RealTech with Peter Boritz: Get More Website Traffic

Your website speed can be a key indicator of how many visitors go to your website and spend time learning about your organization. In addition, potential and current clients who wait too long for web pages to load may be reluctant to return to your site.

It has been proven that as little as a five percent increase in your website speed can increase page views by as much as twenty-five percent. Below are some tips to increase the speed of your website:

1. When it comes to your homepage, use facts and keep the page clean and simple. Avoid using Flash videos or animations/graphics that take too much time and bandwidth to load. In the amount of time it takes one of these large files to load, you may have already lost a potential client.
2. Don’t place video links on your homepage. Links from video sites such as YouTube not only take time to load, but often make a web page look cluttered and distracts from the information you want visitors to see.
3. If you need to place video on your site, make certain that the host of the video is within a close proximity. The longer distance the information has to travel, the longer it will take for the page to load.
4. Measure the speed of your site to identify the areas which need improvement. There are various websites, both free and paid, that can check your site for browser compatibility, optimizes images and JavaScript and more.
   

Some useful sites are:

• Aptimize.com
• Google Website Optimizer (free)
• WebsiteOptimization.com (free)

In today’s market, having an informative and well-performing website is key for your business to succeed. Don’t lose opportunities and new customers because your website is too slow.

A Game of Musical Chairs

Or so those in the real estate investment management sector must be feeling.  As the music has stopped, are there sufficient chairs?

The extraordinary rise of the institutional investor in real estate for the past twenty plus years spawned an equivalent rise in the number of real estate investment managers of all sizes and types: equity, debt (whole loan and securitized), securities, international, sector specific, geography specific, etc.  Now we see a precipitous drop in the level of new capital to be provided by such institutions as they face issues of liquidity, and consequently we may well see a corresponding reduction in the sector that serves them.

We categorize today several classes of investment managers: those that are large, international and subject to foreign institution and government issues; those that are large/midsized domestic and international, but independent, owned either by private equity platforms or entrepreneurial participants; and finally, those that are small, independent and entrepreneurially owned.

We are entering a period of account transfers.  We are entering a period of “zombie” managers, i.e. those that cannot raise and invest capital on a go forward basis.  We are entering a period of consolidation, which will be a difficult process of transfer.  The landscape of providers may look materially different over the next five years (as it did after the commercial real estate breakdown of the early 1990s).

What will characterize the survivors? 

1.    Certainly a minimum “size” or Assets Under Management, allowing for financial flexibility and the ability to retain and hire the best human capital during these difficult portfolio times.
2.    The ability to fund future co-investment and therefore invest institutional capital, if raised.
3.    An enterprise that is managed with good, if not best practices versus simply serving as a “deal shop.”  We will see both the enterprise-based model and the deal-based model, but the latter will have core aspects of strong enterprise management.
4.    Teams of managers that are “rowing” together versus the stress that we see developing between teams of managers.  Breakdown in the leadership of managers is the surest way to bring down an enterprise.
5.    Leadership that can hold and motivate both senior and mid-level managers.
6.    Compensation programs that motivate appropriate behaviors relating to both the investor and the enterprise versus simply a participation in deal or fund pieces.
7.    Enterprises that are creative and willing to diversify and grow in order to gain market share (in a declining pie, the strategy of market share is imperative).
8.    The ability to bring on the best human capital that the market has to offer.
9.    For many who fundamentally understand the psychology of the investor and are able to shift/diversify into controlled accounts, club accounts and related structures that require a different style of management and investor interaction.  Organizations may require changes to their human capital, processes and procedures and rewards system to address such opportunities.

The game of musical chairs will be a stressful one and will result in a changed landscape, but those who understand how the game is changing and are prepared to manage an enterprise with strong practices will find a way not only to survive, but prosper.

— An Enterprise Perspective from FPL Associates

Ideas Change Everything

Change Design - our pursuit of the moment.  In developing and designing buildings --  the act of creating buildings, by its nature, is a great expense of energy and materials dedicated to a moment in time, for the human activity of it's time.

   

photography - Sean Airhart 

Change is a constant state -- how can we create buildings that are relevant today, and lead us into our changed future?  Between the economy, climate change, and the technology revolution, we must design for change.  Here are some of the change design tools that we are using, every day.

Understand the past, listen to the present, design for the future. True listening involves challenging and dropping assumptions that are no longer relevant - and gaining new insights

Find the essential human experience necessary for an organization to optimise and be better. Look deeper, put yourself inside and walk through the experience, every step of the way.

Build renaissance teams - integrating diverse intelligence creates high performance outcomes. Pull in team members from differing backgrounds and with varied knowledge and training - don't allow social cohesion to stifle creative thinking.

Design to reuse, adapt, and re-invent. Look beyond the horizon line, understand directional shifts - step outside, broaden your vision. Consider all scales - the site, the neighborhood, the city, state, country - and look to the world beyond,

Design to cross boundaries - drive for integration, inside out, outside in. individual, community, world.

We can all be artists of change, shaping our future through change design.

Business Management: Words of Wisdom

Here are some words of wisdom from a mortgage banker who has been through the cycles before. They hold truths for everyone in the real estate business, not just mortgage bankers. Whether you have been through tough times or not, you will get something out of these suggestions.

1. Don't wait for the phone to ring. Pick it up and set up meetings.

2. Stay close to your lenders.

3. Chase relationships not deals.

4. Find the new buyers.

5. Be responsive.

6. Be an expert and know what you can get done.

7. Don't get down. And if you get beat, get up, dust yourself off and get back in the game.

8. Remember, in any field there is the 80-20 rule: 80% of the business is done by 20% of the people. Be in the 20% or find a new field.

9. Remember, you are in this business by choice; strive to be your best.

10. Market and brand yourself. Your name should be known by every real estate professional in town.

11. Suppress your ego. You are a service provider. Be humble and the best at bringing people together and you'll be rewarded.

12. Always check before you give an answer of "No, I can't" or "Yes, I can" get that done, unless you know for sure.

13. Don't be a zombie. Zombies show up every day and go through the motions but they are the walking dead. Know what you need to do each day to drum up new relationships and do it.

14. Stay organized and follow-up.

15. Don't take any relationship for granted. There are a lot of hungry competitors that are calling all your clients. Make sure you inform your clients about new sources before they hear about them from someone else.

16. Have (in writing) 4 or 5 simple goals to accomplish each day that lead toward your long term goal.

17. Be at ULI, ICSC, NAIOP, etc. and network.

18. Celebrate your accomplishments!

Business Management: Shifting Economy Creating New Opportunities for CRE Professionals Willing to Adapt

As companies retrench across the commercial real estate industry and layoffs compound by the month, it is no surprise that some professionals are giving serious thought whether they should change careers and abandon the industry altogether. The commercial real estate sector undoubtedly faces a difficult road ahead, but we can be comforted in the fact that the industry as a whole will never become obsolete.

As real “tangible” property, brick-and-mortar assets are not going to go away as a major investment class, despite lower valuations. While land and building ownership may deleverage and change hands, with mortgage notes getting traded to new borrowers, the vast majority of commercial real estate will continue to have a very long asset life. Real property will continue to need to be re-tenanted, repaired and repositioned, offering long-term, sustainable career paths for both veteran professionals and those newer to the industry.

According to CREW Network’s recent research white paper, “Repositioning Your Real Estate Career to Succeed in an Era of Change,” new opportunities will emerge for those willing and able to reposition into specialties that will be in demand due to the changing economy:

· Frozen credit markets will lead to demand for expertise in securities, bankruptcy, distressed portfolio management, appraisers.

· Drop in consumer spending will lead to demand for retail strategies and design, and property leasing. · Increasing government involvement and regulation will lead to a need for experts in compliance, as well as accountants and controllers.

· Global warming will lead to increases in jobs pertaining to sustainability issues.

· The residential real estate meltdown will create opportunities for those with expertise in multifamily leasing and development.

There’s no doubt about it. Challenging times lie ahead. But the industry will always be in need of dealmakers who are creative, innovative, and resourceful. Those who can capitalize on opportunities that exist in the market and reposition themselves for professional growth are the ones who will not only survive the downturn, but will emerge as winners for decades to come.

Management Matters with Mike Myatt: Experience - Help or Hindrance?

While experience can certainly be an asset, it is not at all uncommon for it to be a severe hindrance. While I’m not prone to stereotyping, it has been my observation that there are generally two types of people: those who don’t know what they don’t know, and those who do know what they don’t know. All other things being equal, the difference between the two groups boils down to experience and discernment. Those people who don’t know what they don’t know typically tend to be either younger professionals beginning their careers who have a lack of experience, or older professionals who have not gained wisdom and maturity as they have progressed along their career path.

The Early Stage Professional:

On the positive side of the equation young, inexperienced, and energetic professionals sometimes accomplish great things because they don’t have the experience to know what they are not supposed to be able to accomplish. As a result of their professional naivete, they sometimes appear to achieve the impossible. However more often than not, young professionals operating outside of experiential and/or educational boundaries are met with failure and frustration by having what appear to be great ideas eventually unwound by unforeseen factors that only were unforeseen to them due to their inexperience or lack of discernment.

The failures and setbacks of the early stage professional can be healthy learning experiences that lead to professional maturation so long as learning actually takes place, and mistakes of naivete don’t become patterns for future disruption. It is essential that young professionals gain an understanding of where their skill sets and competencies begin and end. Once the boundaries of knowledge are understood, then definitive steps can be taken to create a plan for personal and professional growth. The decision can be made to ignore weakness by design by playing to your strengths, or you can choose to improve weak areas by closing the gap between where you are and where you want or need to be.

The Tenured Professional:

Regrettably, it takes more than time on the job to reach true professional maturity. I have personally witnessed people, 20-plus years into their careers, who have reached executive level positions and they still don’t know what they don’t know. It is all too common for these types of people to operate in a vacuum by believing that their experience alone is a cure-all for any issue or problem.

How many times have we all observed an experienced person with subject matter expertise in one area, try to drive an initiative or an agenda in another area, only to fail miserably because they didn’t know what they didn’t know? Let’s look at this issue another way; how many times have you seen an older and more experienced person fail to solve a problem that a younger and less experienced person solved with seemingly little effort? While experience is a valuable commodity, in-and-of-itself and to the exclusion of other traits and characteristics, the sole reliance on experience can be a barrier to professional growth and maturity.

That being said, I have never been a believer in the adage “you can’t teach an old dog new tricks.” In fact quite to the contrary; I believe anyone (yes, I mean anyone) can change given one prerequisite; the desire to do so. However in that vein, I feel just as strongly that change cannot be forced upon someone who does not recognize the need for change, or even worse, recognizes the need but has no desire for change.

Whether young or old, experienced or inexperienced, the best way to approach personal and professional development is to always stay in the learning zone. When you think you have all the answers is precisely the point in time when you are headed straight for the proverbial brick wall. Always seek out people who know more than you do and actively learn from them. Find a mentor or coach who can dispassionately point out your shortcomings and help you chart a path to progress.

Most things in life happen as a result of choices we make. It is clearly within your grasp to make the choice to gain an understanding of what it is that you don’t know, and determine what you want to do with that information. It’s your choice; choose wisely.

Management Matters with Mike Myatt: Social Media Strategy

Developing a social media strategy will be critical to your businesses success moving forward. If you don’t have a well conceived and deftly executed social media strategy it will be difficult to drive brand equity in an ever increasing consumer driven market. Our social media practice is the fastest growing segment of our business simply because of the demand-side pull from the market place. Consumers won’t engage with companies and brands they do not trust, and in today’s world trust is most effectively established via social validation on the Internet. How times have changed…

If you’re still of the opinion that social media is not ready for prime time, think again. Coca-Cola just announced the creation of a new office of digital communications and social media within its public affairs and communications department. Clyde Tuggle, SVP of corporate affairs and productivity at Coke, noted “mass media is declining in importance…Our future success depends on our continued ability to connect people to our brands and our company all around the world, one person at a time.” Tuggle also stated “Our new office of digital communications and social media will help us become even more comfortable and effective in these new spaces.” This is just one example of how some of the largest brands on the planet are shifting their thinking…less TV and print and more Internet.

If you think Squidoo, Del.icio.us, and Furl are foreign language vocabulary references, if your company doesn’t embrace blogging or the use of viral videos, if you’re not leveraging LinkedIn, Facebook, Twitter, MySpace or any number of other social media platforms, then you are already way behind the curve. Your current and future customers are looking for you online, and if you’re not there they will simply select one of your competitors who is.

What we find in working with many companies in developing their social media marketing strategy is not that they haven’t heard of it, but rather that they don’t know where to start. The biggest issue for most companies is that social media requires active management and coordination between platforms, which in turn requires an understanding of the medium, and also a significant amount of time and resources. The landscape is confusing for the uninitiated and is further complicated due to the rapidly evolving nature of social media technology. However, letting complex marketing initiatives gate the forward progress of your brand is never too bright a move. Bottom line: Go social or go home.

Management Matters with Mike Myatt: Longing for The Gipper

Where’s the Gipper when you need him? There are great lessons to be learned from Ronald Reagan.

Few would argue that Reagan was a true statesman and one of the greatest presidents of the modern era. Virtually every politician, republican and democrat alike, have fondly referred to him on many occasions. Barack Obama would even quote him while stumping on the campaign trail. So why is it that the current administration doesn’t pay more attention to the wisdom contained in the words of President Reagan as they go about their day-to-day actions? The answer is simple; they are too busy feathering their own nest and acquiring more power for themselves, rather than looking out for our best interests.

In the text that follows I’ll do no editorializing whatsoever, as I believe President Reagan’s words speak volumes on their own accord. The following quotes from Reagan are just a few of my favorites, and given today’s environment, they provide more than sufficient food for thought:

“Government does not solve problems; it subsidizes them.”

“Government’s first duty is to protect the people, not run their lives.”

“The problem is not that people are taxed too little, the problem is that government spends too much.”

“The most terrifying words in the English language are: 'I’m from the government and I’m here to help.'”

“Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”

“Governments tend not to solve problems, only to rearrange them.”

“It has been said that politics is the second oldest profession. I have learned that it bears a striking resemblance to the first.”

“No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we’ll ever see on this earth.”

“One way to make sure that crime doesn’t pay would be to let the government run it.”

“The best minds are not in government. If any were, business would steal them away.”

“Democracy is worth dying for, because it’s the most deeply honorable form of government ever devised by man.”

“Entrepreneurs and their small enterprises are responsible for almost all the economic growth in the United States.”

“Government always finds a need for whatever money it gets.”

Business Management: Do Not Overlook the Importance of Succession Planning in this Environment

The last major and protracted crisis that specifically affected our industry was during the period from 1991 to 1995. How many of you were around to remember a phrase that permeated the industry – “Stay alive to 95”?

Well, there has been one long-term effect emanating from that period of time. Have you ever noticed that there are fewer professionals in our industry today between the ages of thirty-five and thirty nine years of age?

This will have a serious impact on succession planning for our industry for the near term future. It is all too easy to look at your young professionals, with little experience of a downturn, as a prime candidate for “right sizing” your organization during this deep recession.

However, we want to be sure that in the near future we do not lose our young professionals through disillusionment with real estate as a viable profession, and by 2020-2025 there will be a strong and experienced group of leaders available in the industry, with the proven experience of handling the various cycles we will continue to encounter, and ensure the health of our companies moving forward.

This is the time to invest in their career development. I applaud many of my senior colleagues for the effort and resources they are dedicating to mentoring, encouraging and teaching our young professionals new skills in cold calling, bringing value to a client in these difficult times, and sharing how they excelled and prospered during down cycles.

There is nothing more gratifying than seeing those new skills placed into the hands of enthusiastic young professionals – who armed with this knowledge, and the support of their mentors, will come out of this current cycle far more valuable to the company than anything they learned before while riding the crest of an “up market”.

Management Matters with Mike Myatt: The Perils of Search Engine Marketing

Search Engine Marketing has always played a critical role in managing the visibility of a company’s online brand. However with the Internet becoming what is arguably today’s dominant medium, Search Engine Marketing has also risen to become a key driver in a company’s overall brand strategy. Regrettably the maturity of the products and services that comprise search engine related disciplines come at a time when the industry has never been more complicated and difficult to navigate. Even though businesses today have many more options with regard to how they execute their search engine initiatives, I find that many marketing executives struggle more today with their online marketing strategies than they did a few years ago. In today’s column I’ll share my opinions on the current state of the Search Engine Marketing Industry.

Let me begin by stating that I have been actively involved in the search marketing industry from its conception, watched it struggle through its adolescence of the dot.com boom and bust, and am now watching it get a second-wind with Web 2.0. While the Internet as a medium is far from being mature, it has most certainly evolved and so have the methods for marketing your brand online.

I attended a number of search marketing conferences each year, and while the messages communicated at these events made it clear that the industry has shown remarkable growth, made tremendous advances in sophistication, and has increased in the diversity of product/service offerings currently available, I question whether things are getting better or worse for the average consumer.

In talking regularly with many senior executives, marketing professionals and entrepreneurs one thing is clear…they are clearly not fluent in the area of search engine marketing. While these professionals understand the potential that search engine marketing holds for their businesses, they do not understand how to capitalize on it. In fact, many of the people I have spoken with are extremely frustrated at the amount of money they have invested in search initiatives without being able to develop an understanding of the medium such that they have not yet been able to develop a consistent winning strategy in this space.

The major problems that exist within the search industry are tied to the fact that this is still an embryonic medium. There are only so many ways to purchase advertising in more mature mediums like radio or television. Contrast this with the numerous options available to consumers and businesses looking to purchase advertising on the internet: Organic Search Engine Optimization, Pay-Per-Click, Pay-Per-Call, Pay-Per-Acquisition, Pay-Per-Post, Sponsored Advertising, Themed Advertising, Internet Yellow Pages, Ezine Ads, Contextual Advertising, Embedded Advertising, Pop-overs and Pop-unders, Banner serving networks, Directory Ads, Content Syndication, Branded Portals and Microsites, e-mail marketing, Link Building, Blogs Viral Video, Podcasts, Webcasts, Twitter, and other forms of emerging Social Media Marketing.

Advertising mediums in the infancy of their lifecycle spit out new opportunities faster than you can shake a stick at, and worse yet, this happens with a plethora of inexperienced vendors lined-up to cut their teeth on the advertiser’s nickel. There is rarely a week that passes when I don’t speak to a company who has a horror story to tell about a search marketing company who over-promised and under-delivered, and by the time the advertiser figured out what was going-on they had spent thousands of dollars with little to show for it.

Another problem with the search industry is that a relatively small number of websites (Google, Facebook, etc.) currently control most of the traffic. Let’s look at Google as an example…Combine Google’s dominant position with the fact that they will share little if any data with advertisers, and that they can change the rules of the game at any time and it brings new meaning to the term “Flying Blind.” However the issue of transparency within the search industry is not limited to Google. Most of the search engines play their cards very close to the chest as they try and establish a leg up in the market. Until there is competitive pressure brought to bear on Google the odds are stacked against the advertiser. I met with a client last week that was spending 50% of their Pay-Per-Click budget on Yahoo and MSN because it was recommended to them by their search marketing firm. The problem was that given the advertiser’s product line and target market, Yahoo and MSN would produce virtually no return for them…This is a big problem.

The fact is that the Internet is the medium that can deliver the most velocity and biggest return on your marketing dollar. I also believe that this will continue to be the case as the dominance of the Internet medium will only continue to widen the gap over alternate mediums. Companies cannot afford not to allocate a substantial part of their advertising budget to online advertising, but until the medium matures it will behoove of them to make sure that they work with the best vendors who can keep up with the rapid pace of change in the industry.