The Benefits of Staying Local in Commercial Real Estate
Southeast Venture has played an important role in Nashville’s development for nearly 40 years. Many commercial real estate firms choose to become part of a national company after establishing a brand in one city, and there are certainly benefits to this, including reducing market dependence.
Southeast Venture chose to focus efforts – which encompasses our real estate, design and development services – exclusively in Middle Tennessee. In turn, we have reaped the benefits of deep roots planted in Middle Tennessee. Some of the key advantages of maintaining a local focus are:
An in-depth knowledge of the market
National commercial real estate firms tend to specialize in many different markets, but it can sometimes be difficult to be a “jack of all trades.” Some would argue that national firms sacrifice having as deep an understanding of the markets in which they operate as local or regional firms.
With nearly 40 years of experience in Nashville, we have learned a lot about our home market. By working through Nashville’s economic booms and recessions, its massive population and tourism growth and the flood of 2010 – to name a few – we better understand the market’s tendencies. We have seen Middle Tennessee through its growth spurts, downturns and every day in between.
Deeply understanding the Middle Tennessee market has allowed Southeast Venture to develop a unique structure, offering clients real estate, development and design services from one synchronized team. Expanding nationally – or being purchased by a national firm – likely would have required us to choose a specialization and ultimately would have disrupted our creative flow.
A positive reputation and deep roots
Relationships undeniably play a large factor in real estate. By focusing on one market, firms can create deep and meaningful relationships within it. That’s how Southeast Venture has become a go-to for major developments and land transactions in Middle Tennessee, such as MetroCenter and Silo Bend, and we are proud to have positively contributed to Nashville’s economy.
Namely, the city invested next to nothing into MetroCenter, but property taxes have grown from $17,000 per year in 1971 to more than $13 million per year today, excluding sales, franchise, excise and hotel taxes.
The relationships between local brokers and the community are mutually beneficial – the broker gains business from friends and peers, and the community receives top-notch service from the brokers who live and work there. When doing business among friends and peers, brokers will deliver exceptional service and undivided attention.
A strong organizational culture
Company culture has become one of the most important aspects of a business, but as a company grows, its culture will naturally change. The regular company-wide outings and individualized attention valued by employees are more difficult to provide in a multi-location firm – activities must be planned far in advance, and policies must be set to avoid the appearance of favoritism, for example. Staying local allows firms to provide the tight-knit and specialized culture that so many job seekers are currently searching for.
It’s counterintuitive to suggest that not growing is a good business decision, but that’s not quite the idea. Rather, Southeast Venture has chosen to forego growing wider across multiple locations to grow taller here in Middle Tennessee. Clients here can count on dedicated service from Southeast Venture across its catalogue of commercial real estate services.
Check out some of our most recent local projects in our portfolio.