I also think strong relationships are most valuable when they allow for honest conversations. The best Clients are not looking for someone to simply tell them what they want to hear. They want someone who can explain market conditions, challenge assumptions when necessary, and provide realistic guidance backed by actual data. That can sometimes mean having uncomfortable conversations about pricing expectations, lease rates, or property values. In the long run, however, those conversations usually lead to better outcomes and stronger trust.
Data only tells part of the story, though. Numbers can show you vacancy rates, leasing activity, or recent sales, but experience and insight help explain why those things are happening. By staying connected with business owners, lenders, developers, tenants, and investors, you gain a much deeper understanding of what is actually driving the market. Sometimes the best information comes from conversations happening months before anything officially hits the market. That combination of market data and local relationships is what creates real insight.
In today’s market, I believe the most successful investors and business owners are the ones who stay disciplined. They focus on fundamentals first and relationships second, while still understanding that both matter. Strong relationships can help uncover opportunities, negotiate deals, and build long-term partnerships, but they should never replace sound underwriting and realistic analysis. The best decisions usually happen when good relationships are supported by good data.
From my perspective, the role of a commercial real estate advisor is not simply to facilitate transactions or maintain relationships. It is to help Clients make informed decisions using accurate market information, realistic expectations, and long-term thinking. Relationships absolutely matter in this business, but they are most valuable when they help deliver better advice rather than cloud objective judgment. In a market like Fargo-Moorhead, where people know each other well, that balance becomes even more important.