Archive for the ‘Commercial Real Estate’ Category

How to have a great convention

Wednesday, May 16th, 2012

I’m attending the International Shopping Center convention in Las Vegas next week and have been preparing for the convention since the first of the year.  I have found that in order for me to have a successful convention I must set a goal of what I want to accomplish and then devise a strategy as to how I will reach my goal.  Once I have a strategy in place I develop a contact list of people I’d like to meet with at the convention and start placing calls to see if I can set appointments.  I always make sure I have gaps between appointments so that I’m able to spend time networking with other attendees.  It’s pretty easy to strike up a conversation while waiting in line at Starbucks.  Additionally, I’ve found that attending the formal functions put on by the ICSC at breakfast, lunch and dinner offer plenty of opportunities to make new connections in the industry.

Convention days are long and hard, leaving me tired by the end of the convention.  But, once I’m back in the office the real work begins.  The contact information for everyone I’ve met must to put into a database and a short personalized email sent out.  If I haven’t received a response from the emails within a couple of days a follow-up call is placed.  As with any relationship, whether it is personal or business, it must be nurtured if you are interested in having that relationship grow.  It is through these relationships that new deals will arise.

I think it is safe to say that if you are interested in having a great convention you should prepare prior to the convention, work hard during the convention and follow-up after the convention.

Edward Boyle

CEO, Employing Broker

Katchen Company

Katchen Company, founded in 1962, is an integrated real estate company with its corporate headquarters in Lakewood, Colorado.  The company offers real estate development, redevelopment, property management, brokerage, consulting services, construction oversight and maintenance services to individual and institutional real estate investors throughout the greater Denver metropolitan area in Denver with satellite offices in Chicago, Las Vegas
and Miami market areas.

Lack of planning on your part does not require rushing by me!

Tuesday, January 10th, 2012

It is always frustrating to me when I plan my schedule so that I have time to comfortably make my commute from one appointment to another to only have one of the people I’m meeting with either not in their office, running behind with a meeting or otherwise detained so my appointment with them is delayed.  While my schedule does have room for comfort in it there is usually not enough room to overcome such delays.  I’m let with three options; I can reschedule the meeting for another date, reduce the scope of the meeting or try to rush through the meeting hoping to cover everything on the agenda.   Rescheduling the meeting means that I’ve wasted a couple of precious hours of my day, reducing the scope of the meeting will require that a follow-up meeting be scheduled and trying to rush through the meeting causes undue stress and more than likely a meeting that runs over and then requires me to rush through the rest of my day trying to play
catch-up.  The last choice is not an option.  Lack of planning on your part does not require rushing by me!

What would you decide to do in that situation?  Reschedule, condense, or rush?  If I’m meeting someone in my office and they were late I’d reschedule as I can always find small projects to fill my time until my next meeting.  However, if I’m
meeting at someone’s office I prefer to condense the content of the meeting and schedule a follow-up meeting.  If I don’t try to condense the meeting and reschedule instead I will have time that is wasted before my next meeting.  Not an
option to me, and besides, the more opportunities I have to meet with a prospective client the higher the odds are that I will get a contract.

A career in sales is difficult but rewarding.  If a sales person doesn’t control their meeting schedule they will lose opportunities or worse yet lose their reputation for punctuality.  In either case the end results is fewer closings and less income.  So it is safe to say that a salespersons career depends heavily upon an appointment management system.  When I was first entering the work force a Day Planner was the only option and it had a lot of shortcomings but the most annoying to me were the need to erase and re-enter changes within my schedule and the redundancy of having to write reoccurring appointment into each weeks plan.   Now there are several software packages that offer a wide array of options that allow you to link between your office computer, lap top and smart phone. It is easy to rearrange schedules, obtain confirmations for meetings, schedule meetings with multiple individuals and set up reoccurring events.  There is some technology that I wish never existed, but my appointment planning software is one piece of technology that I could not live without.

While appointment management software is important to a sales associate, the most important aid to a person just entering the sales workforce is a good mentor.  In my industry, commercial real estate, it is required that a sales associate work
under the tutelage of a seasoned professional for several years before that venture out on their own.  It is during this mentoring process that the associate learns the sales tools need to be successful.  The choice of real estate office and employing broker becomes vitally important as it will be the foundation of sales associate’s career. My suggestion to those now entering into a career in real estate is to interview a large number of firms and employing brokers prior to making a
decision and to remember that an employing broker must oversee the activities of all the associates that work in their office.  The larger the number of sales associates the less time the employing broker will have to mentor a new associate.  So make your choice wisely.

I sure that other industries’ have the same consideration, but a new entry will not be able to determine this without obtaining several interviews or taking getting meetings with successful sales associates.  Other options are to consult school and government placement offices to learn more about your chosen sales field: and, of course, research on the Internet.

If you are looking for a career as a sales associate in real estate in the Denver market, give me a call.  Just remember, when you get an appointment be on time, because a lack of planning upon your part does not require rushing by me.

Edward Boyle

CEO, Employing Broker

Katchen Company

Katchen Company, founded in 1962, is an integrated real estate company with its corporate headquarters in Lakewood, Colorado. The company offers real estate development, redevelopment, property management, brokerage, consulting services, construction oversight and maintenance services to individual and institutional real estate investors throughout the greater Denver metropolitan area in Denver with satellite offices in Chicago, Las Vegas and Miami market areas.

Watch what you wish for … you just might get it.

Tuesday, October 25th, 2011

This summer was unseasonably hot in Denver and at several points I heard people commenting that they couldn’t wait for winter to arrive so that it would cool down.  The cool down is about to occur with a snow storm fast approaching the metro area setting into motion a drop in temperatures by 50 degrees and 6 – 12 inches of snow left in its wake.  I’m already hearing the grumbling of people as they anticipate tomorrow’s morning commute and I’m sure those grumbles will turn into more colorful language as people shovel themselves out over the next several days.  This whole scenario reminds me of what my dad always use to say to me, “Watch what you wish for … you just might get it.”

Over decades of work I’ve seen the same type of events play out again and again in business settings. There is the troublesome client who we wish we’d never chosen to take on.  However, we’ve become accustom to the income their business bring to the bottom line and are unwilling to terminate the relationship.  One day, without notice we unexpectedly receive a call from this client who informs us that they are moving their business to a different company.  Shock turns to anger and is replaced by disappointment as we face the realization of losing the client.  Watch what you wish for … you just might get it.

A few years back the economy was moving so fast that we were overwhelmed with all the business and wishing that things would slow down so that we could catch our breath and enjoy the proceeds of our labor.  The next thing we know business is starting to slow down and we are elated at first only to become worried as business declines further and then panicked as business turns into a trickle.  Watch what you wish for … you just might get it.

Through the study of history we’ve learned that events repeat themselves and we are destined to face the same challenges and make the same mistakes if we don’t learn from them.  I believe now is a good time for business owners to look at their past business decisions and learn from them as we head into a new business cycle.  I for one have promised to work harder and play less during the next business cycle if I have the opportunity.  I’m wishing for the opportunity … I’m hoping I will get it.

Edward Boyle

CEO, Managing Broker

Katchen Company

Katchen Company, founded in 1962, is an integrated real estate company with its corporate headquarters in Lakewood, Colorado. The company offers real estate development, redevelopment, property management, brokerage, consulting services, construction oversight and maintenance services to individual and institutional real estate investors throughout the greater Denver metropolitan area in Denver with satellite offices in Chicago, Las Vegas and Miami market areas.

Are you fishing in the wrong pond?

Tuesday, October 18th, 2011

I was having coffee with a friend of mine the other day and we were discussing the economy and the effect it was having on our businesses.  The consensus between the two of us was that we were both having to work harder and the results of that work was far less productive.  We agreed that competition for business has always been stiff but in today’s economy it is even more challenging as there are too many people chasing too few dollars.  During our discussion my friend
told me about his sales manager and the manager’s penchant for using analogies and how one day during a sales meeting the manager asked the sales staff if they were fishing in the wrong pond.  I’ve blogged before about how in business you should strive to be a large fish in a small pond, so the analogy struck a chord with me.   What the sales manager was alluding to was the fact that if there are too many sales people fishing in your pond of customers you should find yourself a new pond.

To be a successful sales person you must work hard but you also must work smart.  Working hard is getting into the office and sitting down at the phone and making the number of calls necessary to fill your appointment book.  Working smart is creating a unique niche for yourself in the marketplace where there are few other sales people.  When I first entered my career in real estate I found it difficult to get clients and I stumbled upon the idea of a unique niche merely by accident.  Sitting at my desk and pondering my fate on day I received a call from a lady who was looking for a retail space for her nail salon.  While there is a nail salon in almost every retail center today, back then it was a new idea and not very well received by property owners.  Making it even more difficult for the lady was her difficulty with English.  I found her so difficult to understand that I requested that she come to my office so we could talk in person as I felt by watching her speak I might be able to understand her.

Later that day a young Vietnamese lady came into my office and introduced herself as the person I’d had the telephone conversation with.  She was almost in tears as she proceeded to tell me how she had called property owners directly and they had been unwilling to work with her.   She then started to contact real estate agents but none that she had spoken to were willing to work with her until she had called me.  Sitting her down in the conference room and talking with her further I began to realize that she had a great idea but needed a business plan so she could sell that idea to the owners.  Over the next several days we repeated the face-to-face meetings until I had all the information I needed to prepare a business plan for her.  Within less than a week I was able to secure her a retail location and shortly thereafter she opened for business.  It wasn’t more than a day after her grand opening that I received a phone call from one of the lady’s friends who was looking for space.  That phone call lead to another and yet another until I had a steady stream of Vietnamese clients.  I had found my first niche.  I didn’t understand Vietnamese and they understood little English but with patience and persistence we worked together to make their dream of owning a business a reality.  Today, over twenty years later I still have some of these original clients coming back to me, their English is better and I still don’t know Vietnamese.

Is your business is challenging you?  If so, work smart and find a new pond to fish in.

Edward Boyle

CEO

Employing Broker

Katchen Company

Katchen Company, founded in 1962, is an integrated real estate company with its corporate headquarters in Lakewood, Colorado. The company offers real estate development, redevelopment, property management, brokerage, consulting services, construction oversight and maintenance services to individual and institutional real estate investors throughout the greater Denver metropolitan area in Denver with satellite offices in Chicago, Las Vegas and Miami market areas.

It’s no big deal

Tuesday, September 13th, 2011

I was listening to the news the other day and heard the reporter exclaim that the stock market had dropped another 7 percent in August and cost investors over one trillion dollars.  He went on to report on other news without skipping a beat, like it was no big deal.  One trillion dollars, that comes out to $3,333 for every man, women and child in this country.  Maybe to some people one trillion dollars isn’t a big deal.  Take the US government and our political leaders, for instance, who just approved a federal budget deficit of 1.2 trillion dollars like it was no big deal.  Oh sure, there was political posturing to make it look like it was a big deal but that was all a show to save their political career in the next election cycle.

To put a little perspective on what a trillion dollars is let’s look at the guy on the street working his minimum wage job.  He would have to work 66,312,997 years without spending a penny to earn one trillion dollars.  What’s that you say, he could invest the money and with interest from investments he’d be able to accomplish it much sooner.  Oh, that is true unless he was unlucky enough to have his money invested in the stock market when it lost 7 percent in August.  Just think, if our imaginary guy could have live long enough to earn that trillion dollars and invested it into the stock he certainly would have died of a broken heart when he lost it all in the stock market.

Don’t get me wrong, I believe that over time investments in the stock market can produce profits.  However, I don’t believe that it is wise to place all your investment dollars into one investment vehicle.  Even the talking heads on television speak about diversification, but they talk about diversifying into stocks, bonds and paper and don’t mention other types of investments.  What other investments are out there?  My favorite investment is real estate.  Okay I have to disclose, just like the talking heads make their living form those people who invest in the stock market I make my living from those people who invest in real estate.

But real estate is a different type of investment from those traded in the stock market.  While you can invest in a REIT, a publicly traded company that invests in real estate, you can also invest in a single property with or without partners.  Beginning real estate investors are those people who choose to purchase a home rather than pay rent.  More advanced real estate investors purchase duplexes, apartments, office, retail or industrial buildings.  The beauty about the more advanced real estate investments over the beginning home purchase is that with the home purchase you as the investor are working each day to earn the money necessary to pay off the loan on the property where with the more advance real estate purchase your renter is working every day to help you pay off your loan.  Just think, rain or shine, day after day, week after week, month after month, and year after year whether you are working or not your renter is so that you can pay your loan.

There is the argument that the same thing is occurring when you are invested in the stock market and while that is true, try to go out and place your hands on one thing that you own when invested in a stock.  Let’s say you own shares of Coca Cola, can you walk up to any one item used in the bottling or delivery of that product and say that it is yours.  No, not really because your investment is in the earning potential of that company and not its physical assets.  With real estate you
can drive by that shopping center you have an ownership interest in and actually say that X percent of that center is mine and while today I’m getting rent from the tenants one day my investment group will sell it and I will get my share of the sells proceeds.  Most certainly the price the property is sold for will be much higher than the day it was purchase.  Try doing that with your investments in the stock market.  No big deal you say.  I say, think about the trillion dollars.

Outsourcing … it’s not always about sending jobs overseas

Tuesday, September 6th, 2011

Outsourcing has become one of those words that raise the hair on the back of union workers necks.  Politicians have given the word outsourcing a bad rap as they blame each other for taking away American jobs. While outsourcing is about saving money it isn’t always about sending jobs overseas.  Outsourcing is one way for a small firm to compete with much larger firms.

My firm’s commercial real estate development division is a good example of how outsourcing can be used to save on overhead and still compete with much larger developers.  As a boutique firm we don’t have a long pipeline of projects in different phases of development and can’t justify employing a full time architect, electrical engineer or mechanical engineer.  Instead we outsource those portions of the development process and provide professional oversight of their work product.  This technique provides the additional benefit of being able to select design people that are best suited to a particular project rather than having to rely on a staff designer’s ability to adapt to varying scopes of work.

However, outsourcing isn’t just for times when a firm needs individuals in a skilled trade, it can also be used for semi-skilled and non-skilled services.  The most basic example is when a firm hires an outside company to provide cleaning or
maintenance services rather than employing its own staff.  Utilizing outside vendors for semi-skilled and non-skilled services can make sense even if it may be slightly more expensive than a firm hiring their own people as it can reduce the work load of operational and accounting staff who can than utilize their time elsewhere.

The biggest argument in support of outsourcing services is that it allows a firm to concentrate on their core product or service.  I’m an avid believer that a firm should concentrate on what they do best and outsource the rest.  This statement holds true for the companies that you are considering to hire to provide services.  The value they can provide to you is through the economies of scale they gain in concentrating their efforts in a minimal number of related disciplines.  For
example, my firm’s services are marketed only towards commercial property owners and managers.  While the skill set our staff has would make it possible to services single family residential property owners or managers, our infrastructure is not set up to accommodate their needs.  Likewise, a firm marketing towards single family residential could not service commercial properties as effectively as they do single family properties.

With the challenges that a slow economy places upon firms today, it is a great opportunity to consider outsourcing as part of your firm’s employment strategy.  As the economy starts to expand outsourcing can still be an effective way to utilize your firm’s resources to do what you do best.

Are we preaching to the choir?

Tuesday, May 31st, 2011

I attended the International Shopping Center convention in Las Vegas, Nevada last week, which was attended by more than 30,000 members of the International Council of Shopping Centers (ICSC).  The event was held at the Las Vegas Convention Center filling the North, Central and South Halls with booths presenting products and services from developers, brokerage houses, financial institutions and construction product vendors.  However, what was in short supply were retailers.  There were several retail booths from franchise organizations and 2nd and 3rd tier retailers but very few of the national credit retailers were present.

As I watched the human mass make its way up and down the corridors, which were identified as streets to make for easier navigation, I wondered where they were all going in such frenzy.  Did they actually have appointments to meet with representatives in one of the booths?  Were they possibly on their way to a seminar or product presentation?  As I networked with other attendees at breakfast, lunch, and cocktail events put on by the ICSC I questioned them as to their goals in attending this year’s convention and whether they felt they were having any success in accomplishing their goals.  Almost all I had conversations with were real estate professionals interested in locating a retailer or small developer interested in hiring them for brokerage services.  I began to realize that the large brokerage houses were doing the same thing but utilizing a little different strategy.  They had impressive booths with a large number of their staff sitting around in their Brooks Brother suits conversing with each other.  A show of force I presume, hoping to give a retailer or developer the impression that their brokerage firm was successful and had plenty of equally successful agents to help them with their leasing needs.

It was becoming clear to me that most of the ICSC members attending the convention were looking for the same thing, retailers.  Unfortunately retailers were in short supply at the convention so here they all were chasing after the same dollar.  As attendees told each other about their firms and areas of expertise it struck me that they were preaching to the choir.  Not one of the attendees was really interested in what the others had to say, but was politely listening in hopes of getting some small amount of value out of this chance meeting.

As the CEO of Katchen Company, a boutique full service real estate firm servicing the greater Denver metro area, my goal was somewhat different.  While I’d certainly embrace the idea of representing a national retailer or another developer I was more interested in networking with people.  I wanted to make connections throughout the real estate community so that if there was need for information or expertise in a community I wasn’t familiar with I’d know someone who would either have the answer or would know somebody that does.  This is somewhat the premise behind LinkedIn but without the impersonal connection.  I was successful at obtaining my goal and walked away from the convention please with my new business connections.

In your business are you preaching to the choir?  Could it have just as easily been you at the convention chasing the same dollars?  It’s something to consider when forming your marketing strategy.

A piece of the pie is better than no pie at all

Tuesday, May 24th, 2011

Having grown up in a large family it was not often that I would get the opportunity to eat candy, cookies, cakes or pies.  The only time that sweets were in the house was for birthdays and holidays and even then there would only be a small serving for each of us.  I learned at a very early age not to complain about the portion I received as my mom had no tolerance for arguing amongst my brothers and sisters.  An example of this is when I compared my piece of pie to my older brother’s piece and exclaimed that it wasn’t fair that his piece was larger than mine.  My brother, of course, quickly retorted that his wasn’t any larger.  An argument ensued.  Mom quickly stepped in, took both plated pieces of pie and sent my brother and me to our rooms for the remainder of the evening.  The next morning I came downstairs for breakfast and asked my mom where my piece of pie was.  She stated that it was gone and that I should think about that the next time I wanted to argue about the size of my piece of pie.  She went on to say that a small piece of pie was better than no pie at all.

This lesson is something that made a great impression on me and while as a child I didn’t know that my mom was just quoting a saying that had been around for some time, as I grew older I heard the saying repeatedly.  Today I think about the saying when considering things in both my personal and professional life.  I think it is probably human nature to want more for ourselves and our family and it takes great restraint not to act upon that impulse.  For me, recognizing that I’d rather have some than none makes it much easier to settle for less. 

My real estate business offers a wide variety of services which are needed by people who rent, own or manage commercial property.  These services are similar to the services that other real estate firms offer and only differ in the way they are delivered.  I, of course, feel that I deliver a superior product to the market than my competition.  While I would like the opportunity to provide my services to everybody who has need of them I know that I would not be able to provide those services and maintain quality if I were to win everybody’s business.  In this case a piece of the pie is better than the whole pie.

Early in my business career I learned that it was not possible, or for that matter practical, to offer all of the services that my customers needed.  At times my customers required services that were either outside my areas of expertise or areas of interest and in those rare cases I was happy to refer them to other businesses that I felt would provide those services at a high level of quality.  As I sourced out service providers to place on an approved vendor list it became clear that not all businesses thought the way I do.  They were reluctant to discuss their services with me and saw me only as competition rather than a source of referrals.  I began to realize that they wanted all the pie, just not a piece.

Today I continue to build business relationships through networking and have expanded my approved vendor list considerably.  I’ve included an approved vendor list on my company’s website and am proud of the accessibility I provide my clients.  While I realize that my competition also has access to my vendors through this list it doesn’t bother me.  I’m not worried about my competition improving their level of service by utilizing my vendors and tightening the competition for business with me.  I will promote my business to prospects and they will promote theirs.  Sometimes I will win a contract and other times I will not.  That’s okay, I’d rather have a small piece of the pie rather than none at all.

You want the truth? You can’t handle the truth!

Tuesday, April 19th, 2011

In the movie, “A Few Good Men” there is a memorable scene where Tom Cruise is playing the part of a military attorney who is questioning an Army General, played by Jack Nicholson.  Cruise is pushing hard for answers about a death that occurred on the General’s base and is treating Nicholson’s character as a hostile witness.  The General becomes agitated over the disrespect the attorney is paying to his rank and finally displays his true character, yelling, “You want the truth?  Do you really want the truth?  You can’t handle the truth!”

 The General’s attitude in the scene, while fictional, isn’t much of a stretch from reality.  In business school the professors talk a lot about corporate culture and how the attitudes and the opinions of the corporate executives trickle down through the organization and define the company.  While the US government is not a corporation and certainly doesn’t function as a business, as evidenced by trillions of dollars in debt and budgets running a deficit, none the less it has a culture that is defined by its leaders.  While the Obama administration pledged that they would have transparency, their governing has been opaque.  Over the last two years there have been incident after incident where either President Obama or a member of his administration has told the public one thing only to be doing another.  Don’t misunderstand what I’m saying.  While I use the current administration as an example I could easily refer to any presidency and provide examples.  The truth is the people who run the government don’t believe we can handle the truth.

 To make my point, I’d like to give you a prime example.  A shopping center that my firm manages has a bank as a tenant.  This bank was actively involved in residential mortgages and was hit hard, like many other banks, with the economic downturn.  The leasing administrator for the bank has contacted me and informed me they are trying to sell the assets of the branch located in my shopping center. Having the knowledge that I will have a vacancy, I begin doing research into banks that operate within the local market trying to find those who are currently expanding.  While doing this research on the Internet I begin to uncover the fact that almost three-quarters of the banks within the market are in financial distress and have taken money from the federal government in order to continue operations.  I located agreements between bank executives and the federal government that prohibited the banks from making loans without the federal government’s approval.  The first thought that occurred to me was how could the federal government manage a bank’s financial operations when it can’t manage its own.  Supplied with this new information I began to understand why there has been no lending activity from banks and why the real estate market continues to struggle.  In fact, this is also why the economy continues to struggle.  Business aren’t able to renew or obtain lines of credit necessary to even out the cash flow of day-to-day operations, commercial and residential real estate owners and buyers can’t obtain loans to finance or re-finance their properties, and consumer loans for cars purchases continue to be difficult to obtain.

 So what is the truth?  Are the government’s regulations in place because of bank bail-outs designed to protect the public or are there other reasons?  Does the current administration have another agenda that isn’t being disclosed?   I have my own thoughts on that but I’m not going to write them here.  You want the truth?  You can’t handle the truth!

Thinking outside the box

Tuesday, April 12th, 2011

Thinking outside the box is a saying which has been around for some time now.  It gets tossed out at board meetings and is written about by many authors.  Today I’m throwing my hat into the mix to give one thought on real estate’s box and how as real estate investors or professionals we can move beyond the box.

 In real estate the box is the standardized approach towards conducting business.  An investor will search the market looking for a property via Internet or enlist the services of a real estate professional.  The search is narrowed down to the type and size of property, amenities, location and price.  Databases filter this information and a list of possible properties is produced.  Investor and agent sit down and review the information to determine which properties should receive a physical inspection.  Appointments are made and kept with mixed results.  In some cases the investor finds the property they are looking for but in most cases there is just something wrong with the property that won’t make it acceptable to the investor.  The search either goes on or the investor decides to hold off, hoping that a suitable property will come on the market at a later date.  Both the investor and the agent have stayed comfortably within the box.

 The best time to move outside the box is prior to narrowing down what the investor is looking for.  During the initial meeting between the investor and the agent the conversation should be more about what the investor’s goals are than what they want.  By determining the goals of the investor an agent will than be able to provide input into multiple property types and alternatives that will help the investor with their property search.  Instead of looking for a property that has everything the investor wants the agent is now looking for a property that can or does meet the investor’s goals.  This approach widens the number of properties since the agent is now looking for properties that are zoned to meet the investor’s needs and can be re-purposed for the investor.  Being outside the box opens up possibilities.