“Survive ‘til ‘25? Go Out and Thrive!” – Communications Can Keep Real Estate Visible During Deal Slump

“Survive ‘til ‘25,” i.e., somehow make it to 2025. The unofficial slogan coined at EXPO Real 2023 continues to resonate beyond the turn of the year. The real estate industry is facing numerous challenges, be it persistently high inflation, rising interest rates, the cost of construction or geopolitical and economic uncertainty. Although the latest acquisitions and most significant sales used to make up the headlines, now one would more likely see discussions of corporate insolvencies and restructurings when browsing the daily news. The most prominent example in recent years is the collapse of Signa’s empire. After years of growth, the bottom line is that money is now exiting real estate funds across the sector and investor confidence is wavering.

Deal slump paralyzes communications

The commercial real estate segment has been hit hardest by the slump. According to figures from BNP Paribas Real Estate, the transaction volume in the UK in 2023 is down by around a third on the previous year. A low volume market has a significant impact on the communications strategies of many companies in the construction and real estate industries.

Communications in the real estate industry is primarily deal-driven. This makes sense in good times when it can effectively address key target groups at the same time, which sharpens the profile of active players on the market, in turn helping to fill the deal pipeline. Simultaneously, it enables companies to stay on the radar of project partners and investors and remain in contact with asset and property managers. It also provides an avenue to conveniently address trends such as working from home or increasing online trade.

Since the transaction business collapsed, what worked in good times is no longer viable. In the current climate many market participants are finding it difficult to maintain a presence in the media. Without exclusive deal news, journalists search desperately for topics to fill their pages — often in vain. At times it can seem as if the real estate industry has lost its tongue.

Radio silence harbors business risks

However, developers, administrators, investment, asset and property managers, fund companies and PropTechs would do well to keep their public relations work going despite the lull in deals, especially amid crisis. After all, prolonged radio silence harbors risks: Potential sellers lose sight of a market participant as a possible interested party. Development companies no longer perceive him as a solvent player on the market who can participate in project financing. Investors no longer have him on their radar as a portfolio manager. In addition, relationships with journalists that have been built up over many years are at stake. In short, there is a risk of losing visibility and credibility — nothing less than the basis of the business. “Survive ’til 25” thus becomes even more of a (communicative) gamble.

Evergreen topics work independently of the market

But what can one do if there are no stories about deals? One option is to focus on market-independent thought leadership topics, like digitalization and sustainability, for example. This is where classic “hard work” can offer exciting starting points: How can assets be optimized with regard to ecological aspects? Which measures to improve energy efficiency and reduce CO₂ emissions are effective? How can properties be optimized from a social perspective? Depending on whether the assets are managed in-house or not, the role of property managers is also interesting to examine. The same applies to the wide range of innovative technology solutions that can help to make not only buildings but also the entire real estate sector fit for the future. Anyone who has well-founded views on this or even concrete practical examples, ideally presented as part of site visits, can score points with the media. In order to be perceived as a thought leader in a certain area, LinkedIn is of course also ideal. High-quality informative content combined with active networking on the platform should give the positioning an additional boost.

Letting others have their say

If there is nothing to say at the moment, organizations can make use of others’ perspectives. The individual results of a survey among business partners, for example, can be worked out in more detail and viewed from different perspectives in a practical way, such as in the form of joint interviews or expert contributions. There are many topics that stir the emotions in the sector: How does inner-city retail need to be designed in order to respond to changing purchasing behavior? How can the new requirements regarding energy efficiency be implemented? In which areas are technological innovations being used? How can financing be structured in an economically sensible way in view of higher interest rates? How can the notorious housing shortage be countered, especially in large cities?

Educational formats such as fireside chats or master classes with journalists are one way of remaining visible to the media. This allows real estate professionals to strengthen and expand their media network behind the scenes when the news isn’t as heavy. This doesn’t even have to happen on the record. Maintaining contact and providing an assessment in the background is also time well spent. It prepares the ground for proper reporting by giving journalists the knowledge necessary to make the right assessment. After all, not every journalist has experienced such a turbulent market environment during their professional career.

Systematically tapping into new stakeholder groups

The example of educational formats specifically for journalists also shows the great overarching opportunity that lies in the current situation: Now is precisely the right time to actively establish contacts that may have been neglected in the past. In addition to journalists, these can also be relevant politicians, authorities or interest groups. Investing in an even stronger, more comprehensive network will pay off in the medium- and long-term, as it underpins a real estate company’s legitimacy and credibility.

Incidentally, this approach applies to a market participant who finds itself on the defensive as the road to 2025 becomes even bumpier. Even in these cases, staying silent will usually remain the worst option. After all, trust is the hardest currency, especially when the chips are down, and credibility and a stable, viable network are indispensable prerequisites for this.

Seizing opportunities right now

“Survive ‘til ‘25” is primarily a hopeful slogan so far. It remains to be seen whether the market environment will brighten noticeably over the next twelve months, making it all the more important to find new ways to remain visible and relevant on the market through professional communications, independent of deals. This is the only way to take a leading role in shaping the recovery that will undoubtedly come with a strengthened reputation. Those who take this to heart are investing smartly, even in times of slow deal flow.