Simply Junior

Too often in today’s real estate industry, good works sit unnoticed under the piles of corporate greed and lust money. When the bottom line for a real estate company is also the line in the sand, the agents don’t dare do anything to toe it. Pushed to the forefront are stories of stock prices, revenue projections, and profit margins. What many would see if they dig a little deeper, maybe read past the first page, is that many corporations do indeed give back to their respective communities in ways big and small. This practice has become especially prominent in the real estate industry.

Take for example a couple of real estate agents in Lavallette, New Jersey. Just last month Stephanee Mirachi, who is the Executive Assistant to Broker/Owner Lee Childers of Childers Sotheby’s International Realty, and Budd Rall, Sales Associate from the Childers Sotheby’s Lavallette/Ortley Beach office, participated in the 15th Annual Law Enforcement Torch Run Polar Bear Plunge in Seaside Heights, to benefit Special Olympics New Jersey.

The air was frigid and the snow was fresh as the stage was set the day before the event by a snowstorm hitting the area. Despite the snow and the 38 degree water temperature, nearly 3,000 volunteers showed up alongside Mirachi and Rall to take the plunge. While the temperature was low, the donations were high. The event raised over $750,000 for Special Olympics that will go towards free year round programs that are available to adults and kids with intellectual disabilities.

In Minneapolis, brokers from area commercial real estate firms get together once a year to play in a charity hockey game. The Opus Cup is in its ninth year, and crowds turn out to watch these men hit the ice, and sometimes each other, all in the name of charity. Some are seasoned hockey players that played in college. Both goalies in this year’s game played college hockey. Don’t be fooled- this game is highly competitive and features a number of players who are just as comfortable skating around an ice rink as they are showing people around a property. The event benefits the charity “Hope for the City”, founded by Welsh Company CEO Dennis Doyle. Hope for the City collects and redistributes overstocked items such as food, clothing, and medical supplies. Last year the event raised over $27,000.

In New Jersey, commercial real estate firm Matrix Development Group bought two office buildings and nine acres of parking lots in Brunswick. Rather than settling for just a corporate presence in the community, President and Chief Executive Joseph Taylor began looking for a way to integrate the company into the community in a charitable fashion. Matrix is currently the backer for Elijah’s Promise. The charity is a Soup Kitchen, Counseling Center, and Catering School. In 2007 there were approximately 95,000 meals served to the needy at Elijah’s Promise.

The New York Times recently ran a piece about charity in the real estate industry. That is how relevant and prevalent the two have become together. Within the real estate industry, companies are not only looking to put their stamp on a market by selling homes or commercial properties. From heartfelt grassroots efforts like Kelli Bennett’s to big time undertakings such as Matrix’s Elijah’s Promise, real estate agents and companies are leaving their mark on communities and touching people’s lives every day through ongoing charity work and charity events that are embraced by everyone in the area. Agents once thought of as slick salespeople have been rebranded as agents of change and agents of charity simply by keeping it real.

Many real estate development firms are taking a careful approach to dealing with potential projects in today’s markets. With real estate on shaky ground, a conservative tactic is likely to be the one that will pay off in the long run. Keep in mind, however, that development firms are not shuttering their doors or walking away from the market. They are simply retooling their efforts in regard to construction and development.

So, how are today’s successful real estate firms holding their own in this time of economic trouble? Many are taking these approaches:

Focusing on preparation work – Some developers are simply using today’s lower prices to prepare for the future. This means they are buying up tracts of land to develop on down the road. Much like the land barons of days gone by, they are purchasing – but not building – on speculation. Site work – In some locations that are known for traditionally hot real estate markets, developers are preparing their sites for construction, but stopping short on the bricks and mortar. This action will enable them to jump right in with new residential developments as soon as the market turns. The idea here is to have the latest, greatest development on the market as soon as the economy turns around. Zeroing in on needed residential – As more and more homeowners are losing their property to foreclosure, some real estate developers are trying to cater to their needs. Condo and apartment complexes, for example, that will accept people with shaky credit are in high demand. Some development firms are stepping in to build housing that will fill the needs. Commercial development – While residential development has all but bottomed out, commercial construction continues in many areas. Development firms are finding new life blood building shopping centers, office complexes and other similar buildings. Government work – Some developers are working closely with government agencies to help fill their needs. As many government construction projects continue through despite the economic downturn, this avenue is a solid one for keeping work going and people employed. This is precisely why many government agencies are continuing to build. Smart real estate development firms are filling the needs on this front.

With a slowing domestic economy, the United States has watched a decline in all of its markets, especially the housing market. However, this decline has helped keep New York City’s housing market alive through foreigners. With the continuous deprecation of the dollar and the value of Manhattan real estate, foreigners are now seeing property in the city as a smart investment.

Before, foreign companies doing business in New York would have to put their employees in temporary housing while visiting, but now they are buying condos and having the company serve as the landlord. This is saving foreign corporations thousands of dollars. Temporarily housing an employee in New York City used to be a very expensive aspect of doing business. Many companies used to pay upwards of $4,000 a month in rent for employee housing.

When a firm owns real estate in New York, they are not only saving money each month, but they also hold an investment. New York City real estate has the potential for growth regardless if an employee is currently living there or not.

During recent years, the New York real estate market has remained on a rise, making property even more desirable. However, in international real estate, property in the Big Apple is almost considered cheap. According to a recent survey, New York is the 15th most expensive city in the world, falling behind Moscow and London. And as foreign currencies continue to hit record highs, owning property in NYC seems like an even better deal. When a European buys into Manhattan real estate, they are almost instantly doubling the value of their money due to the exchange rates.

Investing in New York City property is the best option for so many international companies. This growing foreign interest in Manhattan property is actually helping to keep New York’s real estate market alive. Even with a nationally recessing economy, New York City’s economy and housing market remain above the national trend.