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Observations and Conversations
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| Observations and Conversations Yes, sometimes the "old way" of doing things is the best in the short-run and old habits die hard, but burying your head in the ground to change is the certain death of any enterprise. New York! New York! We’re here, all 8,000 of us dealmakers! It’s going to be a great convention. A madhouse to say the least, but that’s part of the fun. The TKO/Dealmakers gang will be there in full force and some of us have meetings in The City the weekend before. Of course, calling it a "meeting" is a bit deceiving since they will be at some of the finest restaurants in the world coupled by a good bottle of wine or two or three. That’s the fun part of our business, we do get to see the finer things in life. There’s no better city to be entertained in than New York, that’s for sure. This year will go down as the year that our industry first
started to see the proverbial worm turn. In the past decade, we have been flying
high is all aspects from new development, leasing, finance and acquisitions. The
past few months have gotten a little tougher, but we’re a resilient crowd. Next
year will probably make some of us really have to prove our abilities, since I
think it won’t be nearly as easy as the past 10. But it will keep life
interesting and we won’t be bored, and those of us with true talent will be the
hero of the Next year could be one of the leanest years we’ve seen for a long time. The election is totally up for grabs and who knows when we will get out of this crazy damn war, if oil prices will hit $200 a barrel and how Wall Street will react to any of it, but most especially, how shoppers will behave as times change. I’m not pulling a "Ted" with the negativity, but I think it might be our new reality. Change is a necessary part of our industry, if everything stayed the same we wouldn’t have differentials in the types of projects we build from lifestyle, to mixed-use, specialty, and etc. etc. 1031s and TICs are also relatively new ideas in the real estate world. So, we already have a solid track record of adapting to a new game plan and I’m sure the strong talent in our industry will just keep rolling with the changes. On a personal note, this year has been one of the roughest in my life with the loss of Ted, and I’m still standing tall, so as to any adversity in 2008 – bring it on. I already know that I can weather any storm without breaking! Yes, I’m a little bent and a lot bruised, but still in one piece. Adaptation is always key in any element of business, and life for that matter. Some of the biggest downfalls of experienced real estate people that I’ve seen is their inability or unwillingness to change. I have a friend that’s an incredible negotiator and he’s been with the same company for 20 years. His company was acquired a few years ago and there’s a new sheriff in town with a whole new paradigm on growing their company. He’s stuck in the old way of doing business and justifying his every move to "a bunch of 20-something, MBA-toting bean counters" isn’t his idea of fun – mine neither, but even an old dog can learn new tricks. Of course, he is changing in order to keep the paycheck coming, but to say he’s not kicking and screaming the whole way is an understatement. Rolling over to change without questioning "why are we doing this?" and "is it really necessary?" are extremely relevant questions to answer before a CEO or CFO starts shaking up the apple cart. But not all CEOs and CFOs are smart, that’s why not every company is wildly successful. Yes, sometimes the "old way" of doing things is the best in the short-run and old habits die hard, but burying your head in the ground to change is the certain death of any enterprise. Game plans change and if you want to win, then you’ve got no choice but to deal with it. On the topic of winning and transforming a company, I recently visited several JCPenney stores. I hadn’t been in their stores for a few years and, boy, was I impressed. Ten to 15 years ago, they were on their last leg and all bets were on that they wouldn’t make it. Shows you, it is true… old dogs can learn new tricks. On the other hand, Kmart still seems to be struggling and its saving grace is that as a real estate play – it will be a winner in the long run. I think we’ll be seeing some new retail concepts next year, which will help on the leasing and development side of our business. The new concepts that I’m hearing about are supermarkets, shoe stores and hard lines that all cater to the budget/valued-priced oriented customer. The good news is that these types of uses take up a lot of space in a center. Well on that happy note, I want to take a few lines and wish you all a happy holiday season and a healthy New Year. I won’t be writing another column until 2008, since after the New York show I have a first-class plane ticket to Europe for a much earned and deserved change of scenery. Nope, I’m not taking a cell phone or a laptop with me, so this is my last chance to thank all of you for being supportive and to let you know that your kind words and warm thoughts during the dark days after the passing of my mentor are much appreciated and will never be forgotten. Also, I want to thank Alyson and Jane, and the whole crew at TKO/Dealmakers for making it, on a business level, a very good year and, on a personal level, for keeping me focused. I know I’m getting a bit sappy, but it’s that time of year for reflection, so thanks to everyone from the bottom of my heart. Stop by our booth at the New York show, we’re at 151 Rhinelander. We’ll be there in full force and I’ve got space for lease and I’m looking for sites in Puerto Rico, so look me up. On the publishing/information services side of our company, if you need leads to lease, buy or sell retail real estate, stop by our booth and ask anyone of our team, how we can help. They’ll give you the run down on how to get your phone ringing without busting your bank account. And even if you’re fully leased, or tapped out in the acquisition or sell side and have no deals on the table, stop by anyway just to say "hi." Again, I wish you the best in the year to come with health and happiness to you all. Until Next Month, Ann ONeal, Publisher
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