Speaker 1 (00:00): Another great show General Contractors Baton Rouge!
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Speaker 2 (00:09):
Welcome to the K-Cup, the official podcast at Kelly Construction Group. I’m your host, Joe nor Tripp, and I am here with CEO and founder John Kelly. Thanks for having me, Joe. Thanks for being here, John <laugh>. So today, should we start over? Yeah, let’s go. Alright. That’s pretty funny. Today we’re wanting to talk about the opportunities that exist between the commercial real estate space and the general contracting space. What motivated us to want to do this for episode three is that we’ve had these opportunities to collaborate with commercial realtors through efforts of our own really to reach out and, and, and make it known that we want to collaborate. And these have turned into some great opportunities for them. They, they got the close some deals, and for us, we got opportunities to do projects, which to this day, we ha still have relationships, ongoing relationships with those clients.
Speaker 2 (01:01): Collaborate with CRE professionals General Contractors Baton Rouge.
So we wanted to make all those in the commercial real estate space that may see this, aware that there’s opportunities to collaborate with builders far in advance of you know, you have a deal. And we want to get those relationships going right now and, and and try to facilitate bringing a higher level of service to your clients. So we’re gonna talk about three specific opportunities where we can help you close a deal and or at the very least, move a deal forward to the next step so that your client can make an informed decision about the space that they’re considering. So, opportunity number one is when you have a client and they’re interested in a space or a parcel of land the very next thing that they need, once they decide that they like a space, the very next thing that they need is they need numbers.
Speaker 2 (01:56):
Before they can, you know, move, move ahead. They need to know what is the cost to get this space ready to be occupied and be open for business. And that is the opportunity for you to use us to get a budget. And we’ve provided budgets many times for commercial realtors, and at the very least, it allows their client one, it keeps you engaged with your client because rather than you just saying, oh, you like the space, well, let me know. You know, if you wanna do something with it, if you wanna write that lease, let me know. And you just let ’em walk away. Rather than doing that, you’re gonna take them to the next step and hand them over to a general contractor, so to speak. And in other words, by means of us talking with them and you and find out what they need and what they’re looking at so that we can provide a budget and they can make a decision as to whether or not they wanna move forward. So that is the, the, the very first opportunity that we think probably happens weekly out there in the market. And and yet the phone doesn’t ring. So, you know, we want you to take advantage of this opportunity and reach out to us and let us help you out. Let us help you maybe close that deal that wouldn’t otherwise get closed and keep that client in play. What do you think about this first opportunity, John? What, what, what would you highlight about it?
Speaker 3 (03:19):
Well, you know, building relationships with commercial realtors, it’s, it’s not something that’s new for us. I mean, I started trying to do this 17 years ago when I started the business. One of the first things I did was reach out to some commercial realtors, set some appointments, go to their office. Yeah. You know, fortunately at the time it was, I was a lot younger. We didn’t have a near experience not no real resume to speak of. So it was a little bit tougher to get that conversation going. Yeah. But 17 years later, here we are doing the same thing. And, you know, fortunately now we do have a lot better reputation. We do have a big resume. Yeah. We do have lots of things that we can offer. And so what I like most about opportunity number one, is that we can bring real accurate numbers.
Speaker 3 (04:03): Let’s keep going General Contractors Baton Rouge.
We, we give our realtor, you know, partners accurate numbers that they can go back to their client wheel with confidence mm-hmm <affirmative>. Because this is what we do every day. Yeah. so they can take those numbers and they can help close the deals with, with real world numbers and not just some figures that was pulled outta the air. Yeah. But they can go with confidence knowing that, you know, they have a reliable source that’s put together these numbers. Yeah. That, that’s the biggest thing that I like about opportunity, number one. The other thing is just we know this opportunity exists because we’ve done it time and time again. Right. We, we have a job that we recently, you know, recently finished it here in the last year or two. And out of town, out of town company comes in connects with a realtor that we’re communicating and working with mm-hmm <affirmative>.
Speaker 3 (04:51):
We’re able to put together a deal that that brings some, you know, money to all of our local subs and local economy, if you will. We were able to hire architects and engineers. We were able to hire all of our local subs. Yeah. even some equipment vendors and stuff like that. Yeah. And so it was just a, it was just a cool opportunity to see it work. And we know they’re out there. We’ve done it multiple times. And, and honestly, that’s the kind of opportunities we’re looking for. We wanna be able to come in on the front end, bring some value, and put together a project that can really affect a, a lot of companies.
Speaker 2 (05:23): Another great point General Contractors Baton Rouge.
Yeah. Yeah. Yeah. That project that you’re talking about you know, that happened because we were making a similar effort like we are now to, you know, let that particular realtor know that we were alive and had a pulse, and that we were here ready to collaborate with them, ready to be of service if we could. And you know, as it often happens, we know sooner made that, you know, offer to them. Then sure enough, they, they got a lead. And it was, like you said, for an out of town client coming into the, the area. And we were able to join up with the, the realtor and service that client. It turned into a very nice project for us. They closed the deal on a large parcel of land. You know, and, and as a result, we, we had a nice project and we have opportunity for more projects going forward with this same company.
Speaker 2 (06:18):
We have an ongoing relationship with them. They were very happy with, with the whole experience from realtor to, to builder and, and everything. So it turned out really great. And we know that there’s countless opportunities like that that could happen if we could just you know, get together with y’all before the client goes dark and, and you know, the lead goes cold and, and they just kind of disappear just because they don’t have that opportunity to go to the next step and figure out what the cost is gonna be. So yeah. That’s, that’s a great great point that you brought out about that opportunity that we did experience. And we know there’s a lot more to be had. Well, let’s move on to the second opportunity. And this has to do with, you know, like really the, the pre-purchase or pre-lease time period there, you might call it the due diligence period or, or whatever.
Speaker 2 (07:11):
Say you’re a listing agent, for example. And you, you get the opportunity to list a space for lease or list a parcel of commercial land. You know, just like in the commercial or in the residential space, a lot of times agents will recommend to their, to their seller that they’re representing to go ahead and get an inspection done. And that way you can find out where all the squeaky wheels are prior to listing the property. So that any of those things need to be addressed. It can be in the way the contract is either structured or maybe just go ahead and take care of some of those things. So they’re not a problem. So when you get a client, you can actually get the property closed. Well, it’s the same with the commercial space. A lot of times, a a third party inspection company may be hired, excuse me, and an inspection may be done.
Speaker 2 (08:02): Stay with us now General Contractors Baton Rouge.
And then what needs to happen at that point is, is some value needs to be assigned to those items on that inspection. So you end up with this, you know, this list, this multi-page list of items. But what we can do as a contractor is we can take that report and we can assign labor costs where there might be labor needed to, to straighten something out more so than say material, but material costs and, and, and all those different things that could be red flags that could throw, you know, a monkey wrench in your deal later if they’re not addressed prior to showing the space to potential clients. So and if you’re a, you know, a buyer’s agent or a lease Lisa or leases agent you know, know, knowing what these things are in advance also gives you leverage to negotiate on behalf of your clients.
Speaker 2 (09:01):
So whether you’re you know, a listing agent or a buyer’s agent, it doesn’t really matter on either side of that equation. By having a relationship with the general contractor, we can interpret those reports. You know, sometimes whatever’s needed to be done doesn’t necessarily require general contractor, but guess what? We have a lot of subcontractors that we work with throughout the year, and we can get you together with one of those and and, you know, address exactly what needs to be taken care of. So a lot of opportunity there. We mentioned that it does give the, you know, the the buyer’s agent or lease, or Lisa, or I’m not sure, which is the proper terminology for, you know the one that’s gonna actually lease the space, but you get the point if you’re representing that person that’s going to lease the space, it gives you leverage to negotiate a, a better opportunity for them. So what do you think about this second opportunity, John?
Speaker 3 (10:01): We’re almost to the home stretch General Contractors Baton Rouge.
Yeah, I mean, again, just looking at ways we can bring value to that commercial realtor. I think the thing that we’re looking to do is give ’em confidence going into their deal. And, you know, a lot of times on these reports, it may not need, you may not need a general contractor to take care of a lot of those, but what we can do is we can kind of reiterate what we think is critical and what we think isn’t critical on that report. The other thing that we can do is we can give them reliable sources for the, for the work that does need to be done. If they don’t, if it’s not gonna require a general contractor, like you said, we have plenty of subcontractors that we work with on a day-to-day basis for sure. That we know could go tackle this problem at a minimum, give ’em a cost, you know, to have the problem remedied so that they can go into the deal with that leverage that you discussed. Yeah. so that’s, that’s the main thing that I, that I see, you know, is just even in this opportunity, we can still offer value. We can still give ’em information that they can go into their deal with confidently.
Speaker 2 (11:02):
Yeah. And that’s a great point that you made. Like, even with a subcontractor scenario, if it doesn’t require a general contractor, if, if we’re gonna put you together with one of our subcontractors, you know, we, we procure quotes, you know, from subcontractors in our bidding and estimating all the time. So it’s not unusual for us to, you know, meet with a sub or have a sub go look at something and then provide a number for us. So it, it’s still one, you know, it’s, it doesn’t mean that because we’re not involved that you, you still can’t get a quote before you have to act. We can, you know, through our relationship with those subcontractors, we can get ’em to work up a quote for you so that you have the opportunity to see what it would cost, and, and then you can go from there. But either way it’s, you know, information is leveraged and, and, and power in that it’s, it makes it easier for you to close a deal if you know what you’re up against. So look at it in that regard.
Speaker 3 (12:03):
And too, you’re, you’re connecting them with a trustworthy source. You’re connecting ’em with a company that we’ve done business with, that we have competency in. That’s right. It’s gonna take care of their
Speaker 2 (12:12):
Business. Absolutely. Yeah. And, and by having this relationship with us, if we recommend somebody and, and for whatever reason, it doesn’t go quite as planned, you have a recourse, you know, outside of them, you can Sure reach out to us, and then we can reach out to them and, and you know, find out what, what’s going on. So again, just makes it a great opportunity for you to have this resource, and it widens your ability to bring service above and beyond to potential clients and keep them you know, engaged so that they, they just don’t go away. So, all right. So that was opportunity number two. So opportunity number three is, is really talking about, you know, the market at, at large, particularly in the greater Baton Rouge area. We know that there is a ton of building going on, but we also know there’s a ton of existing commercial spaces in some situations these spaces quite the cold, huh?
Speaker 2 (13:16): Almost wrapping it up General Contractors Baton Rouge.
Yeah, I’m, I’m dried out, man. I need some water. <Laugh>, I’m gonna have to cut that out anyways. So in a lot, in a lot of situations now, we have a lot of existing spaces that are, are feeling the competition of these new commercial spaces being built up around them. And we know that you know, if you’re representing a property management group, or if you have commercial property investors, you know, occupancy’s a thing, they, they worry about that. So you can use this as a resource to find ways to address these situations where you can maintain comp, your ability to compete in the market. For example you know, we’re up to date on all the latest you know, facades and retrofit systems and things like that. We also you know, can advise you on what amenities you might wanna update in order to be able to keep a property competitive with, with new builds, whether it’s a updated HVAC system or, you know break rooms or restrooms, whatever, whatever the case may be, we can advise you on, on how to update that property to keep it competitive in a very competitive commercial market right now.
Speaker 2 (14:35):
And what, what do you think about that opportunity, John?
Speaker 3 (14:38):
Yeah, I think where we can bring value here is just, you know, oftentimes if somebody’s looking to upgrade a facility, they usually have a budget. So we can, we can take that budget and we can offer, you know, suggestions on how to use it, what materials to, to, to build with. Yeah. And that kind of thing. Again, to give some accurate cost. Yeah. That an accurate way to use their budget, if you will. Yeah. the other thing, the other thing that that we could do here is you mentioned retrofits. Mm-Hmm <affirmative>. You know, I think retrofits are something that kind of get overlooked, but I know that there’s a lot of times where end users or building owners would like to update their building, but they just can’t find a good window to stop long enough to make that happen. Yeah. And that’s the cool thing about retrofits are, you know, retrofits we can go in and basically renovate the, the building with, with no real stoppage and work.
Speaker 3 (15:34):
Yeah. so just things like that are places that we can really, you know, really bring value in these types of situations. Yeah. And again, we know these opportunities exist. We’re, we’re working on two of ’em right now to where basically they’re looking for just what we’re talking about. They want some facade upgrades. Yeah. They’re trying to keep up with the buildings and the surrounding areas. Yeah. and we’ve been able to provide this, this feedback and, and meet their budgets to get their projects up and going. Yeah. So we know these opportunities are out there, and we just looking to, you know, give a hand when we can.
Speaker 2 (16:06):
Yeah. It makes me think of one a multi-unit commercial space that we were hired to, to fix. It needed some, you know, the units all needed some badly needed exterior updates. And to the point where the, the, the updating was starting to turn into a structural thing, we were able to go in there basically, you know, you know, like surgically remove and replace elements of the facade. So that occupancy was maintained the whole time while we were working. We did it in a very methodical way. And it didn’t affect you know, the residents the residents ended up with a superior product once we were done. And and, you know, safety was increased aesthetics was increased and serviceability was increased all, all done while the property maintained occupancy. So it can be done, but that’s where our expertise and experience comes into play to be able to help you with that.
Speaker 2 (17:09):
And by you having a relationship with us and, and us being able to have these kinds of conversations that’s something that would, would just flow naturally when you talk to a potential client and and they ask you, you know, well, what about this? You can just explain very easily how it can be done and how occupancy can be maintained in that property and, and revenue not lost while these improvements are made. So, so those are three opportunities that we think would be great. We can provide budgets. We can you know, help you interpret property inspection reports so that you can assign a cost to the different elements there and, and know what you’re up against as far as getting the property ready to, to be on the market or be occupied. And thirdly, we can, you know, help those properties that are feeling the pressure from all the competition in the commercial space.
Speaker 2 (18:10):
We can you know, advise you on how those properties can be updated in, in the most effective way and the most efficient way. And stretching those, those dollars as far as you can, and getting the best bang for your buck while you know, in some cases maintaining occupancy where the property’s being occupied currently. So anyways, we look forward to having opportunities to collaborate with you. Please reach out to us follow the show. You can follow the show on YouTube at the K-Cup, and follow us on LinkedIn, on our LinkedIn page at Kelly Construction Group. Don’t hesitate to reach out and contact the office if you need to, if you want to talk about anything. You you may see me out there knocking on your door one of these days. I do see a lot of commercial realtors in the, in the course of a month. So maybe next time look for me and let’s have a conversation and talk about the possibilities. Any closing words, John, on that?
Speaker 3 (19:14):
No, sounds good. I mean, like I said, looking for some opportunities, so, you know, if this show resonates or some of the things that we’ve talked about resonates with you, reach out and we’ll start a conversation.
Speaker 2 (19:23):
Sounds good. All right. Well that’s it for this episode. Come on back. See us next time. Thanks.
Speaker 3 (19:32):
See ya
Speaker 2 (19:33):
Later.