For all types of investors, October 17, 1987 is a day that will live in infamy. “Black Monday,” as it’s more commonly referred to, was a day when stock markets across the world crashed. The Dow Jones Industrial Average dropped by 22 percent. The real estate market crashed as well, but not as a direct result of the DJIA drop. Rather, the CBRE said it was due to a mistaken policy response (i.e. an overreaction) to the news of the drop.
As a commercial real estate professional, are you guilty of the same thing when it comes to news and current events? The top CRE pros have their ear to the ground, of course, and stay privy to current events and trends. That’s smart. However, to what degree does this make them reactive instead of proactive, if any? And what are some drawbacks of being over reactive to current events? Let’s find out.
The Benefits of Staying Informed
Staying informed in general is good practice. But when it comes to commercial real estate, staying informed of the news and current events can be the difference between being proactive and reactive. By staying informed about what’s going on in the industry, you can better plan for market shifts and economic changes, but it shouldn’t cause drastic shifts on the fly. Here’s how the National Association of Realtors (NAR) put it in their recent report, Expectations & Market Realities in Real Estate 2019:
“Investors are traveling into uncharted territory as the US economy’s expansion surpasses its 10-year anniversary in July 2019, which would break the record for the longest economic expansion since the government started collecting records in the 1850s… While it is certainly good news that the economy has been growing for a decade in the wake of the worst downturn since the Great Depression, many fear that another downturn could be on the horizon.”
How do you prepare for a potential downturn? By staying informed and considering adopting CRE automation software.
How to Be Proactive Instead of Reactive
We’ve already covered on this blog how it’s beneficial to be proactive when it comes to market trends, but it’s just as advantageous to react appropriately to current events and news. You shouldn’t adjust your entire commercial real estate strategy or day-to-day actions based on a single event, but if you pick up on an important news trend, you can be proactive about it when it comes to your portfolio. Real estate automation software like Quarem can help you with this proactivity. Here are a few ways Quarem helps CRE pros be proactive to new and current events instead of reactive:
- Continuously updated market data with insights on both your portfolio’s performance and market rates for similar properties
- Critical date reminders and notifications for important events or changes — both on your leases and the industry in general
- Superior analysis of your CRE strategy with portfolio reporting that is tailored to your business and your individual properties
- Ongoing support and advice from experienced customer service specialists who are knowledgeable about what’s going on in the industry and current events
To see how commercial real estate software like Quarem can help you react better to news and current events, request a demo of the tool today.