2009 - No one takes a New Year lightly

The real estate industry is facing turbulent times.

It matters little now what 2008 was or what you think 2009 should be. But I can tell you this - there will be more fireworks. (Hope you like the pic of my old home town)

The fact is, what’s unfolding in the marketplace is nothing like you or anyone else could have ever imagined a few years ago.

As a result those that are going to survive and prosper must implement new strategies, new business plans and new revenue models.

Those who don't...................

I’m making a major shift on what I will be focusing my energy and efforts on in 2009.

What are you going to do differently this year?

In this financially constricted and challenging time I have a new strategy that will enable my clients, contacts and prospects to save a lot of money and improve the valuations on their buildings and their company’s balance sheets.

I will get in to the specifics more next time.

One thing I know for certain about 2009 is that no one can recycle or reuse wasted time, wasted energy or wasted money.

The Truth about your Marketing

People judge you now faster than ever.

They form opinions about you and your project before you ever see them.

In this digital world they judge your project by the website alone.
Prospects will make multi million dollar decisions on what buildings to go see and what to miss based on your digital presence alone NOT on the how good the actual building is.

Sure not all of the time but do you want to gamble on what the percentage is by trying to save on the place/website where they form their first impression? - and where they have their first contact with you?

Do you realize that the paradigm has shifted? The consumer gets to make an opinion before he ever sets foot in your project, before he ever meets your sales person.

So what is your digital presence saying about you? about your projects?

And who is helping you get that piece of your business not only right but head and shoulders better than your competition?

What's their strategy to navigate this brave new 2.0 world?

Relaunching a Property Development

Re-launching a failed project should be done with a new team and a fresh approach.
A team that is untainted by the first failure.

Harsh words but true - however before you drop the axe on the old team, and before the new team emerges from their chrysalis you need to "harvest"the experience because what they learned is very valuable and can be helpful in the second launch and in the projects "next life".

Here are some but not all of the key questions that you would need to know before you “jump in”:

What are the costs and time needed to fix a product. (Yep -there may be few things that need to change)

What is the required capital investment to re-launch the product. (It is useless to think or say “well I’ve spent my entire marketing budget the first time and now have no money left”) Get creative – find a way to make it work for you and your new team.

What is the optimum pricing strategy (Painful I know because right now it usually means lowering not raising the prices but the market is now VERY different to the one in which you did your initial pro forma)

What is the current “appetite” of the different market segments to the re-launched product i.e. what are the prospects/consumers saying about your Studio’s, 1, 2, 3 Bedrooms, Penthouses, common areas, etc.

These questions and there answers will give you and your new team a better insight into

Why potential customers are not buying your product.
What the market segmentation is and what they now want.
Better understanding of what they value for each segment.

If I were running the re-introduction of [Property Development name removed] I’d run it like a product launch campaign, but with a few interesting (but profitable) variations.

· I’d change the product name to be more exciting, descriptive and different to what’s been used previously and what is currently out there.

· First priority would be an effective sales/informational website – with redesign and sales-driving content and new information.

· 2nd would be an informational blog that goes above and beyond what almost everyone else is doing. I would have streaming video content i.e. Vblogs from the Developer, Architect, GC, Interior Designer, Local Neighborhood Expert, etc. All talking about what is special and unique about this project and this location.

Why these two? Because they will cross-pollinate with each other by sending traffic back and forth to close more sales. Plus, the linking back and forth will drive you to the top of the search engines faster. All of that means is more sales.

3rd would be to have a new true “Blue Chip” brokerage firm put in place and replace the incumbent agency. They would focus on a “co-broker program” that gets it out and across all of their agents, branches and agencies in addition to a specific plan of attack to do that with all other competitor agencies.

Why? Because most sales are co-brokered and it is now all about how many people know and “get” your project.

It is absolutely useless to have just a handful of people who know it well – there is strength in numbers – make no mistake about that.
It’s not about “who you (your current brokers) know - It is about “How many people (brokers/potential customers) know you – AND it is now about how easily AND how much info that they can get beforehand.

Getting A Head Start with your Marketing Program

So why is there a picture of Jorge Perez and his new book at the top of my post?

Well I'll get to that in a moment.

But first off I am always shocked that not every developer in NYC is not taking advantage of the CPS-1 program that allows you to start testing ad marketing your project before your Condo Offering Plan is approved by the Attorney General.

My only conclusion is why they don't is that they don't know what it is.

I know Jorge would use it - read his book and you'll see why I say that.

So for those of you who focus on the construction side of the process and aren't that into the marketing side let me give you a "heads up"on this program.

CPS1 is shorthand for Cooperative Policy Statement 1, and it sets out the Attorney General's rules governing how a developer may test the market for a new building before filing the offering plan, and, for that matter, even before construction is completed.

The CPS1 period, which lasts 120 days but can be extended for an additional 60 days: ''This is so Developers can advertise and take names of people who are interested, but they cannot take money. They can talk about price ranges, but nothing specific. No reservations can be accepted; no deposits can be accepted, and all advertisements must be approved by the Office of the Attorney General.''

I'm not an Attorney so have your counsel check it out for you - but here's the link in the mean time.

http://www.oag.state.ny.us/realestate/policy/Cps1.pdf

So what you say?

Well the sooner you can start building the Buzz about your project the better.

According to one of the greatest Property Marketers Jorge Perez (He's the Southern Half, Chairman, CEO of the Related Group) The first things/principles you have to do according to Jorge is:

1. Develop Awareness

2. Build Interest

3. Create Desire

He has a few more steps so buy his book - but you get the idea right?

These things take time, creativity, skill and money to execute - So let's make sure from this point forward your team knows how to get you a head start and give you every possible advantage in this changing marketplace!