The virus outbreak has made things very hard for people who work with buildings. They don’t know what will happen next, they have less money, they can’t get what they need, and they have to be careful not to get sick. How can they deal with these problems and get better?
One source of guidance may come from the past. In 1989, NAIOP published a document titled “Lessons Learned from the 1980s: A Survival Guide for Developers.” It was based on interviews with 30 industry leaders who shared their insights and experiences on how to deal with a severe economic downturn. The document covered topics such as financing, leasing, management, marketing, design, construction and ethics.
Although the document is over three decades old, many of the lessons are still relevant and applicable today. Here are some of the key takeaways that can help commercial real estate professionals navigate the current downturn:
- Be proactive and flexible. Don’t wait for the market to improve or for the government to bail you out. Take action to reduce costs, renegotiate terms, reposition assets, diversify income streams and adapt to changing customer needs and preferences.
- Be realistic and honest. Don’t overestimate your capabilities, underestimate your risks or ignore your problems. Be transparent and truthful with your lenders, partners, tenants, contractors and employees. Communicate frequently and clearly, and seek feedback and advice.
- Be creative and innovative. Don’t rely on conventional wisdom or outdated practices. Explore new opportunities, technologies, markets and partnerships. Experiment with different solutions, learn from your failures and successes, and share your knowledge and best practices.
- Be ethical and responsible. Don’t compromise your integrity, reputation or values. Follow the law, honor your commitments, respect your stakeholders and protect the environment. Contribute to the community, support charitable causes and help those in need.
The document also emphasized the importance of having a long-term vision, a strong team, a positive attitude and a sense of humor. These qualities can help commercial real estate professionals overcome challenges, seize opportunities and achieve excellence.
The document concluded with a quote from Winston Churchill: “Never give in, never give in, never, never, never, never — in nothing, great or small, large or petty — never give in except to convictions of honour and good sense.”
How can these lessons benefit the GTA?
The GTA is a dynamic and diverse region that plays a vital role in the Canadian and North American economy. It has a robust financial services sector, a thriving technology and innovation ecosystem, a vibrant cultural and creative industry, and a high quality of life. However, it also faces some challenges, such as housing affordability, transportation congestion, social inequality and environmental sustainability.
By applying the lessons learned from the 1989 document, commercial real estate professionals in the GTA can help address these challenges and enhance the region’s competitiveness, resilience and livability. For example, they can:
- Develop mixed-use, transit-oriented, energy-efficient and socially inclusive projects that meet the needs and preferences of current and future residents, workers and visitors.
- Leverage digital tools, data analytics, artificial intelligence and smart building technologies to improve operational efficiency, customer service, health and safety, and environmental performance.
- Collaborate with local governments, academic institutions, community organizations and other stakeholders to foster innovation, entrepreneurship, education, culture and social impact.
- Uphold high standards of professionalism, ethics and social responsibility, and contribute to the region’s economic recovery, social well-being and environmental stewardship.
By doing so, commercial real estate professionals in the GTA can not only survive, but also thrive in the downturn, and create lasting value for themselves and the region.
