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Developers Should Be Forming Longer Strategies

USC Lusk Center chairman recommends developing a 10-, 15- or 30-year strategy to mitigate against obsolesce in new construction.

By Kelsi Maree Borland | kelsimareeborland | Updated on October 09, 2017

Emile Haddad Emile Haddad

Technology is rapidly changing, and it will shape future developments. This can be a precarious situation for developers breaking ground today and delivering into a market several years in the future. While one solution is to encourage government regulations that will allow developers to adopt new technologies into development projects, another is for developers to adopt multi-decade strategies and development projects. Emile Haddad, the new chairman of the USC Lusk Center and CEO of development firm FivePoint, recommends developers look out over 10-, 15- and 30-years.

“Our company is different than most companies,” Haddad tells GlobeSt.com. “We have a strategy that has an outlook of three decades. The assets that we are working on today, we started on them 20 years ago—and those are assets that we’ll deliver in the next 10 to 20 years. Because we are looking over the long term, we rely more on demographic shifts and technology that is going to change the way people behave. We look at more long-term trends to be informed. The lifespan of a typical developer is two to five years; ours is 20 to 40 years.”

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