Strategic Advisory in Construction: Navigating Today's Market Challenges

Why is strategic consultation important in today’s construction projects?

Strategic consultation is crucial because the traditional ‘build it and they will pay’ model no longer works in today’s economic climate, where construction costs have skyrocketed while rental rates remain stagnant, making project viability a significant challenge.

How has KasCon adapted to the changing construction market?

KasCon has evolved from traditional contractors into trusted consultants, offering strategic guidance and business advisory services to help clients navigate complex financial decisions and find alternative solutions when projects don’t initially pencil out.

What are some challenges property owners face in today’s construction market?

Property owners struggle with projects that don’t pencil out due to high construction costs and stagnant rental rates, often revisiting deals multiple times or shelving projects until market conditions improve or creative solutions are found.

Can you provide an example of how KasCon’s advisory approach benefited a client?

KasCon advised a medical practice against purchasing and renovating an expensive building for more space than needed, instead connecting them with a better opportunity to own a condo unit in a development at a fraction of the cost.

What sets KasCon apart in the current construction market?

KasCon stands out by serving as strategic construction consultants, market connectors, business advisors, experienced guides, and lease and purchase advisors, focusing on the overall success of the project beyond just the construction contract.

What does a relationship-driven market mean for construction projects?

A relationship-driven market means success depends on trust, experience, and the ability to provide comprehensive guidance beyond traditional construction, including understanding market dynamics, alternative approaches, and financial structuring options.

What role do construction professionals play in today’s market?

Construction professionals now act as strategic advisors, helping clients evaluate deal feasibility, navigate financial decisions, and identify construction-related pitfalls in lease and purchase agreements, beyond just executing construction projects.

How does the current economic climate affect construction project viability?

The current economic climate, marked by rising construction costs and stagnant rental rates, has created a crisis of project viability, forcing property owners to rethink their approach and seek strategic advisory services to make projects feasible.