Great preconstruction is equivalent to having a great game plan. Everything is well thought out, critical success indicators and milestone have been clearly identified, each team member is prepared and any variables are accounted for. In short, you are setup to win from the start.
On the contrary, bad or inaccurate preconstruction is the same as walking your team on the field with no preparation. Nobody has put together a solid master budget, the overall schedule is rushed, key milestones are not identified and key players have not yet been brought to the table. The project is setup for failure from the start.
No one goes car shopping looking for a brand new, high-end sedan and winds up in a 6-year old SUV on accident. Yet, this similar scenario happens all the time to prospective tenants when “shopping” for new office space in the Austin commercial real estate (CRE) market. In a market as competitive and saturated as Austin, great, accurate and transparent preconstruction should be a requirement, not a nice-to-have. This is the norm in other major markets…why not Austin?[su_note note_color=”#eeeeee” radius=”10″]There are two general types of providers in the commercial real estate industry:
- Those whose primary goal is to provide accurate information and set realistic expectations. As a result, this typically develops career-long relationships. Making money is important but it’s a bi-product, not the driver.
- Those whose primary goal is to make money and drive revenue, regardless of the client’s experience. This usually includes providing inaccurate information, selling unrealistic expectations and relationships that don’t last.
With so many components that go into each real estate deal (tenants, owners/landlords, property managers, brokers, architects and designers, general contractors, subcontractors, furniture, data cabling, etc), it’s important that deals are setup properly and the right steps are taken throughout the process. When it comes to delivering great projects, the fundamentals and great execution are critical to success.