How to Make it Through a Challenging Market

Most large multi-unit developers and property owners make two crucial mistakes when bringing on new-to-market projects. ( This seems timely after reading an article this morning from RichmondBizSense)

1.) Hiring the Right Sales/Leasing Team
Most developers, and Property Managers, rely on a strategy of hiring an on-site Leasing Agent or staff person to sit in the Leasing Office and wait for tenants to walk-in. This is a big mistake. Having worked as a Broker in the Manhattan market for 3 years, I know first hand that this strategy only works in a strong rental market. If there is plentiful inventory and lax demand, a developer, needs a Property Management team that is proactive. We have talented “commission-based” Sales and Leasing Agents. Our people are fully trained, incentivized and proactive. Instead of one staff person waiting to “take orders”, our team of agents is out scouring the market, promoting and advertising our properties looking for good quality tenants.

2.) Pricing Aggressively
When projects come on the market, investors and developers are concerned about meeting their pro-forma goals in terms of price per unit and price per square foot. But this is a classic error. The key is occupancy NOT price per foot.