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Our Take: How is a small town like a small business?

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Our Take: How is a small town like a small business?

By: Chris Sadler, President, Allegiancy

March 15, 2015

I just spent a day meeting with the Economic Restructuring Committee of the small town where I live: Farmville, Virginia.

Like many small towns, Farmville wants to keep its downtown area vibrant and alive.

As I listened to the committee’s concerns, I noticed how similar they are to most small businesses’. I thought about the similarities that we at Allegiancy see every day with the large commercial real estate assets we manage: we operate each asset like the small business that it is.

A mid-sized commercial real estate asset may produce revenues in the $2 million range and net operating income in the $1 million range. While this is a larger income statement than many small businesses, many of the fundamentals are the same.

Here are the questions I shared with the Farmville, leaders – the same types of questions we seek to answer for our commercial property owners.

1) What are your assets’ strengths and weaknesses?

2) What is your position in the marketplace you serve?

3) How do you compare with your competition?  

Now the Farmville leaders are thinking about what their town has to offer:

What makes it special?

What are its competitive advantages?

Who are its competitors?

Then Farmville’s Main Street Organization and leading merchants can agree on the best course of action to move the downtown forward to meet its goals.

At Allegiancy, we do this every day for the commercial properties in our portfolio – the assets we’re entrusted manage.  In order to position our properties to be successful under any circumstance, we constantly evaluate and reevaluate their position. This allows us to focus our planning efforts – and ultimately our operational and leasing decisions – on those activities that will move the needle.

Whether it’s a small town, a small business, or a large commercial office building, wise decisions start with a thorough understanding of where you stand and then a plan to get to the desired destination. Without a destination in mind, you are not going anywhere. That applies to repositioning a commercial property, or repositioning a downtown.

Chris Sadler manages commercial properties that have outperformed their peers by 45 percent since 2006. The company has approximately $300 million in assets under management and delivers clients attractive returns and profitable, hassle-free investments in commercial real estate.  Allegiancy grew by 62 percent last year, due to referrals from satisfied clients.

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