I just returned from Santa Fe, New Mexico, where I was engaged to train a group of commercial real estate professionals in Albuquerque. Santa Fe was but a short hop away.
Frequent readers of this column will recall that last year I wrote a book entitled The SEQUENCE, which chronicles my journey through four decades of commercial real estate. What has emerged since is a training program by the same name, designed to help practitioners succeed in our business. But I digress.
Our time in Santa Fe was spent sightseeing, sampling restaurants, exploring the area’s rich history and soaking in the crisp, cool air of a New Mexico autumn.
We also ventured beyond the city to explore
We also ventured beyond the city to explore two historic sites, one of which was Bandelier National Monument, where Ancestral Pueblo people established communities centuries ago. As we wandered among the remains of ancient dwellings, climbed ladders into rooms carved into volcanic rock and marveled at the ingenuity of their construction, something occurred to me.
These ancient communities offer a fascinating study in commercial real estate, which, after all, is the focus of this column.
Consider what mattered to the people who settled these locations hundreds of years ago. They needed access to water, proximity to foodfficient space to accommodate their families and daily activities
Sound familiar?
Strip away the centuries, and many
Strip away the centuries, and many of the considerations that influenced where these communities were established are remarkably similar to those confronting today’s manufacturers, distributors, and other commercial occupants.
Location: For the Ancestral Pueblo people, access to water, fertile land and routes connecting neighboring communities was essential. Today, manufacturers and distributors evaluate proximity to customers, suppliers, employees and transportation corridors. The re
Infrastructure: At Bandelier, dwellings were constructed using available materials, with some rooms carved directly into volcanic rock. The surrounding environment influenced how buildings were designed and occupied. Today’s industrial occupants similarly require facilities capable of supporting their operations, whether that means sufficient electrical power, specialized ventilation, loading capabilities, or adequate water supply.
Expansion. As communities grew, additional rooms and structures
Expansion. As communities grew, additional rooms and structures were needed to accommodate changing requirements. Modern businesses confront similar challenges. Can we expand where we are, acquire an adjacent building or must we relocate entirely? The answers often determine whether an enterprise can continue operating efficiently.
Sustainability: Ancient communities depended upon the careful management of available ree not unlimited. Today’s businesses face their own reents and increasingly complex environmental regulations
Transition: Perhaps the most interesting parallel involves what happened when circumstances changed. Over time, the Ancestral Pueblo people migrated from settlements such as those at Bandelier, influenced by environmental conditions and other factors. Their descendants continue to live in Pueblo communities today.
Businesses also face transitions
Businesses also face transitions. Markets shift, ownership changes, partnerships dissolve, and facilities that once served an enterprise admirably no longer handle its needs.
I’ve spent more than four decades helping owners and occupants consider these decisions, and I’ve come to appreciate that real estate rarely exists in isolation from the people and enterprises it serves.
Standing among those ancient dwellings, I was reminded that although our buildings, technology, and transportation systems have evolved dramatically, the fundamental questions surrounding where we locate, how we operate, and when we move have remained remarkably consistent.
Apparently, commercial real estate decisions have been with us for a very long time.
Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104.
