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TR U M P STR A TEGI ES FO R R E A L ESTA TE

the property so that the buyer would come in with an offer
close to the asking price. When a friend asked my advice as to
how much he should offer for the unit—which sounded like his
dream home, I asked: “What offer did you have in mind?” He
replied, “Since the seller said $3.6 million firm, I intend to
offer him $3.4 million.” I told him: “Offer $1.8 million.” He
replied, “The seller will be insulted with such a ridiculous offer
and I’ll lose the deal.” I said, “Try it, and see what happens.” He
took my advice and eventually bought the apartment for $2.1
million. The aura of legitimacy almost cost him $1.3 million.

A typical instance where the aura of legitimacy can mislead real
estate investors is when, for example, reputable real estate brokerage
firms turn out a report indicating the current status of the rental or
sales market. They have created this aura. They have compiled a sur-
vey from a limited sample they have selected; they have arrived at the
figures; and they have published the information. And from all this
input they arrive at a figure of 13.8 percent vacancy rate for type A
office space. Anyone reading this report might conclude, “If the top
real estate brokerage firm says that the vacancy rate for my type of
building is 13.8 percent and the vacancy rate in my building is only
10 percent, I’m really doing great.” But it’s just not so. These kinds
of market statistics are always averages. They may bear no relation to
your particular building. In fact, Trump properties usually sell or
rent for much higher than the market average.
When we first started out to lease 40 Wall Street, we interviewed
several leasing brokers who wanted the assignment. All were of the
opinion that we would never achieve a rental of more than $17 a square
foot in the foreseeable future. They gave us a whole bunch of statistics
showing the rents at other vacant buildings in the area. But they didn’t
investigate how 40 Wall Street differed from the norm. We felt 40 was
special because of its harbor views and unbroken floor areas, and we

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