Coronavirus, and the international health crisis that followed it, has had a profound impact on the real estate industry. There is uncertainty, but from my experience of dealing with the Caribbean’s largest mixed-use project, I know that there are solutions and principles to help stakeholders navigate the challenges.
In the Caribbean in 2008, disaster struck as I was busy building a resort. Financial crises hit the company during a crucial time for its development. The development was halted, then slowed down, and finally forced to close. The anxiety caused by the situation was crippling. Over 350 customers and creditors were negatively affected. The financial crisis of 2008-2009 threatened to wipe out tens of millions in investment dollars and all the goodwill generated by the realization of this island paradise. After experiencing a life-changing experience, I realized what it took to lead a company through a difficult time. While your first reaction might be to rush to solve the problem, you may think that this is a sign of your strength. Caution! Do this at your own risk! Your employees, clients, and stakeholders may assume the worst if you don’t communicate. Let everyone know the situation. Even if there is no solution at this time, you are still working to find one. Transparency is key. Transparency is the best way to build trust and create the foundations for future growth and green shoots. If you give people the chance to fully understand your situation, they will respect any options that are presented to them.

Invest the time to personally reach out to your key clients and investors beyond a newsletter or conference call. They will be grateful and give you vital support. It pays to make personal calls to important people. In my project I personally called over 400 people. #2: Engage stakeholders for solutionsInvolve clients so they can be part of the answer. It is likely that you will involve hundreds of individuals, each with their own unique skills and perspectives. Your clients will not always be able to provide the perfect solution, but they are willing to share their ideas and help. You will be amazed at the results you can achieve when you give them a voice and an interest in the outcome.

In my project, I renegotiated over 350 contracts using a creative approach that worked for both parties. This resulted to the removal of more than $30M in liabilities from the balance sheet, and helped the business get back on track. The 350 phone calls saved the company and its clients millions of pounds and allowed us to complete the island resort. It was a “team approach” that was innovative and it was the people who worked together to save the project.#3 Optimize Workforce & ExpensesYou can’t afford to have team members who aren’t 100% committed to the business or the client. Your employees and you must be open to doing things that have never been done before, regardless of whether they are listed in the job description. It is not acceptable for an executive to be too important to reach out and help clients when needed. In times of crisis, a “servant/leader” philosophy is crucial in building trust and leveraging the contributions of creditors, clients, and stakeholders.

After the initial fallout all executives left at my project began working on various initiatives, some suggested by informed clients. In one case, we shifted from selling second homes to creating a fully-functional tourism entity. You will need to refocus your marketing efforts in a creative manner. Focus on your employees, clients and partners. Take advantage of internal talent to develop a strategic plan. Continue to communicate. You are now selling patience, trust, and confidence. #5: There’s always a solution for every problemProblems don’t have to be binary. There are ALWAYS a multitude of options to consider and evaluate. My experience of renegotiating over 350 contracts with sophisticated investors has taught me that no two deals are the same. I had to constantly be creative and flexible. We created win-win solutions in the end and restarted our company. There are always solutions.

Conclusion: Every situation is unique. You are probably feeling the same as your competitors right now. Be a leader, and use what you know. You will be defined by these moments as a person, and a professional. With the right attitude, you can achieve amazing things.