ARE YOU ADJUSTING TO MARKET CONDITIONS?
Times are tough, as evidenced by companies posting record losses and issuing pink slips, and with economists warning of a recession (or claiming we're already in one) it doesn't look like things will get better anytime soon. In times like these, many who tend to concentrate in one area or on one business type find it necessary to adapt in order to survive. Fully half of our poll respondents replied that they were branching out into other areas in order to cope with current market conditions. The other half (presumably those who were already dealing with diversified portfolios) claim they're doing nothing, because they're doing just fine so far. Not a single respondent says they've thrown in the towel, proving that this community won't go down without a fight. Stan Kurzweil, senior vice president of Colliers Houston & Co. discusses the necessity of diversifying and concentrating on fundamentals when the going gets tough:
"The key is to be very nimble. Right now I'm selling churches, and I'm selling properties to people representing medical users. I'm also representing industrial properties, subleasing office space in prime areas and doing retail in Newark right by the Devils Arena. It's difficult in times like these to focus on just one area.
"The fundamentals of this business haven't changed; you're still doing the same things, you just have to be more diligent in doing them. You have to stay very close to your customers and listen rather than talk and try to be creative and solve their problems. The current weakness in the economy is causing more problems for both large corporations and small companies.
"Right now I'm more inclined to get an exclusive on a listing for a small industrial property in an upscale area. You're more likely to have a successful transaction with that than you would with office space in a market that has maybe a 35% or 40% vacancy rate.
"But these are difficult to find, and the demand is great, even though the velocity isn't the same as it was before. You have to be on the lookout for them. You have to be more active with your contacts and brokers and the companies you do business with that can refer you to other businesses. You would do this when the economy is normal, but now you have to do it more and do it better.
"People trying to buy properties are having trouble getting financing, and tenants trying to lease office space are concerned about how long those leases should be based on their current business model. All these things make the life of a commercial realtor more challenging.
"People who have been in the business longest have seen these cycles before and have learned what to do and what not to do. You have a different basis, a better foundation. If you're new in the business, you may not be as adaptive in coping with the difficulties, and you might not have a book of business you've built up over a long time.
"You have to have more empathy for people and try to advise them and protect them so they don't make decisions that could hurt the company and hurt themselves. All of this complicates life, and you have to be on top of your game and help people cope. If you don't have empathy and understanding, you won't be very effective."
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