Program Synopsis:  Opportunities During Inopportune Times
By Cheryl Stein

The April 29, 2009 panel was expertly moderated by Jeanne Peck, Vice President of Fifield Companies (CREW member), who posed insightful and direct questions while keeping everyone focused. After lunch for a record crowd, these four real estate professionals shared with CREW members how they create or capitalize on new positive opportunities that could result from the current adverse market conditions:

Robert Bond, Co-Founder & President of Bond Companies
Jim Farrell, Managing Director of Navigant Consulting, Inc.
Joanna Haerle, Director, Business Development of W.E. O’Neill Construction Company (CREW Board)
Rob Weil, Senior Vice President of JDI Realty

Each speaker acknowledged that the overall economy would take time to recover, but they differed as to how long it would need and whether it will become much worse before it turns around.

Farrell declared that the commercial real estate industry had become so overgrown that sales had to die and did collapse on October 2008.  He thought that promising fields are healthcare, government, infrastructure, stimulus projects and corporate real estate. 

Bond, who is co-founder of his real estate development and investment firm, elaborated on the tremendous capital growth and liquidity that was created by the CMBS since 1992. His financial analysis of all four types of real estate was pretty grim until 2013, but now is the time to learn and do more in the sustainable areas that will continue to expand in the future. He remains active in many organizations and suggests capitalizing on the wide distribution that the Internet process offers.

Fortunately, Haerle offered some specific business development ideas for us to sink our efforts into such as: examine your survival strategies for future growth; enhance your key relationships and add value to your customers; further diversify your industry categories and sizes of customers and suppliers; offer new specialty services that are of value to your clients; and tap into smaller projects and markets. She observed that her company had shifted from dealing primarily with private companies to the public sector.

Weil is a real estate attorney who had worked with a major law firm prior to joining an entrepreneurial real estate investment /development firm. He ultimately became a principal of this firm that focuses on debt and equity transactions. His emphasis is on capitalizing and buying properties at deep discounts. Weil cited that he focuses on the weekly FDIC auctions that provide a wealth of property pools, where the Federal government actually provides up to 85% financing.  The limitation for players is these pools are quite large, at $1 billion or more they require $15 million of equity. He stated that 2008 was slow but his sector this year is busy.

All four panelists encouraged personal networking and learning more about LEED and sustainability, and agreed that smaller firms are the first movers and early adapters of new opportunities.