(n) the tendency to search for, interpret, favor, and recall information in a way that confirms one’s preexisting beliefs or hypotheses, while giving disproportionately less consideration to alternative possibilities.”
Confirmation bias is rampant across the corporate real estate industry. Tenants believe that the conditions in their building reflect the broader market. Landlords believe their buildings are better than anything else available in the market. Lenders believe they are offering the best terms. This is all exacerbated by the law of small numbers.
As a broker, part of our job is to see through these biases and help the principals agree on terms. This requires patience, data, and empathy. If you can understand what’s motivating the principals, you can help them see through their bias and understand what it will take to get a deal done.