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The lessor is primarily employing “property specific” permutations of Bill Effros’“5 Day Sale” approach as developed and described in his book “How to Sell Your Home in Days.”

As Bill clearly articulates in his book, there are many types of auctions. Traditional “Outcry” Auctions where people gather at a given place and time to bid competitively for a given property or item. These are where an auctioneer at a podium in front of a group of bidders, speaking quickly with dexterity and enthusiasm, generates competitive excitement. In the end, the gavel comes down and a winner – the “high bidder” is declared. Traditional outcry auctions can be held as an “absolute” auction where the highest bid gets the auctioned item, or with a “reserve” price where the item will be sold to the highest bidder as long as it exceeds the minimum “reserve” value.

In his book, Bill also explains that the traditional historic approach in America to leasing property employs a slow version of what is know as a “Dutch” auction. Under the Dutch Auction methodology, a given property or item is often priced conservatively above its true market lease rate and if unleased at that conservative price point, the lease rate is then reduced until such time that the property appeals to a given “bidder” (lessee) and is then leased. The school of thought on this methodology implies that in leasing, this leads to lower lease rates. In our opinion, this is the rationale for much of the success of Bill Effros’ 5 Day Sale methodology.

Bill’s approach involves the marketing of a “subject lease auction” through direct consumer channels and advertising the property at an aggressively low beginning “lease rates.” The aggressively low beginning lease rate is designed to attract as many given real estate lessees in as short a period of time that are actively seeking to lease space in their market(s) similar to the “subject property” in both type of home and geographic trade area. 

In this way, “real lessees” identify available space for lease that meet their property profile, and by inspecting the property along with other potential buyers in “real time” they are able to competitively bid for the right to lease the “subject property” in one day. This approach often results in a timely lease of the “subject property” by compressing the property leasing cycle over traditional methods and results in a true market lease rate that works for both the “able” lessee and the “willing” leasor in a free and competitive market at a static point in time.