Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.
Issue link: http://cire.epubxp.com/i/82355
time, George Smith Partners recognized that it needed to change its focus from sav- ings and loans to the emerging Wall Street conduits and commercial mortgage-backed securities market. As one of the fi rst com- panies in the industry to arrange CMBS fi nancing, GSP built strong relationships with these new capital sources, many of which have become long-standing business relationships. Communication Is Key Technology evolves almost as quickly as the markets change. Commercial property owners and investors must harness new technologies and stay connected with cli- ents, lenders, and other allied professionals. Ongoing communication and use of the lat- est technology is vital to retaining growth during a recession, as well as for staying at the forefront of the changing market. For instance, in an eff ort to better mar- ket its services to clients and capital provid- ers, GSP created a weekly faxed newsletter focused on insights into critical and relevant issues aff ecting the commercial real estate and fi nancial industries. Over the years the subscriber base has grown; the newsletter is no longer faxed but now emailed to more than 100,000 recipients each week and has become a resourceful, invaluable tool for cli- ents and industry constituents. Company leaders must identify the com- munication tools that best suit their industry niche and client base. For some, the ongoing conversation and visibility of social network- ing sites such as Facebook, LinkedIn, and Twitter can be far more benefi cial to business development than more-traditional forms of communication. However, companies must strike a balance between traditional market- ing and current communications techniques to remain successful. Watch the Road Ahead Predicting future market cycles is a diffi cult task, with unexpected sea changes in the capital markets as well as the macro and micro economies that aff ect real estate. Yet it is imperative to focus on the road ahead and try to look around corners to anticipate what is next. CCIM.com September | October | 2012 15 Keeping a watchful eye on emerging patterns can help owners and investors better understand real estate cycles and steer clear of danger. In the short term, November's U.S. presi- dential election is likely to have an impact on the economy, employment, regulation and taxes, and the fi scal markets, all of which impact commercial real estate. In addition, Europe's fi nancial crisis will continue to have domestic economic repercussions. In the long term, the future of commer- cial real estate largely depends upon the economy and job creation over the next decade. T ere are some promising indica- tors that the economic train is on the right track: Capital markets have become more aggressive, and lenders and equity sources are actively seeking solid commercial real estate assets to fi nance. However, the eco- nomic recovery remains susceptible to many global and domestic factors that are rapidly changing. As property owners and investors look ahead, it's wise to take lessons learned in the recent past and use them to strategize for the future. With the right strategies and tools, property owners can prepare themselves for whatever the market may hold in the years ahead. Gary M. Tenzer is principal and managing director of George Smith Partners, a national real estate investment banking fi rm celebrating its 20th anniversary. Contact him at gtenzer@ gspartners.com.