Businesses across the country, in a wide array of industries, were faced with monumental challenges from the novel coronavirus pandemic. Particularly in New York, the real estate industry saw unique hurdles, as in-person property showings and closings were prohibited, construction stopped and property managers had to work to reduce the spread of a deadly virus, all while the economy faced its biggest challenge since the Great Depression.
We spoke to several leaders in the real estate industry to find out what they’ve learned from this experience and the steps they’re taking to shore up their businesses in the future.
What have you learned from COVID-19 thus far?
That companies can be resilient and nimble. Our staff was very willing to adjust to working from home and our clients were understanding in adjustments to business practices.
What initiatives (if any) did MNS take pre-COVID to prepare for a downturn?
We cut out spending immediately. All unnecessary expenses, like our water filtration system in the office and any other expenditures, were quickly eliminated. We furloughed some employees immediately and adjusted everyone else’s salaries (eliminated the partner’s salaries) in an effort to ensure we could last for many months. This was prior to any stimulus package being discussed. We wanted to ensure from the onset that we could keep the company going.
What will MNS implement after this to plan for future downturns?
This isn’t our first downturn. Real estate in New York has had to outlast 9/11 and the financial crash in 2008. The key for us is to have a diversified portfolio that is not heavily weighted on one part of the market. We handle brokerage for condos, rentals and releasing. We handle pre-development planning, marketing, web development, advertising and interior design. While the market itself is not robust, we still have to plan and design future projects ensuring we have diversified income streams. This ensures our ability to be able to outlast downturns.
What have you learned from COVID-19 thus far?
This crisis has only reaffirmed one of my most important basic principles, “Expect the unexpected.”
What initiatives (if any) did Time Equities take pre-COVID to prepare for a downturn?
Another one of my guiding principles is “Under promise and over deliver.” In preparation for a downturn, we made sure to have available cash and unused line of credit reserves as well as have a conservative approach to all proformas.
What will Time Equities implement after this to plan for future downturns?
We will certainly be more attentive to contagious health issues, regardless of where they start in the world.
Applicable principle: “Make ‘hay’ while the sun shines but carry a large umbrella.”
What have you learned from COVID-19 thus far?
A little humanity goes a long way, especially in times of crisis. Despite the terrible circumstances, it has been refreshing to see companies, leaders and brands showing compassion in new and innovative ways. I think this highlights what I have always believed – we are all more alike than we think, and there is something unifying about an experience like this.
What initiatives (if any) did the firm take pre-COVID to prepare for a downturn?
As soon as we knew our team would be working remotely, our primary focus was designing virtual tours for all residential listings. We’ve utilized these before, though we knew we would be relying on them more heavily during this time.
Secondly, we looked at our expenses and services to determine if there was anything the firm could do without – it wasn’t drastic, though we wanted to be wise about our budget in light of potential changes in revenue.
Finally, we got creative. As a small and nimble team, we are good at thinking outside the box. We have one of the largest projects in New York City right now, the 802-unit condominium Skyline Tower. Since we need to keep momentum going for the project, despite the inability to conduct showings in-person, we partnered with a nonprofit in our neighborhood to launch a new creative campaign. The campaign, #PaintTheTownFromHome, engages people at home with a fun arts and crafts activity. When people post their creation on social media and add tag us, the client donates to a non-profit dedicated to relief efforts for COVID19. The public has been responding very positively, which feels like a major win for our team.
What will you implement after this to plan for future downturns?
Well, our first priority will certainly be hygiene, personal space and maintaining a healthy workplace. I think we will also dig deeper into our creative roots and our community involvement, which has always been a priority for Modern Spaces. However, this pandemic has reminded us how entrenched we are in the community and how important it is for us to come together in order to thrive. I will also be encouraging my team to learn how to use TikTok, as this is a new hobby of mine since quarantining!