Professionals Know How Challenging the Office Commercial Real Estate Sector Has Been Since the Pandemic
While difficulties remain and there have been some high-profile office transactions indicating that firms are looking to reduce costs, particularly on the financial end where there is much uncertainty around banking and financing, those willing to take a new approach and leverage innovative technology solutions can create new opportunities for revenue and growth. Here, we’ll explore several recommendations for offices in commercial real estate to help those still considering this class make the most of their efforts.
Three Considerations for Office Commercial Real Estate Assets
1. Create a Competitive Advantage for Tenants
Employment has been improving over the past several months, which results in organizations competing more and more for top talent. In urban areas where office assets are still being utilized or explored, tenants are going to prioritize office assets that enable them to attract and retain that talent. Consider what the asset has to offer in this area, or what needs to be improved in order to maximize value for both tenants and the employees they’ll be hiring. Research other assets that have recently sold or are under renovation to see what you’re competing against. Remember, space is just one of many elements a prospective tenant is considering — always seek to add value where you can.
- Capture that value and communicate it to investors. Learn more about effective investor communication here.
2. Make the Asset an Innovation Hub
Innovative organizations in office commercial real estate assets naturally attract other organizations. Their energy, potential, connections, talent, and more all come together to create a hub — a place where companies can leverage that synergy to go further and do more. How can you make your office asset a hotbed for thinkers? What is needed to attract that kind of talent? Of course, the facility itself is just one part of the equation, but aspects such as technology/infrastructure, layout, nearby amenities, and location influence employee experience, the ability to innovate, and more.
- Considering adding another asset to your portfolio? Learn how to find the right opportunities.
3. Know Where to Look for Capital
Time is critical in the office commercial real estate sector. When an opportunity arises, you need to know exactly who to turn to for capital. Again, much is still in flux in the banking industry, but debt will likely continue to be the leading source of funding for an office asset. For the rest, you’ll need outside investors. Ensure you’re prioritizing the right contacts when pitching the opportunity. Have they contributed to similar deals in the past? Is the capital required on par with past investments? Are those investors interested in emerging trends? What are their risk preferences?
- Make the most out of your fundraising and capital calls. Learn more about what to do to achieve your capital goals.
Use the Right Technology to Make Your Next Office Opportunity a Success
Designed for commercial real estate professionals and the investors they work with, Covercy is the first real estate platform where banking meets investment management — from banking and fundraising to asset management and even distributions to investors. Covercy offers extensive benefits for GPs looking to make their work simpler and more effective — whether they’re working an office deal or an opportunity with any other asset class:
- Auto-generate marketing assets for office deals
- Track investor engagement to prioritize outreach
- Build contract templates and collect signatures
- Generate structured reports with metrics and more
- Share documents, contracts, K-1s, and reports
- Support complex investment structures
- Open FDIC-insured accounts right from the platform
- Earn strong interest on uninvested capital
- Issue payments to vendors at any time
- Collect funds with ACH capital calls
- Auto-distribute funds to investor bank accounts
- And much, much more
If you’ve been looking for a solution to reduce complexity and administrative workload while adding value for investors and your own team, Covercy is the office commercial real estate management platform for you.