Effective communication isn’t easy, but it’s even harder when everyone is talking about how their industry could be in trouble.
That’s the state of affairs in commercial real estate (CRE) these days, with all the negative headlines. As if the pandemic-related news wasn’t enough, concerns about local banks began to spread earlier this year, causing further disruption to the industry. Rising interest rates and increased scrutiny of lending are contributing to the negative headlines about the $20 trillion U.S. CRE market.
In times of market uncertainty, strong, clear messaging is essential to building and maintaining trust. That’s why it’s important for CRE companies to communicate in a way that effectively and confidently tells their story to stakeholders, no matter what the headlines say.
don’t stay in the trenches
While it may be tempting to avoid external events like conferences and media interactions, now is the time to tell your story and build your narrative. The questions and comments are likely to be tough, so it’s up to you to acknowledge the challenges, accept the current environment, and focus on where the opportunities lie. Addressing negative issues immediately also helps establish and maintain credibility with stakeholders.
Then, pivot to the opportunity in front of you. Share interesting investments, such as specific regions or sectors. Provide your audience with anecdotes backed by compelling data. Where are the green shoots? Remind your audience that there are larger factors at play. For example, if an economist (or a particularly well-respected economist) is starting to change his opinion about the likelihood of a recession, use that to strengthen your message. If the drumbeat of negative news doesn’t reflect your company’s position, it’s up to you to defuse the noise.
If you’re still wary of external communication, change your strategy to focus on content you own. These platforms, such as company blog posts, newsletters, podcasts, and bylines, give you the opportunity to control the story while expanding your perspective to your target audience.
Communicate your plan and do it again
Once you recognize a problem in your industry, let stakeholders know you’re working on it. Also, don’t save it just for investor day. Create concise, detailed descriptions that are easy to understand and address the biggest questions your stakeholders want answered.
Next, select a bench of corporate ambassadors and spokespeople who can convey your narrative in a consistent way across platforms. Stakeholders want to hear from individuals, but if that person doesn’t have good communication skills, your message won’t be heard. Set up training and practice sessions that include role-playing to help you anticipate tough questions from reporters, investors, and policymakers. Record the session and watch it later, looking for any stumbles or inconsistencies.
Then it’s time to hammer the point home again and again. The best way to leverage spokespeople and their unique expertise is through a variety of channels, including LinkedIn, media appearances, appearances at appropriate events, and winning awards that establish you as an industry leader. That’s it. It may sound repetitive, but each outreach on each channel can reach new audiences.
These thought leaders can also gain industry trust and visibility simply by serving as a resource and educator to their audience and communicating solutions that are tied to the company’s story and value proposition. Be familiar with key industry data, including comparisons to past quarters and previous years.
don’t forget your employees
Your employees have likely seen and heard a flood of negative news hitting the CRE industry, causing confusion and uncertainty about their jobs and careers.
Fortunately, corporate leadership has an advantage in influencing this important audience. According to the 2023 Edelman Trust Barometer, three-quarters of respondents agree that trustworthy CEOs always tell the truth, even if it makes it harder to achieve their goals. Additionally, Edelman’s recent Trust Barometer special report, “Trust in the Workplace,” found that employees say they trust communications from their employers more than from government or the media. That means your employees are the brand ambassadors of your story.
Take the time to regularly communicate with your employees about the current state of the industry, not just about your own company. Discuss how cultural changes such as returning to the office and hybrid work policies are impacting your business. If your company has offices in multiple regions, tailor your conversations to developments in your local area, such as the construction of new apartment complexes or office parks. Explain why these examples are important signs for the industry and your company.
Finally, Edelman research shows that more employees are already sharing and posting content about their employer on a weekly or more frequent basis, increasing their optimism about the company and industry on their personal social channels. We encourage you to share.
adapt and evolve
There are no static narratives, and that is especially true in the CRE market situation. It’s important to adjust your story to reflect new accomplishments, challenges, and goals in a way that’s useful and authentic to your audience. Adjust your messages in real time to ensure concerns are addressed while demonstrating transparency. As you keep your audience updated, highlight your perspectives, solutions, and strategies to continue building trust among stakeholders.
After all, effective communication is a continuous process and requires adaptability and reliability to demonstrate resilience. When your audience tunes in to your industry and hears bad news, you can leverage these communication tools to make the best out of a difficult situation. A communication strategy like this will help you see the corners and strengthen your message so you can focus your energy on achieving your strategic business goals.
Christine Broad, senior vice president, who leads commercial real estate with Edelman-Smithfield, and Katherine Costakos, vice president. Edelman Smithfield is a global financial communications boutique specializing in financial markets and strategic situations.