Your reputation in the commercial real estate world is one of the most important things to keep in mind when it comes to development projects, second only to location. It doesn’t matter how good your location is, if your reputation is poor or non-existent, then you won’t be able to find the resources you need to get your project started. This is because your reputation tells potential partners, investors and even clients that you can deliver what you promise, when you promise it. By making sure that you don’t over promise or under deliver, you can build your relationship quickly and effectively.
What You Promise
Commercial real estate development is as much about what you promise as who you promise it to. To best build your reputation, you want to keep your promises within your power to deliver them. For instance, don’t tell investors that you have a deal unless you can deliver the property. This also means keeping your word as often as you give it and not playing games with properties. The easiest way to build your reputation by what you promise is by not taking on more than you can handle. Overpromising on projects too big for your timeframe or manpower can erode trust in you and your reputation.
When You Promise It
Commercial real estate projects can be as much about timing as reputation and location, because sometimes timing determines what location you can get and how many investors and partners you can round up. It is important to realize that timing is as critical for your partners as it is for you, for instance, being able to quickly get money to purchase the land is the best way to secure the deal that you want; but, if you are not able to finish projects on time, then those funds are not available for the next development that your partners are interested in. This means setting a realistic timetable for projects and allowing for things like permit delays, availability of manpower. Most partners will understand that not everything always goes to plan, that’s why timelines for projects need to allow for those things instead of having to push back the finished date every week.
Getting ahead in commercial real estate is as much about your reputation as it is about the property, development and deal. If you only make promises that you can keep and deliver on those promises on time, then you will increase your reputation and standing among property developers, real estate investors and others. This means keeping your limits, and those of your contractors, in mind when talking to potential partners and investors.