Rebirth: Stockbroker, I have market data

Chapter 347: Commercial Real Estate

"Commercial real estate? What does this mean?!" Fang Deyou was confused.

So Xiao Jin started to introduce.

The reason why Xiao Jin mentioned commercial real estate is related to a person who regards [-] million as a small goal.

I remember that year, this man started in residential real estate and later successfully entered the commercial real estate field, becoming a figure on the richest list like a whirlwind.

At that time, with the increasingly fierce competition in the residential market and the motivation of enterprises to pursue risk diversification under macro-control, he decisively made the transition from residential real estate and began to enter commercial real estate. He began to build large shopping malls and hotels across the country, and his business empire took shape. prototype.

Of course, what has contributed to this craze is the huge development potential of the commercial real estate market. As a "pioneer" in commercial real estate, he has summed up a lot of experience that can be used for reference. Xiao Jin wants to tell Fang Deyou about this figure.

Because, for real estate companies that want to transform into commercial real estate, it is important to choose a value chain that suits them.

The first is large-scale real estate development, accelerated urbanization, and the upgrading of residents' consumption, which has brought endless opportunities to the development of the commercial real estate industry. This craze began in 2009.

Many residential developers who have been waiting outside the commercial real estate market for a long time have launched new strategies to enter the commercial real estate field. There are many leading companies. Among them, a real estate giant in Shenzhen gave up the residential specialization route that it has adhered to for many years. There are also companies involved in commercial real estate in Shanghai because the market is so huge.

As time entered 2010, the intensification of macroeconomic control intensified this trend.

For residential developers who are new to the field of commercial real estate development and operation, how can they quickly continue to succeed in this new business field?

This is what Fang Deyou wants to know.

First of all, Xiao Jin helped him analyze that residential developers transforming into commercial real estate can be roughly divided into three categories:

The first type is transformation based on its own strategic positioning;

The second type is transformation based on the need for business balance after scale expansion;

The third category is transformation due to macroeconomic control and risk aversion.

Among them, the third type of transitioners may face greater risks.Commercial real estate development and operations are significantly different from the residential real estate that residential developers are familiar with in many aspects such as business models, capital chains, and core competency requirements.

Companies that enter commercial real estate with a speculative attitude are likely to suffer a bloody blow.

Fortunately, Fang Deyou is not in this third category!

Xiao Jin is not just making up lies based on the historical market data in his head. Being in a securities company, he is exposed to a lot of news every day. Likewise, he absorbs a lot of knowledge. As a popular industry, real estate, Xiao Jin naturally has to pay attention to it.

He had seen an example before:

The problems encountered by a residential developer transforming into commercial real estate are quite representative. The design department, which is accustomed to residential design, is not familiar with the property needs of different business types. The catering area of ​​the commercial property designed the exhaust pipe caliber according to residential standards. However, when the house was handed over, it was discovered that the standard was far from meeting the demand, so the flue had to be temporarily connected to the exterior wall, which damaged the facade and caused a significant increase in subsequent facade cleaning costs.

Another developer that was transforming into commercial real estate had problems with its self-operated business formats. The company imitated other people's self-operated theaters and department stores and formulated an ambitious plan to enter children's department store franchises. As a result, it invested a lot of money. and manpower only to discover that the capital demand and return flow of this industry were completely unable to meet the group's overall financial needs, so we had to give up hastily.

Therefore, Xiao Jin told Fang Deyou: When entering the commercial real estate industry, you must carefully consider your own financial situation, consider clearly the pressure that business structure adjustment may bring in all aspects, seek a balance between growth and stability, and do a good job in long-term persistence. Intend.Don’t blindly think that the commercial real estate industry is a “blue ocean” and blindly “enter the ocean”.

In addition, a strategic model should be built based on the characteristics of commercial real estate.

Commercial real estate that focuses on holding and operating is fundamentally different from residential real estate that focuses on rapid sales turnover. The strategic model of residential real estate companies requires a series of adjustments for commercial properties.

First, set appropriate strategic goals for your commercial real estate business.

A company that is transforming from residential development to commercial real estate development and operation found that after the transformation, the past strategic measurement system was no longer used, and the "asset turnover rate" commonly used in the past no longer seemed accurate, because commercial holding operations may cause asset turnover in the short term. The rate is reduced, but if long-term shareholder returns are taken into consideration, it may just be the right choice.

Speaking of this, Fang Deyou suddenly opened his mouth wide, and Xiao Jin spoke to his heart.

Shareholders, the entire Tengtou Village is a shareholder of its own company. In the past, when I ran the company, I was actually running the company for the entire Tengtou Village. In recent years, the villagers have paid more and more attention to short-term benefits, and they have to do whatever they want to make money. Just now This is what Xiao Jin said. To extend the line, he must convince the villagers.

Another one, how to establish a new strategic measurement model suitable for the characteristics of commercial real estate business?

Xiao Jin said that most residential real estate companies often use "region-product-value chain" to describe their strategies. He suggested that Fang Deyou should target commercial real estate based on the old strategy description system during business transformation. Adjust the characteristics of commercial real estate, set strategic goals suitable for commercial real estate characteristics, and set appropriate measurement standards.

Moreover, the key is to close the capital chain for commercial real estate development and operation and find an appropriate commercial real estate capital chain path according to its own characteristics.

In the commercial real estate development process, the most important funding issue is to increase the turnover rate and prepare enough development funds to achieve rapid rolling development!

The successful experience of the richest man is to find solutions in terms of cost and funding sources. His land and construction installation costs are lower than the industry average, and he focuses on solving development funding sources through multiple channels, including residential and some shop sales, Mature commercial property leasing, commercial property mortgage loans, own funds, other loans, etc.

There are also companies that rely on strong backing to achieve rapid expansion of commercial real estate business in the short term. However, it is obvious that such companies do not have as urgent short-term investment return requirements as private companies, and are more inclined to pursue safe and stable higher returns, which is not suitable. Fang Deyou.

To solve the problem of working capital, especially the capital problem in the initial operation stage, some successful people have established special funds to solve the fund problems at each stage of property operation.

Now that he mentioned this, looking at Fang Deyou's constant nodding, Xiao Jin knew that it was time to show his ability. Isn't it just about making money? I am in finance.

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