While commercial real estate markets are not static, I’m always surprised by the number of Real Estate pros who operate as if they were. As the landscape around them changes, rather than understanding and adapting to new market drivers, many just prefer to pretend as if it’s business as usual. It is those practitioners that adapt to the fluidity of the market that become innovative market leaders, and who thrive during even the toughest of market conditions. Likewise, it is those practitioners who refuse to change with the times that push themselves into irrelevancy, and eventually become self-inflicted casualties of the weeding-out process.
While it might be obvious that the commercial real estate industry took a big hit, what may not be so obvious is that during times of adversity come the greatest opportunities. Those who thrive understand this principle, and as a result, they will be the ones who will reap the benefits. They adapted their business models, reengineered their business practices, and implemented new initiatives while their brethren sat on the sidelines whining and complaining. Rather than talking about about constricted capital markets, they sought out the investors and lenders still doing deals and restructured transactions to fit the changing guidelines of active capital partners. Rather than complain about transaction bottlenecks, the smart players began to work with new partners who understood that when values are low its a perfect time to get in. They key to success in down markets is to participate in the present while looking toward the future, but refusing to allow yourself to live in the past.
My encouragement to you is to not buy into the negative rhetoric…don’t offer excuses – don’t travel the path of the pessimist. Rather build your reputation on creative thinking and innovative practices .As a consultant friend of mine is fond of saying, “chaos only exists until you decide to restore order.” I wish all of you continued success ! (credit, k.maggicomo,spv)