Looking on the Bright Side;

or, Things to Do in Denver When It's Dead

Colorado Real Estate Journal, February 19, 2003

There are a lot of great things about the real estate business. One of them is that the real estate is always there. You can touch it, see it, build on it, remodel it, buy it, sell it, lease it, or trade it, in theory anyway. If things seem a bit slower than they were, don't panic. Think about ways to make the changes into opportunities.

Remember being so busy with so many deals that you couldn't ever stop to think? Is it possible you missed something? Could mistakes have been made? One way to spend some of that extra time at the office might be to develop a checklist for the perfectly documented deal, then go through files and closing books and follow-up reports from your assistant that you just didn't have time to worry about, and do some digging. If you find everything in order, you can breathe a sigh of relief. If you find issues, you might be able to correct them now before they become crises. Maybe your attorney will do a "legal audit" for you, maybe even at a flat fee. She might have some time on her hands as well.

Were you around during the late 80's and early 90's? Did you learn anything? What about organizing in-house seminars on workout tactics, or doing a newsletter to showcase your talents in turning troubled properties around? Dust off those workout skills. They may come in handy soon.

This is also a great time to be a tenant. Did your landlord refuse to give you a renewal option, or a right to expand or reduce premises size, when you entered into your lease? Would you like to make some changes in your deal? You are now a "bird in hand" and might get a more receptive audience if you propose, say, more time but less money. Contact a broker who specializes in tenant representation. If your current landlord is unfriendly, there's a good chance someone else will receive you more warmly. You might even get a buy-out of your current lease, or free rent during the time the terms overlap. Landlords are very motivated right now. This is obviously an opportunity for tenants.

Beware of false economies. You may want to slash your marketing budget, but if you do that, where will you find new business? Extensive layoffs may provide immediate relief from cash-flow problems, but be aware of other costs that will go up. How is morale among those who still have jobs? Has work quality suffered? Is the work getting done? This might be a good time to examine your human resources policies and procedures. There may be ways to add value for the people who work for you that cost you little or nothing. Your employees are probably worried and stressed out. Is there something you can do to give them tools to cope better? Don't just go through the motions if you don't mean it, and don't make promises you can't keep, but if you really care about the people who work for you, make sure they know it. Think about providing outplacement services and counseling for people that you have to let go. Handling human resources issues professionally, but in a caring, positive manner, can pay off in better productivity, more loyalty, and increased goodwill.

On a personal and organizational level, do some introspection and self-analysis. What do you most enjoy doing? What kinds of things get you excited about getting up in the morning? What produces the highest monetary return for your efforts? If you concentrate on doing what you really love and really know well, your work will be more personally rewarding, and you will be able to put more energy and intelligence into it, so the quality will be better. If there are things you don't like doing or aren't very good at doing, and your clients have needs in those areas, figure out how they can get those needs met effectively and economically. Form strategic alliances with people who provide those services. Get to know exactly what your clients' problems are, and use your skills, and your network, to help solve their problems. If you do find ways to add value, you will be rewarded.

Commercial real estate is not just buying and selling "stuff." Every project is unique, and presents its own issues and challenges. That's probably what you like about this business-it gives you a chance to use your whole brain. Real estate is also about relationships. If you have some extra time, if the deals seem fewer and farther between, take heart. As Brenda J. Dohring, publisher of an on-line real estate newsletter called RealWired, said in a recent issue, "now is when you give time to your clients that you never could when you were 'swamped'. Creating ways and systems for staying in contact and really understanding your clients' business is what will earn you the right to do business with them in the future. It may also earn you the right to be cut some slack when something goes wrong, which always happens when you're really busy. We all know that uncertainty keeps people from making decisions, but have you given thought to how valuable you become if you can help lower a good client's uncertainty? Work hard with your clients on what they really need and forget the 'what you want to sell or what they might like to buy'. You and your client will both have a much more certain future!"