Trends in the Real Estate Business
In the last few years the real estate business has undergone many changes. Tax reforms, the market reality oversized, changes in the structure of financial institutions and new forms of national environmental regulation all contributed to a real critical time for the real estate industry of the United States. In short, the nature of business has changed significantly, affecting a wide range of business activities, including competitive strategies, relationships between buyers and suppliers of market methods and development systems for control, coordination and motivation, the product development, financial management, development and human resource management. The way real estate organizations respond to these changes will directly affect their future success. Strategic planning in the real estate business involves a variety of disciplines such as organizational analysis, tax planning, market analysis, deal structuring, investment planning and financial analysis, to name a few.
Corporate Strategies While that strategic planning can benefit many organizations, much of the demand for strategic planning derives from three corporate types, a type are the Diversified conglomerate with substantial real estate and often devalued. Such institutions often wish to improve their properties with global corporate purposes and / or real property used in the financial restructuring or simply to generate income. A second type of corporate entity might be looking for a way to enter the real estate industry again. A good example would be a regulated public utility seeking to establish real estate subsidiary unregulated. Third type involves corporate real estate firms seeking relocation to the market or expands into other markets or areas. To achieve these goals, they also may need to restructure themselves in their organization and finance.
Situation Analysis The purpose of the situation analysis is to establish common goals and objectives, and document the key variables that affect the business plans of an organization. Hopefully, these activities will lead to the ultimate goal of establishing a consensus among the participants in the overall strategy. The situation analysis involves a number of issues, beginning with a determination of the organizational structure of the company and its goals and overall objectives business. It could also include an analysis of global business trends and local market conditions, an inventory of current real property, and a review of external factors affecting business, including regulatory restrictions, the tax position, the capital structure, etc.. A situation analysis includes actual interviews with key executives in the organization, reviewing important documents, property inspections and site, and the definition of short and long term. This process may require data from other specialists outside the real estate, such as organizational consultants, tax, and accounting. Once the situation analysis is complete, top executives gather in a special workshop to review the results. This workshop is critical to the overall success of the meeting for three important reasons. First preference is establishing a consensus between the client and outside counsel with respect to the center of the process. Second, it provides a mechanism for the heads of departments in the organization to participate in the strategic planning process. Finally, it provides a common basis of understanding? What is it, to reach the goal? What will be?.
Strategy Final In the final step in the strategic planning process, all decisions are documented in a final plan of business strategy. Naturally, the format of the final document will tend to reflect the organization’s own preferences, but a convenient summary can emphasize the main points of the plan. Once the documentation is complete, strategic planners run a final workshop to gather all the details are in the process of decision making. A major focus in this process is the assignment of implementation responsibility for various components of the plan to specific individuals. It is also important to establish procedures for specific monitors. Ultimately, strategic planning can be a huge benefit for many types of organizations, especially in the real estate industry that is often turbulent. Historically, the real estate community has consisted of independent individuals, aggressive negotiators who were in the real estate business to make money. Today, however, the real estate industry is maturing, primarily due to increased competition and market saturation. The conclusion is that real estate companies now have to worry about business strategies for the real estate industry as a whole, not simply as individual projects.
The author is a real business valuater for global business valuations markets and enjoys a great deal of satisfaction in sharing the trends and analysis. Business Valuations In New Jersey
Processing your request, Please wait....
