On the ground: the Hidden Power of Local Relationships

Real estate investment requires the same strong foundations as building a property. Establishing relationships with local communities could be the difference between a legacy investment and one that struggles to get off the ground.

Gilberti Group’s investment strategy is anchored in a deep understanding of local market trends and requirements. We believe trust is a hidden tool that provides superior access to market insights and propels real estate investment performance.

Understanding the lay of the land

Early engagement with local communities greatly improves investors' market understanding and project feasibility. Investors can learn about neighborhood trends, upcoming developments, and community priorities by meeting with local municipalities and stakeholders. 

Investors should harness market insights to shape their investment strategy to reflect market trends or fluctuations, which can help them better plan for the future. Similarly, engaging with local requirements of civic groups aligns project goals to the community and facilitates a smoother approvals process that mitigates against potential development backlash. 

These actions are an integral part of real estate due diligence that will improve underwriting accuracy for potential projects and significantly impact long-term revenue returns. 

Reading the fine print 

All local municipalities have unique political environments that shape real estate regulatory frameworks. As an investor, knowledge of the local zoning laws, building codes, and environmental regulations is essential for the smooth delivery of development projects. 

More so, building relationships with local authorities gives investors the position of a valued stakeholder in the community. A stakeholder is more likely to be consulted on future community development plans and potentially influence decisions on zoning approvals, permits, and other regulations that significantly impact a property. 

Building a network for delivery

Aside from connecting with regulatory bodies, local relationships should extend to connecting with brokers, developers, and property managers. These individuals will have access to early insights into new real estate opportunities and can, through their knowledge, support improved deal flow and pricing leverage for investors. 

Additionally, a foothold in the local real estate industry will improve project delivery times through supply chain access to local contractors, legal advisors, and property managers. The value of these relationships should not be overlooked; they reap rewards on both sides with improved maintenance services for tenants and thus higher satisfaction and returns for asset holders. 

Strong partnerships with the local community can also facilitate better market negotiations on lease renewal and tenant replacement issues during economic downturns. With fluctuating market trends, investors create strong industry networks better positioned to navigate turbulence. 

Community trust

Investors who are actively interested in a local community routinely see higher tenant satisfaction. Engaging in regional projects such as charity events and sustainability projects or working with local businesses builds trust and confidence, and tenants are more likely to renew leases, which ensures long-term occupancy stability.

For low to moderate-income areas, structuring projects around community-led goals has proven to generate significant impact and strong positive market outcomes. 

A lasting legacy

Community engagement can go beyond monetary gain; for some investors, there is a holistic value obtained through connecting with tenants on neighborhood initiatives. There is an intrinsic value in contributing to community well-being, improving infrastructure, and improving residents' quality of life.

Further, brand equity is enhanced with real estate projects that leave a positive legacy. Not only does this return personal satisfaction, but it may also attract future partners through a strong positive reputation in the market; investors who engage in community events typically experience a 20% increase in brand recognition and client referrals. 

Be it for operational performance or personal connection, establishing and harnessing local relationships as a real estate investor is a powerful tool that is often overlooked. At Gilberti Group, we consider communities' immediate and future needs, facilitating productive relationships with partners and stakeholders to bring real value to tenants and partners alike that external investors cannot achieve.