Idea Hall Blog Real Estate Rebranding Tactics

09/29/09
The commercial real estate industry is beginning to see an increase in transactions, be it through an influx of opportunistic investment capital, pain thresholds among sellers, or a reality check in cap rates and what they mean in today’s world.  (See this related article from CoStar).

Whatever the case, new owners are charged with adding value in what remains a fragile economy. New capital investment, management tactics, and marketing strategies may all be necessary to drive leasing or maintain occupancy.

When the strategy calls for repositioning or rebranding the asset to maximize value, communicating a clear and consistent message is required. Changing the market's perception about a project can be tough, yet when done well it can transform a dead brand into one with new value.

Here are a few guidelines for successfully repositioning an asset:

1. Clearly communicate your strategic plan immediately following the transaction. Let your new tenants, peers and employees know that you are implementing a new brand and why.
2. Keep the lines of communication open. Following the initial splash of publicity and buzz following the acquisition, continue the conversation with all of your key stakeholders. This included tenants, investors, brokers and the market as a whole.
3. Don’t compromise on the brand. Invest the time to develop a brand that the market can identify with and that resonates with your organizational core values. Carry this sentiment out across all forms of communication, including the property’s name, logo, Web site, leasing materials and media relations. Consistency equals quality, and quality drives value.

Whether your business is office, retail, industrial or multifamily, clear communication and consistent branding are integral to a successful repositioning strategy. Given the investment you make at the asset level, doesn't it make it make sense to carry that through in a branding strategy that will further ensure the success of your project?