Retail guru LANE4 Property Group is offering advice in its latest Orange Report that takes inspiration from our local champs, the Kansas City Royals. Before downloading the full report, here’s a sneak peek at some key advice that could lead to your team’s next home run.
Finding your niche
When selecting a location, consider your industry. While the Yankees will pay top dollar for A+ real estate in A+ locations, the Royals have had to rely on a team built around defense, a power bullpen, and pure passion. Users that don’t have limitless capital to throw around should instead opt for a model that works and commit to it.
“Which areas have strong demographics that will respond to investment in existing real estate that is not currently being used to its full potential? Which neighborhoods will continue to strengthen in the next five, ten, and twenty years? Asking ourselves these questions and working toward the answers helps us to battle competitively with our game-winning lineup,” the report says.
Trust the process
When the Royals’ leadership team took over in 2007, they asked Kansas Citians to trust the process. They found their niche and committed to it, and while results weren’t immediate, they stayed with it. Those same lessons apply to real estate, too.
Don’t let perfect get in the way of great
In the same way a player more often strikes out than gets a hit, real estate deals often end up in the “dead deals” folder. Every deal has risks, but focus on the positive attributes, and then identify and mitigate risks is key. Don’t become discouraged.
“Just like the Royals focus on the attributes of their players that they like, we focus on the parts of the deal that work. It’s our job to LIKE real estate, to believe in our projects, and to believe in Kansas City and the Midwest markets,” LANE4 says.
Team chemistry
While it’s tempting to rely on baseball stats, balance sheets, and operating statements to evaluate a deal, don’t underestimate the power of team chemistry. Despite what the numbers look like on paper, bad chemistry in a retail center can spell disaster, resulting in a negative trending direction over the term of a user’s lease. Acquisitions can be an opportunity to rekindle chemistry. Positive momentum can generate powerful forces and energy.
Read a full copy of the report here.