An independent property consultancy with a forte for auctions
Aarif Saib takes a look at Deal Core, an independent property consultancy with a forté for auctions
Going once, going twice, sold! With a flick of the gavel, Deal Core, an independent property consultancy,
has built a reputation working with bank and property auctions as well as in sales and leasing.
“Our people combine entrepreneurial spirit and specialist knowledge of the property sectors we focus on with the highest standards of client care,” said owner and managing director, Ryan Berry.
Attracting clients from across South Africa, Deal Core serves a wide variety of real estate customers, from private investors and property companies to banks, housing associations and local authorities.
“At Deal Core we are committed to delivering our knowledge, resources and talent on behalf of clients, enabling them to make the most informed real estate decisions, creating enjoyable transactions through the efforts of the most dedicated professionals supported by innovative programmes, tools and management,” he said. Deal Core started as a franchisee of Greenday Property in August 2012. In July last year, Berry broke away and rebranded to form Deal Core.
Berry is experienced in the property sector and has formed important and sustainable relationships with key players in the market which has assisted in closing a number of substantial deals over the last year.
“Coming from an auction background, I have brought the necessary experience and knowledge into the company that has formed a solid foundation and enabled us to grow a strong brand,” he said.
Deal Core has adopted the best possible infrastructure to enable clients to be leaders in their respective markets.
“We represent buyers, sellers, landlords and tenants in all forms of commercial and industrial property. We
offer our services within commercial, industrial and retail property sales and leasing; as well as in auctions.
“Over the past decade, large property companies, as well as private individuals, banks and local authorities have shown more favour towards auctions.
“It makes sense if there are multiple properties to sell or if a given property is an unusual one. Auctioning a property puts a time frame on your sale. Auctions also generate a far more dynamic sales environment where the price can only travel upward. However, mastering that environment is the task of a real performer.” Employing 10 people, Berry is proud of the brand he has built. “In a short period we have
built what I consider a very strong and recognizable brand. And we’ve assembled a team of deal-makers who have concluded numerous auction, sales and leasing deals in the past few months. Deal Core continues to move forward while building its brand, team and presence in the market.”
In a saturated property market, Deal Core has key strategic advantages.
“Our biggest advantage is our service offering – being sales, leasing and auctions. The three offerings constantly feed off each other. The auctions bring us leasing and sales opportunities and vice versa. We are able to offer our clients the right property-specific service offering. “We are in a position to assist clients in the restructuring of their tenancies before selling, thus optimizing their returns. We are not after a quick sell.” Business has been challenging in the past year. “Our main challenge has been that we are part of a competitive industry, but with a strong brand and highly skilled team we have been able to succeed in a short space of time.” With challenges come great rewards. “Deal Core ended last year with a bang, having confirmed a substantial number of sales in the greater Durban area.
“These deals were concluded through auction and private treaty sales. Numerous attractive leasing deals were also concluded.” What is about to go under the gavel? “We now have 14 properties going on auction on August 5 at the Durban Country Club.”
Berry provides some insight into property industry trends: “Durban has always been unique in its trends. Due to the limited availability of land and opportunities, developers, tenants, and landlords have to make do with what is available. “The manufacturing sector has been under strain lately, resulting in poor economic growth. Due to this poor economic growth, we are seeing large manufacturing facilities shut or downsize. Property players are paying exorbitant amounts for these manufacturing facilities and turning them into logistics hubs.” The inner city office sector continues to move to greener pastures such as Westville and Umhlanga, creating opportunities for new developments as inner city buildings are being redeveloped into residential buildings. “Opportunities are always available if you know where to look.”
Major issues the property industry faces include legislation, competition and a lack of stock.
“Legislation is continuously being challenged by the Estate Agents Affairs Board with little direction, communication and understanding of the industry on their side. “Their focus is on legally compliant individuals and companies where it should be on the illegal operators. Competition in the commercial property sector is fierce, with new companies and alliances being formed every month. This coupled with the inadequate supply of good stock makes trading difficult.”
However, Berry is not fazed by the challenges. “We view these as opportunities in the markets we serve. Deal Core and its team members are all legally compliant and strive to do all that is necessary to maintain compliance, as difficult as it is. “We are able to differentiate ourselves from the competition through our service offering, systems and intellectual property, specifically in the auction category. “With our brand and presence in the market, we are starting to find stock easier and often it comes to us as a result of our growing reputation.”