GlobeSt.com: Which industry trends are top of mind for your clients?

Diggs: The way our clients are interacting with everyone within their real estate businesses and across the entire industry is changing because of technology. Everything from the way they collect payments to operating their entire business is increasingly digital, and it’s becoming an expectation among key industry stakeholders, as well as customers. Our clients want streamlined and seamless processes that help them save time and money. As younger generations increasingly enter the business, they’re putting down pencils and pens, and looking for digital processes that help them hire contractors, manage properties and make acquisitions.

Succession planning is also a huge focus for some of our clients, as they transition their businesses to the next generation. Having the right plan in place that addresses a company’s unique needs and potential challenges is necessary to help maintain a property portfolio throughout the entire transition process.

Clients are also looking closely at the interest rate environment, as rates have moved significantly lower since the beginning of the year. These rate movements affect investment decisions, borrowing capacity and the ability to refinance.

Finally, rising construction costs continues to be top of mind for our clients, as they look to rehabilitate, update or even add additional units to their buildings. New construction and transaction activity remain very strong particularly in many parts of the East Bay, San Jose and Sacramento.

GlobeSt.com: How should San Francisco real estate players be preparing for the future?

Diggs: It’s difficult to predict the future, but our clients are setting themselves up to achieve long-term success in an uncertain and always changing environment. They aren’t looking to over-leverage, and they look to maximize rents, while minimizing expenses. They can do this by embracing technology to improve operations and increase efficiency, managing their debt and expenses in order to build the liquidity they need for the long term, and focusing on succession planning to make sure the real estate organization is ready for the future.

Entering the second half of the year, real estate developers and investors should consider how they’re effectively managing their growing portfolio to help drive their businesses toward the future, especially as we get closer toward the end of the cycle. Maintaining a strong balance sheet, sufficient liquidity and working with the right industry partners who know the local market well and can provide access to a wide range of services and solutions are key to helping achieve long-term success.