The Hidden Potential of Strong Collaboration in CRE
Feb 28, 2022
In the fast-paced world of commercial real estate, time is money. Every decision carries a price tag, and poor collaboration is usually the silent profit killer.
Did you know 87% of executives perceive misalignment between real estate and business goals?
Protracted Decision-Making: When key stakeholders fail to collaborate effectively, decisions get stuck in limbo. Lease negotiations, property selection, and approvals all suffer delays, costing you precious time and resources.
Missed Opportunities: In today's competitive landscape, prime real estate opportunities are fleeting. Failure to collaborate can result in missed chances to secure the best locations or improve unit economics for the underperforming ones, potentially costing you millions.
Poor space productivity: Without collaboration, you may end up with spaces that don't fully align with your needs. A great rent per square foot does not necessarily mean it's a lease worth renewing. Did sales layer data over it to see per-square-foot productivity?
Rising Costs: Inefficiencies caused by poor collaboration can lead to a lack of awareness of indirect costs and the real cost of the space. Rent may be great, sales may be decent but the utilities may be wiping out the profits and only the store managers or operations team may be sitting on those numbers.
Reputation Impact: A reputation for sluggish decision-making can deter potential partners, clients, and investors. Collaboration challenges can harm your image in the industry. Ever missed out on a great deal at a Grade A mall because the asset manager views your company as slow to decide?
Collaboration isn't just a buzzword; it's a cost-saving strategy. Efficient collaboration means faster decisions, better space utilization, and more profitable opportunities. It's an investment in your success.
Here are some quick tips:
Clear Communication: Keep the communication channels open and crystal clear. Don't leave room for misinterpretation.
Tech Tools: Embrace technology for easy document sharing, reading lengthy legal documents in simple English, managing projects like lease renewals on task boards, and instant messaging. Software like Bryckel can be a lifesaver.
Team Huddles: Regular team meetings help everyone stay on the same page. Share updates, insights, and challenges.
Defined Roles: Make sure everyone knows who's responsible for what. Clarity avoids confusion.
Feedback Loop: Encourage feedback from your team and landlords. This can lead to better solutions and innovations.
Document Organization: Keep lease documents well-organized and accessible to all team members. Bryckel does that for you.
Training: Invest in training and workshops for your team to sharpen their collaboration skills.
Celebrate Wins: Acknowledge and celebrate successes. Positive reinforcement goes a long way in boosting team morale.
Flexibility: Stay open to adapting your collaboration methods as the real estate landscape evolves.
Stay Positive: A positive atmosphere fosters better collaboration. Keep the energy upbeat, and it'll reflect in your teamwork.