How We Help Companies Rethink Their Real Estate Strategy
One day a few years ago, we got a call from a longtime manufacturing client.
“We need your help,” he said. “We want to buy the land next door to build a new building. Could you make this happen?”
He was asking us to help his company execute something pretty simple. Cresa is a real estate company. Helping our clients purchase real estate is one of the most basic things we do.
But we had been working with this client for several years, and we couldn’t square his request with the bigger-picture strategy that was driving his business. We needed to look at whether this was the right decision.
“Sure, we can help you acquire the land,” we told him. “But we think it’s a better idea to look at your strategic plan and figure out how your revenue translates to your need for space. That way, you could think about not only your next move, but the next move after that.”
Developing a Strategic Plan
So, we took a step back and took six weeks to develop a strategic plan. We quickly found major problems. If we acquired the land next door, the new building wouldn’t be done in time to meet the company’s revenue goals. In fact, the building would be about five months late. We quickly steered away from that plan and started looking at better options.
We looked at another important factor: the company’s labor pool. They were struggling to attract and retain employees at their existing location. They needed a fresh talent source.
Meeting the Business Goals
In the end, we helped the company purchase a much larger building, 40 miles away. They got into the building sooner and were able to outfit it faster than if they’d purchased the land next door. And the building was very close to a community college, providing a steady stream of qualified potential employees.
The client was delighted. He knew he could trust Cresa to do the right thing. Instead of offering services that would bring us the highest fees, we did the right thing for their business. By not doing what the customer asked us to do, we were actually able to provide better service and keep the customer on track with their business strategy.
Thinking Beyond Brokerage
People are often surprised that we put this much thought and effort into making our clients’ businesses successful. They’re surprised that we’re willing to dig into tough questions instead of just moving a deal forward.
Real estate decisions are never just about the real estate. Smart decisions are informed by much more than square footage. We think about location, transportation, labor markets, wages and benefits, competitors, customers and business processes.
This story perfectly sums up why I love working at Cresa. Our team doesn’t just help people make good real estate decisions, we help them make good business decisions. That’s what makes me excited to come to work every day.