In economics the current prevailing theory ends with in the long run we’re all dead. No truer statement has ever been said. The draw back of this way of thinking is that it focuses on the individual and not the collective. I’m not intending this to be an economic argument or discussion. But a way of looking at the world.
Long term decisions are generally those that are made with the intention of outlasting current knowledge and possibly outlasting the current workforce. IBM has been around for over a century because they plan for what hasn’t occurred yet – they plan flexibly.
What does this mean for real estate professionals? Any given client will only be around for the short and medium terms. Your cash flow is only certain in the short term. But real estate assets are going to be around for the long term. If you want to be around for as long as the buildings themselves you must respond to the short term needs and desires of the clients and landlords but plan as if the market itself is going to behave it’s own way.
Plan for the future as if the buildings themselves have a say in the market and are a party with a voice. They won’t have an impact now, but even the short term players are invested in maintaining them and keeping them running optimally. This long term plan will be different for every company out there, but hopefully it will allow you to think differently and stay ahead of everyone else.