Publicity is helpful, but only if handled properly - Focus On: Marketing & Networking

Yes, indeed, publicity can be helpful to real estate owners. But only if it's done properly.

It's a well-known cliche that "any publicity I get is good, as long as my name is spelled right." I doubt that Jeffrey Dahmer would have agreed to that. And I don't believe that it makes sense in the real estate industry, either. Even for the thick-skinned who don't care how they are portrayed in the media, the wrong type of publicity can close the door to useful relationships with co-venturers and lenders, for whom discretion and "proper" image may be a necessity.

In short, unless the publicity is favorable, it may be better not to have the publicity at all. But a couple of examples drawn from the commercial real estate world may indicate how well-planned media exposure can achieve desirable results.

When LVM was retained by a major Japanese-owned company in 1994, its 40-year-old Midtown office building was struggling to compete with more modern towers and fill much vacant space, despite its prominent address. LVM began a media program that imparted a modern, forward-looking image to both the building and its management, focusing on high-tech upgrades and a range of other improvements. The building was repeatedly mentioned in The New York Times, Crain's New York Business, the tri-state-area real estate trades (especially those read by the all-important brokerage community) and other media.

Today, the building is virtually fully leased. When the program ended recently, our client wrote me: "The exposure this property received through LVM's efforts was even more than we hoped for... LVM gave us significantly greater results than had the same dollars been spent on pure advertising."

LVM has represented another major Midtown office building for many years. Two years ago, the almost fully-leased building faced the prospect of some 350,000 square feet coming back on the market in 1996-97.

LVM began an intensive media campaign to reinforce the owner's direct marketing efforts by tailoring numerous trade articles, news releases and newsletters to highlight the available space. For example, in support of a brokers' party, LVM placed a number of articles about the event, which attracted more than 300 brokers. In 1996 and 1997, leases representing hundreds of thousands of square feet were signed.

Recognizing good turnaround potential, the same real estate family recently purchased a large suburban complex. It was then an isolated suburban facility, lacking an identity and sophisticated amenities, and struggling to maintain 40 percent occupancy.

The building had developed a reputation for problems, resulting largely from a series of previous owners with too much debt and too little cash-flow, who neglected maintenance and did little to improve common areas. As a result, it was surrounded by negative publicity.

Our client upgraded the building and refocused its marketing strategy. LVM's task was to place stories about the improvement program in trade and local business publications, and to promote an awareness of the "new" property as a Class A facility.

We achieved numerous positive stories in the general press and numerous trades - not only promoting the property directly but also associating it with the client's reputation for achieving successful turnarounds. While publicity was, of course, only a part of the marketing program, it played a major role in the fact that the property today is more than 90 percent leased.

Of course, a good publicity campaign does not provide the kind of control you get in advertising. But the pay-off can be much less expensive - and far more credible.

COPYRIGHT 1997 Hagedorn Publication
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