I saw the phrase “extend-and pretend” in a recent WSJ article relating to banks, using this strategy to avoid exposing their commercial bad loans to forestall hits to their balance sheets, that might occur.
This “extend-and-pretend” analogy also applies to commercial real estate brokerage performance. How many listings are out there, that have been extended with no results to show for it? This is a good time for owners and landlords to carefully scrutinize the brokerage company representing their properties. The relationship alone should not be the reason to hang on. What worked in the past, may not work in today's market. If the owners sale or lease objectives are not being met, understand why not? It may be time to move on to another brokerage company. Make sure it’s a brokerage company using leading edge strategies to market the product for maximum exposure and also cooperates their commission fees with other brokers. It’s not always safe to assume this is being done, unless you ask.
Source: Tony Casalena, CCIM