Creative Commercial Construction Companies Thrive in Any Economy

Apr 12, 2010     Topics: commercial construction industry, marketing tips

Craig Noble

Considering the precarious economy that the commercial construction industry is experiencing these days, it can be difficult to see the opportunities.  However, just like successful Wall Street traders make money when the market is moving (up or down), the same can be said for creative construction and real estate-related business owners and executives.  Skeptical?  Read on.  

The real estate market is not dead.  It’s not growing, but there is movement.  The activity surrounds banks that are taking properties back from owners that can no longer pay the commercial property debt.  And until banks loosen up their purse strings and make business lines of credit and construction loans accessible again, rising vacancy rates will perpetuate this change in ownership.  Sounds like more bad news, right?  Not necessarily.

Banks are not experienced commercial real estate owners – their business is evaluating financial risk and lending money to commercial real estate owners.  Generally speaking:  banks know good credit risk concerning locations and tenants, but they know little about how to manage buildings/properties, design/build enhancements, or how to attract good tenants.  Therefore, the opportunity for your construction or real estate-related business lies in your ability to get their attention with the help you can provide them in any of these areas.  Once you do, give them some free advice to validate your experience, then perform as promised for a fair fee.  Sounds simple, right?  It can be.

For example, a prominent full-service real estate developer here in South Florida had bank representatives lined-up to lend them money – until recently.  And with the economy stalling, they are now getting creative with their business development efforts by calling on those former lenders as their prospective clients.  Their pitch is simple: we can help you with design, renovations and property management expertise that will get your newly acquired buildings occupied.  This is a smart move for both sides, and strengthens their relationship going forward.

The above example is only one idea.  First, change your mind about the gloom and doom market we are in.  Then, let your creativity and execution pull your company through this difficult time.

Tags: commercial construction companies, commercial construction industry, commercial contractors, commercial real estate, property management