January 27, 2021
It is often said that the keys to success in any business can be derived from a thoughtful review of the essential practices that have led to success in the past. Simple right?
Today, as we begin to emerge from the grips of a global pandemic, there has never been a time when this has been more true. To be sure, most businesses, and specifically key retail markets, have been dramatically altered – some forever. Unfortunately, while many businesses have not survived, some have gone into an unknown period of hibernation, and still others have altered their business models to adapt to changing pandemic protocols. An unsettling time for so many, but at the same time an opportunity to reflect on where commercial real estate markets might be headed, and importantly how CRE firms can adapt. In this spirit, and looking ahead to economic “re-openings” around the nation, the following represents some bedrock ‘pillars for success’ in commercial real estate to help guide the way forward:
1. Leverage Deep Market Knowledge: It takes years to build a deep knowledge of a trading area, and thus it is essential to leverage it as a strategic asset, which allows for the implementation of bespoke market optimization plans for clients, and also the ability to roll out new retail locations that maximize sales and profits. In a nutshell, deep market knowledge enables commercial real estate firms to better partner with their clients in a consultative manner; creating value, building trust and planning an approach that is tailored to the exact needs each client.
2. Your Network is Everything: Another key asset that commercial real estate businesses need to focus on is maximizing their firm’s network of retailers and brokers to effectively and strategically lease and/or sell exclusive listing in a trading area. Like a garden, your network needs to be tended regularly in order for it to bear fruit. By peeling off 10% more time per week to connect, reconnect or build new aspects of you network, your firm can unlock a key growth driver that is often overlooked.
3. Become an Essential Resource: Being “essential” to your clients is all about creating value – plain and simple. To become their “Go To” resource in any trading area, commercial real estate firms need to examine how they are creating value across all of their client interactions and communications. Ask yourself: Are we providing insights that are relevant vs. your competitors? Are we offering communications and technology that makes it easier for clients to engage with your firm? Does your firm express a point of view and take a “consultative approach” to the business of your clients? By answering these questions, any commercial real estate firm can begin their ‘value creation’ journey, and do so in a way that is rewards existing customers, welcomes new customers and attracts prospects, like never before.
Author: The Pillars of Commercial Real Estate Success in 2021Dominick Musilli, Managing Partner