The current credit and real estate market drops have sharply impacted most real estate development projects in very fundamental ways including the inability to reach sales or leasing targets.
Static thinking about valuations and sales strategies can be destructive to asset values as carrying costs erode already diminished values. Success in this market requires constant reevaluation of market values, and updated marketing plans that take into account “what is working in the market”. Projects formerly planned for sale may now need a leased component to offset project carry and buy time for the market to stabilize.
In these turbulent times, developers and their investment groups are often best served by bringing in a third party to challenge sometimes basic assumptions about the project, the immediate market and longer range market forecasts. It is not a matter of needing more creative thinking but the need for objective, pragmatic problem solving and moving forward with a plan that brings the greatest value.
Cranewoods can increase the odds of success by undertaking Competitive Market Analysis (CMA) to determine a properties’ current appraised value, and structure a marketing plan around that value and the identified buyer demographic. We can also partner with the best fit Brokerage company to further increase the odds of a successful sale and/or leasing program.