Welcome back to the latest BONUS episode of The Main Mike Podcast, you can stream the podcast on your favorite listening platform anywhere in the world. Adam Escoto, Dustin Davidson and our host of the bi-weekly Monday episode: Kaleb Foster, sit down with legendary Gil Stevens to talk commercial real estate.

Commercial Pulse: Joplin’s Growth

The Main Mike Podcast latest bonus episode goes in-depth regarding the condition of commercial real estate in Joplin, Missouri. The discussion among Kaleb Foster, co-hosts Dustin Davidson and Adam Escoto and a special guest Gil Stevens, a seasoned commercial real estate professional in Joplin. With a wealth of experience, Gil has developed, owned, and brokered properties in the area for over 30 years. 

“I’ve done this a long time, all I do is commercial real estate now. I’ve developed and owned commercial buildings, and today I focus primarily on brokerage and leasing.” 

It is this extensive experience that gives him the ability to observe and understand the changes that are taking place in the business districts of Joplin that keep on evolving, not only from Rangeline to Main Street but also other ​‍​‌‍​‍‌​‍​‌‍​‍‌areas.

The State of Commercial Real Estate in Joplin

When​‍​‌‍​‍‌​‍​‌‍​‍‌ the question was put to Gil regarding the commercial market condition, he made a direct comparison which is in line with what people are observing for residential real estate. 

“There are still buyers out there,” he explains, “but they’re looking for the right property and at the right price.” 

In brief, the need for properties is still present but it is more targeted than before. Purchasers and investors are not taking any risks; they are concentrating on the worth and the long-term benefit rather than doing a quick turnover. Gil presents a newly built example to explain his point: Dutch Bros Coffee just opened location. “It’s a 15-year triple-net lease at $2.7 million, that means they pay taxes, insurance, and maintenance everything. The owner just gets a check.” 

Yet, Gil is warning investors not to be too optimistic about the future even if everything looks very stable. 

“If they vacate that in 15 years,” he says, “I’m not sure they’ll get that $2.7 million back unless there’s another user ready. You just don’t know what that corner will be worth then.” 

This is a sober view of how commercial investors weigh the present against the future possibilities. According to Gil, 

“To put a deal together you cannot just focus on one area, you need to think from the point of view of the owner, the tenant manager and the bank ​‍​‌‍​‍‌​‍​‌‍​‍‌relationships.”

Buying  vs. Being the Potential

During the conversation, Kaleb mentioned a point that Gil made in the past, that his clients "buy what it is, not what it could be." This led to a story from Gil's early days when he had a moment that changed his whole viewpoint of real estate investing. "I recall when I was trying to sell a commercial property and I told the buyer, 'This has great potential,'" Gil says. "The guy looked me straight in the eye and said, 'I am not buying potential — I am the potential.'" 

This experience has stayed with Gil for many years. To him, one of the keys to commercial success is not to be the one who is buying the potential, but rather, an investor creating the future through their own work, knowledge, and trust in their business. 

"Most people who are involved in a commercial project are the ones who believe in it, otherwise, they wouldn't be doing it," he explains. "If they are going to take a loan, the lender is going to ask the difficult questions – best case, middle case, worst case. You have to be prepared for all of ​‍​‌‍​‍‌​‍​‌‍​‍‌them." 

Rangeline, Main Street, and the Future of Development

Rangeline Road in Joplin is still the city's most costly and vibrant commercial area. Gil has been following property transactions there since 2017, and he says that the price per square foot can vary as much as $9 to almost $28, depending on the property.

"It just depends on what's there on that piece of land," he states. "And what you can do with it - or what you have to tear down and start from scratch."

However, while Rangeline is becoming more crowded and costly, Kaleb poses a very important question: what will happen to places like Main Street or the side streets?

"It really depends on the person and how much they believe in their project," Gil answers. "They might have less traffic than Rangeline, but they will also have less money involved - and their return could actually be higher."

Gil is referring to the future development on Geneva Avenue, near Home Depot and the old telephone company area, when he makes this point. He explains that the site that was once used for the treatment of telephone poles with creosote has now been cleaned up completely and is undergoing a change of ownership.

"Developer Drew Snyder has lots of ideas for a big residential and recreational project," Gil clarifies. "We are talking about 300 homes, a recreation center with basketball and more, coming. Everything is just being laid out right now, and I believe it will be really great for the community."

Such a mixture of growth - combining residential with commercial development - is, according to Gil, the way Joplin will be turning to its next chapter.

Experience and Perspective

Dustin, towards the end of the show, inquires about how they deal with properties that have been vacant for a long time, like the old Atwoods in Webb City. Gil responds that the same rules are valid as with residential real estate: price, time, and exposure are still very important. There are times, he states, "where it is simply something that is stopping it from being listed or marketed properly."

In the case of national corporations such as Walmart, Gil mentions that they generally have internally managed real estate teams but still, a few local agents are hired for the actual work on the ground. "You never know until you ask," is the way he puts it. "That applies to both commercial and life." Before he leaves, Kaleb wants to know from Gil what he would like to see happen in Joplin in the next ten years. Gil chuckles and replies, "That's a really good question - maybe have me back next time for that one."

After a little banter about Ferrari dealerships, he ends up thanking the audience for their support throughout his career. "It's always cool and always interesting when something new comes to town," says Gil, "it just depends on who's interested." 

Listen to the Episode

Catch the full conversation on The Main Mike Podcast, available on all major platforms. If you’re interested in learning more about real estate give us a call at 417.540.5799 or click HERE to get in touch.