The 10 Commandments of Network Building by Duke Long
Duke is one of the top thought leaders on how commercial real estate (CRE) and online social networking should work together… and where they don’t. HE posted this on his blog 10 Real World Examples of How I Built My Commercial Real Estate Network and in an ironically karmic sort of way I just saw it on Klout’s homepage today. It is so good and to the point in true Duke style that it would be a great guest post. I believe these steps work online and off, in CRE or any other industry so take it away Duke:
1.What are the relevant commercial real estate communities of interest? What are the needs wants of the participants within these communities?
I started simply looking for the groups and associations that I already had and affiliation with. My state commercial board. NAR because I had already made several connections over the years. CCIM,SIOR,IREM,BOMA etc. Why connect? Hell, why go to the meetings and get on the conference calls, why volunteer? I needed build and cultivate a network. Online connection was a revelation. I would listen learn and ask simple questions. The needs and wants were pretty obvious.People wanted to connect to make deals. But then something interesting started to happen.Human interaction.
2.Participate where your presence is advantageous and mandatory, don’t just participate anywhere and everywhere or solely in your own domains (Facebook,LinkedIN, Twitter conversations related to your brand, etc.)
Seems pretty obvious does it not? Let me give you and example. I do everything in my power to eliminate and and all feeds emails discussions and spam from lenders. You say What? We need that lender connection. Not me. All and I mean all they do is spam and pitch. How does this help me or my clients. You would think lenders pitching brokers is a natural fit. Wrong. Go find the client before they get to me and leave me the hell alone. The “we only are taking clients in the 30-75 mil bracket ” pitch is total bullshit. So, your are in commercial real estate who and where should you be ? Start-ups, Logistics Companies, Medical Associations,Industrial Data Centers…let your brain flow.Maybe some other brokers also they need to know what your stuff is but not in a spammy way!
3. Determine the identity, character, and personality of your Read more
What drives changes in operating expenses (OPEX) for CRE and Multifamily? Nice research from CBRE Econometric Advisors
Filed under: Commercial Real Estate, Multifamily Investments
As every landlord knows, operating expenses (OPEX) are an important element of commercial real estate investment performance. In spite of the important role OPEX plays in investment performance, there is very little research that analyzes the structure of these costs or identifies what drives the differences in these costs across markets. This article aims to share the latest findings on the drivers and structure of OPEX.
… That industrial variable costs have a lower elasticity than those of the other property types accords with what investors in this asset class generally experience: that these properties are usually cheaper to operate. A perhaps more surprising finding is that the elasticity coefficients for office, multifamily, and retail—property types with significantly different operating structures—are fairly similar to one another. We are conducting further research to better understand this finding.
See the whole piece here: What Drives Operating Costs in Commercial Real Estate?
Getting Inside the Head of Today’s Online Renter, multifamily report now available.
Filed under: Commercial Real Estate, Multifamily Design & Development, Multifamily Investments
From my friend Heather over at Behind The Leasing Desk Consulting: “fact: I ♥ Satisfacts! Check out their new report on the mind of the online renter for some great insight into what your potential residents are thinking.”
From Satisfacts: “We asked, and now it’s ready for YOU. Getting Inside the Head of Today’s Online Renter is the most comprehensive analysis ever conducted in the industry on the impact of technology and social media on apartment marketing and operations.” Get the report here
Multifamily is best Commercial RE sector but…. Video from Starpoint CEO Paul Daneshrad
Filed under: Commercial Real Estate, Multifamily Investments
Where is your apartment market in the cycle? Latest Multifamily Market Cycle Charts now posted via Glenn Mueller, PhD.
See the details and charts for the other CRE sectors here:
FHA Makes Strides on Speeding Up Its Multifamily Tax Credit Loan Process.
Filed under: Multifamily Investments, The Economy and Current Affairs
[The FHA] is ushering in the long-awaited Tax Credit Pilot Program, mandated by the 2008 Housing and Economic Recovery Act.
The pilot program aims to drastically speed up the processing time of FHA-backed deals that use low-income housing tax credits (LIHTCs). In the past, LIHTC developers had difficulty using the FHA—the LIHTC program carries strict deadlines, and affordable housing owners and developers just couldn’t wait around for the FHA’s notoriously slow turnaround times.
This new program aims to fix all that. “Expediting our delivery system is a big agenda for us,” says Head. “And it’s one of my biggest priorities.” See the whole MFE Mag article here: FHA Makes Strides on Speeding Up Its Tax Credit Process
When long time contrarians flip is that confirmation of a market top? What about in multifamily?
Filed under: Commercial Real Estate, Multifamily Investments, The Economy and Current Affairs
Read this week that well known stock market perma-bears have gone bullish and that struck a nerve in my contrarian’s contrarian heart. This morning I read a post on the Joseph Bernard Investment Real Estate blog that really got my attention. Here’s what stopped me in my tracks:
In three decades working in and studying multifamily, Johnsey, president of Dallas-based research firm Axiometrics, has developed a bias toward an outlier’s view of what’s happening and what’s coming next. This time, though, it’s different. Strangely, he’s finding no counterpoint position to argue.
“Everything is just ripe for a robust apartment market,” Johnsey says. “I’m always looking for problems. But these numbers are just some of the strongest I’ve seen.”
Johnsey has company aplenty. Market researchers, Wall Street analysts, REIT executives, big multifamily players, and small alike can scarcely quell optimism over practically a sure bet for a bountiful 2012. [Emphasis mine]
Regular readers and students of the financial collapse will instantly recognize the first highlight as echoing the title of probably the best book ever written on the subject, “This Time Is Different: Eight Centuries of Financial Folly”. Authors Rogoff and Reinhart have researched and written (exhaustively) about how many times that sentiment has proven exactly wrong. If you haven’t read it, check it out on Amazon by clicking on the book image in the ‘Learning From History’ section on the right of this page.
Granted the rest of the article goes on to lay out the great fundamentals the national apartment market is currently enjoying and further that short of institutional grade properties in core markets multifamily is a very local business (and properties are more reasonably priced). But still…
What are you seeing in your market?
US Multifamily expected to reach 95% occupancy in 2012 says AxioMetrics President
Filed under: Multifamily Investments, The Economy and Current Affairs
See the article here: Experts Say U.S. Apartment Market Continues to Roll
Multifamily Marketing; What can you learn from the big players?
Filed under: Multifamily Design & Development, Multifamily Investments
“Not all residents want the same thing,” Conway says. “Listening to what our consumers want and wrapping them in a brand is going to help us grow.” AvalonBay hopes to attract younger consumers to its metropolitan “AVA” buildings… designed to be more youthful than other high-end AvalonBay buildings because they’re targeted to Gen Y residents, many of whom live with roommates in smaller, urban-style apartments.
Are your properties targeting specific demographics? Could you attract more tenants by marketing to a specific lifestyle? See the whole MFE article here: AvalonBay Launches Brands for Gen Yers, Suburbanites
Multifamily Sales Close Out 2011 on the Rise, Lead by Garden Style.
Filed under: Multifamily Investments, The Economy and Current Affairs
A recent report from New York–based commercial real estate research firm Real Capital Analytics (RCA) reveals that apartment sales figures closed out 2011 on a positive note. The firm’s “2011 Year in Review” report shows that the fourth quarter of 2011 netted $16.6 billion in sales, the highest quarterly volume racked up since 2007. This marks a 16 percent increase from the previous quarter and a 24 percent bump from fourth-quarter apartment sales in 2010. Among the more optimistic data revealed in the report was the rebound of garden-sector sales.
Garden properties ended up 47 percent ahead of the 2010 figures, and it appears that the sales momentum experienced in the fourth quarter will carry over into the first quarter this year. “Given the stable cap rate environment for garden properties, compared to sinking caps in mid-/high-rise, that trend is likely to continue in 2012,” projects Thypin.
See the whole AHF article here: Apartment Sales Close Out 2011 on the Rise
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