Despite early optimism on how 2024 would shape out, real estate investment companies continue to navigate uncertainty and challenges in the current real estate market. With transaction volume and revenue growth being at the top of most real estate investment companies’ strategic objectives, how can we turn the tides to make this challenging environment work to our advantage so that our organizations are able to push objectives forward and meet goals?
The simple answer is that organizations need to ‘look within’ to assess what areas they can control in order to compensate for those conditions they cannot control like the current state of the market. Some areas that can get lost in the transactional shuffle when business is booming are Operations, Marketing, and Human resources—all departments which when working cohesively, can propel a company to its next level.
Operations is considered the central point of any business as its responsibility is to oversee all other factions of the business. A decline in transaction volume can allow an organization to take a pulse of what each department is working on and align goals to ensure all departments are working together towards the same Company’s goals versus solely focusing on their own. For example, if a company objective is to increase portfolio value by 20%, what can each department do to help it achieve that goal? In busier times, this responsibility would solely befall the acquisitions or investment team, however what other departments can pitch in so that the onus isn’t solely on one department? By establishing clear goals and delegating responsibilities to the entire organization to achieve them, the probability of success is much greater because everyone is on the same page. When teams are working towards common goals communication, productivity and engagement improves, and silos are eliminated resulting in more efficient operations and company performance overall.
It might seem counterintuitive, but Marketing is another area that can deliver a strong return on investment (no pun intended) to your company during times of slower activity. Since marketing tends to be synonymous with spending, it’s usually the hardest hit when companies begin tightening their belts however, there doesn’t always have to be a hefty price tag associated with your marketing efforts. Once you crack the marketing code, the possibilities are endless and can be cost-effective. Some of the most creative and effective marketing campaigns have come from guerilla marketing tactics which can prove fruitful for any organization. Current trends across industries include blogging, podcasts, videos/reels, and thought leadership, which are all valuable and creative outlets for investment real estate companies who have proprietary social media and digital platforms since they’ve essentially all been paid for or free. The great thing about brand marketing is that it can touch every part of your organization and every part of your organization can contribute to a company’s marketing efforts thereby promoting company collaboration and engagement.
We all know that a successful company is only as successful as it’s team, so why not use downtime to focus on developing your team to ensure it’s poised for greatness once the reins loosen up in this market? Pushing high-level HR initiatives such as career development or management training, are great ways for employees to feel motivated, appreciated, and most importantly valued which will do wonders for motivating some of your team’s biggest superstars. Managers who demonstrate appreciation for their employees by taking the time to listen and help them set actionable development/career goals will inspire employees to do their best work.
If budgets allow, team building, philanthropy, and cross-functional partnerships are great examples of how your company can move the HR and Operations needle to drive stronger business practices and ultimately a stronger team. To that end, schedule team lunches, encourage cross-functional brainstorming sessions, and revisit existing policies and practices to promote a more integrated approach to how you do business and ultimately foster greatness.
Navigating the commercial real estate industry post-covid has been, and will most likely continue to be, a whirlwind for a while but it doesn’t have to be a death sentence. Companies that embrace an entrepreneurial spirit and dig beneath the transactional surface are guaranteed to stay ahead of the curve and put themselves in a winning position once stabilization arrives. The best practices established during slower periods will strengthen the foundation of your business and make it stronger. If you can deliver strong results during uncertain times, imagine what your team can accomplish when its “go” time?
Comments