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Better Engage
Local Communities |
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| New Tools for Developers |
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| By Kurt Ivey |
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C
ommunity relations are sometimes considered an after-thought in real estate development. There is an aversion among some developers, especially national developers, that they have too little influence over how their projects are perceived by local populations.
While many of the traditional, time-intensive tools remain relevant, the Internet has unleashed new tools that enable developers and owners to engage in dialogue with local communities like never before. These tools not only help counter negative criticism, but help build positive reputations that can substantially increase investment returns.
Benefits of Good Community Relations
There is an old saying that states "time is money." When a project delivers next year instead of this year, or an anchor tenant signs next quarter instead of this quarter, the impact on investment returns can be substantially effected — either for better or for worse.
The speed with which projects deliver depends largely on the pace of securing necessary site approvals and on successful leasing. Good community relations can improve the odds of both.
When a developer has a positive reputation and public perception favors a local project, rezoning and entitlements come more quickly, liquor licenses are easier to obtain, competitor's lawsuits are non-starters and infrastructure subsidies are more plentiful. Increasingly, local planning officials are taking a more active role in development — assembling land and bidding out the development rights to private developers. In these competitive bids, a developer's reputation and ability to work with the community and its leadership is a major criterion. Those empowered with these decisions are political by nature and accountable to the public. They want to choose a development partner that will reflect well on them. There are also some projects where local officials or developers directly solicit national partners — a selection process that also relies heavily on reputation.
Retailers too gauge public sentiment towards a project before committing to it. If there is a perception that the project may not deliver on time because of public opposition or that public opposition may impact the success of the center after opening, retailers may look elsewhere for opportunities instead of committing to a project with an uncertain future. Conversely, pronounced support can underscore leasing efforts that tout unmet needs in the community.
There is also a certain freedom that can be gained by having a good reputation. Development plans are not micro-managed and developer decisions receive less second-guessing by local officials. It frees up a development team to focus on getting the project right and merchandising it correctly.
Traditional Barriers
There are several traditional forums for developers to engage in public dialogue with communities and address their concerns. Most often they are sponsored by the local government and include planning board meetings or city council hearings. These
forums, while beneficial, are too infrequent and allow rumors and misinformation to spread quickly throughout the community before a developer has an opportunity to respond.
Traditional forums also encourage community participation by the most vocal citizens who are not necessarily representative of the entire community. The average citizen — too busy or unaware — is not heard.
Local newspapers and broadcast media attend these traditional forums and often form their own perceptions of public reaction based on vocal minorities. With no other alternative sources, the result is often negative coverage — a result encouraged by the media's natural inclination to cover negative stories thought to be more compelling to readers and viewers.
In the past, overcoming these barriers required comprehensive campaigns that were costly and time consuming. Today, the Internet is enabling fast, efficient dialogue with the community which will remove these barriers and opens the door to new opportunities.
Take Control of Internet Dialogue
The Internet is a powerful community relations tool because it enables developers to reach the public directly and efficiently. There are no media filters and no costly ad buys or direct mail campaigns required.
Beginning a few years ago, developers began creating websites devoted to individual projects — a step beyond simply listing projects and related information on corporate websites. These individual sites enabled one-way mass information sharing. However, they did not truly engage the public because there was not back-and-forth dialogue. There was no forum to exchange ideas and no way for developers and others to take the pulse of public sentiment.
Unfortunately, this dialogue void on the Internet is largely filled by traditional media sites and independent blogs. Many local newspapers have comment sections attached to their stories. These sections are anonymous and lend themselves to uncivilized remarks and discussions. There is also no way for developers to respond except with their own anonymous postings that carry little credibility. The same small, vocal minorities that dominate traditional community forums tend to dominate here as well. They also are the ones who create blogs and other websites that may oppose a development.
Fortunately, new Internet tools enable developers to actually control the dialogue in a responsible, professional fashion. The most prominent tool right now is Facebook, a social-networking website with more than 60 million active users in the United States with a growth rate of 250,000 new registrants each day (the 25+ age demographic is the largest growing segment). The website allows individuals and organizations to set-up pages about themselves and connect to others through news updates, photo sharing, event listings and discussion boards.
The benefits of Facebook are numerous. One major benefit is cost: there is no cost associated with creating a page because Facebook utilizes a set template, allowing new pages to be created in minutes. Also, the discussion boards can be moderated and inappropriate content removed. The Facebook community is made up of real people and therefore comments tend to be more thoughtful and responsible than other non-moderated, anonymous Internet forums. The discussion board also allows a developer to participate in the dialogue by combating misinformation and articulating persuasive arguments for various plans and decisions.
Another tool is Yelp, a rapidly growing social-networking site focused primarily on reviews of local businesses — including shopping centers. Yelp highlights the "real people" approach and allows business owners the opportunity to customize and participate in their businesses' review forum. This tool is especially valuable for redevelopment projects because existing customer reviews can be powerful illustrations of the need for repositioning or redevelopment. It also provides a built-in focus group for testing new ideas and soliciting feedback on potential new tenants.
By using Facebook, Yelp or similar Internet tools, savvy developers begin building a reputation for good community relations. Taking the time to create forums and to participate in such dialogues illustrate a much deeper desire to work with the community than simply attending traditional town meetings or advertising in the local newspaper. There is also substantial media attention focused on businesses that use Internet tools in new ways and therefore early adopters can reap very positive local and national publicity.
Responsible Implementation
There are obviously certain projects that require greater community input and support than others. While the Internet offers an opportunity to engage the community in ways not possible before, developers must also be responsible in how and when they engage in dialogue. There is a fine line between soliciting feedback and allowing the community to dictate project planning. At the end of the day, the best community relations come from creating projects that respond best to consumer needs and that reflect local culture. Tools like Facebook and Yelp are simply efficient ways to reinforce these attributes, gain greater insight into local communities and demonstrate a developer's commitment to doing what is right.
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Kurt Ivey
SVP, Corporate Marketing and Communications
Kurt is responsible for all branding, corporate identity, public relations and corporate communications functions. He has over 16 years of experience in the real estate industry. Kurt has a Bachelor of Science degree from Texas A&M University and is member of ICSC, ULI, and frequently serves as a guest speaker at industry events and universities. |
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