The Only Constant in CRE is Change

“Change is the law of life, and those who look only to the past and present are certain to miss the future.” - John F. Kennedy

As someone who has been around for a while, I couldn’t agree with this statement more. Change is the only constant in the universe, and this is true for every business and industry. Control is simply an illusion —?an important illusion, but the idea that we control things is a fantasy, nonetheless. Because of this, the ability to adapt is one of the most critical skills we can have in business.?

Real estate is a cyclical business

“Everyone has a plan until they get punched in the face.” - Mike Tyson

Real estate is an unequivocally cyclical business —?and real estate executives need to understand and embrace this truth to succeed. In good times, everyone is on top of the world, feeling that they can’t go wrong. However,when the inevitable downturn comes, the people who failed to plan for change are now the ones playing the victim.?

Of course, some industries are as steady as they come.? However, real estate is definitely not one of them. Take a look around —?right now, we are going through a painful change in the commercial real estate industry. Yet, the “old timers” in the business know that these are the times when we are taught valuable skills —?and even the times when we can make our greatest gains. Thankfully, at 仲量联行 , we are already preparing to win the recovery.

We must be efficient in our down times, constantly sharpening our skills. In the good times, there is so much demand that you really don’t have to be the best to find business. After all, hungry people will eat at even the worst restaurant. In the lean times, however, your customers are much more discerning, so it’s important to find a way to differentiate yourself — and this is best done by delivering the best client experience to your customers.?

What happens in the down times??

When times are lean, your customers do not prorate their services, passing around smaller contracts to everyone they already work with. In these times, there are winners, and there are losers. If they need 50 of something, they don’t divide these among all of their service providers —?they will probably go to the top two providers, split everything between them, and everyone else gets nothing.?

At JLL, we know this —?and we understand the cyclical nature of real estate. We pride ourselves on being good stewards of our resources, and good managers of our people, to help weather the downturns and win the recovery.

It’s important to me that our clients know they can trust us. In these leaner times, I don’t want to be too negative —?but I always want to paint an honest and realistic picture. I try to stay with the data and be honest about the numbers so that we can help our clients make sound decisions when it really counts. In the tougher times, our clients are especially hungry for sound, actionable advice (and understandably so). This is when working with a trusted brand like JLL really pays dividends for clients.?

The importance of setting yourself apart

If you haven’t differentiated yourself from your competitors, then when demand decreases, you have no choice except to compete on price. I see it happen in every down cycle. It’s currently happening to our competitors — they are currently selling on price alone, asking themselves questions like “How cheaply can we sell this widget?” At JLL, we have differentiated ourselves through expertise, client experience, and the breadth of our platform. We know our clients are relying on us to help lead them through the tough waters.?

This business is all about building relationships. The very cornerstone of business is the customer experience, and it’s something I take seriously. If you can be a solver of problems and a provider of solutions, you’ll always meet with success. Working for a global company with hundreds of real estate services requires certain standards that must be maintained.?

How JLL can help

As a global company, JLL has the unique advantage of knowing and seeing how many companies and industries have handled down cycles. We have a long history of assisting our clients in all markets, up and down.? We are able to provide sound advice on which holdings to keep, which to dispose of, how to best optimize your portfolio, and more.?

Rather than resisting change, I believe it’s important to embrace it. It is an integral part of our industry. It’s a chance to adapt, to shift your sails, and do better in business. Rather than battening down the hatches, lean into the storm —?and learn how to use it to your advantage. You will win a lifetime of loyalty from your clients if you are able to unselfishly help them in turbulent markets.??