Commercial Real Estate Today: Dr Friedrich Helml Of Aliant Austria On 5 Things You Need to Create a Highly Successful Career in the Commercial Real Estate Industry Today

An interview with Aron Weiner

Persistence and Resilience: Success in commercial real estate often requires overcoming setbacks and challenges. Persistence and resilience are essential qualities for enduring in the industry.

The commercial real estate industry is a dynamic and challenging landscape that offers enormous potential for success. However, it requires a unique blend of skills, knowledge, and aptitude to truly excel. How does one establish themselves in such a competitive field? What does it take to consistently rise to the top in commercial real estate? How does one rise above the headwinds that are challenging the commercial real estate industry today? In this interview series, we are talking to commercial real estate professionals, brokers, investors, leaders of Real Estate Firms and Real Estate Investment Trusts (REITs), as well as anyone who’s found significant success in this industry. As part of this series, we had the pleasure of interviewing Dr. Friedrich Helml, LL.M. (Duke), MBA (CLU), of ALIANT®.

Friedrich Helml studied in Innsbruck, where he completed his PhD alongside the mandatory court practice for a later career as a lawyer.

After a one-year study visit at Duke University in North Carolina, where Friedrich Helml completed his LL.M in international law, he worked as an associate for various international law firms in Vienna and was already involved in the contractual handling of large real estate transactions with highly complex challenges.

In 2014, Friedrich Helml opened a boutique law firm specializing in corporate, real estate and litigation and has already been able to initiate, negotiate, support and/or complete numerous well-known real estate transactions for national and international clients with his steadily growing team, especially in real estate transactions. Today Friedrich Helml is senior partner of Alliant Helml Rechtsanwälte GmbH with offices in Vienna and Linz.

Thank you so much for joining us in this interview series! Before we dive in, our readers would like to learn a bit about your origin story. Can you share with us a bit about your childhood and how you grew up?

I grew up as the 2nd of 5 children and was involved in competitive gymnastics from an early age. In my youth, I practiced numerous outdoor and extreme sports, including scuba diving, paragliding and rock climbing.

Can you share with us the ‘backstory’ of how you got into the real estate business?

Already at the beginning of my career as a lawyer, I came into contact with real estate transactions in which I was fascinated by both the legal work and the material topic itself. Subsequently, I was very fortunate to get to know a number of real estate developers and to be able to work with them to become increasingly involved in the real estate business.

Can you tell us about your company and what makes it stand out?

We are a boutique law firm that combines the best of both worlds: We are large enough to cover all areas of expertise essential to our clients and to provide the highest level of service on the basis of a genuine and lived best-practice principle. However, we are small enough to remain agile and dynamic, to be able to respond to the needs of our clients and the market in general at short notice and to support our clients at partner level with direct access at all times (24/7). However, our particular distinguishing feature is certainly our “can’t do, doesn’t exist” mentality; we (almost) always find a way and we are always true to our word. The quality of our handshake is what counts for us.

Can you tell our readers about the most exciting new projects you are working on now?

We are currently working on a hotel development project as well as on transactions involving a Viennese office and commercial building with more than 30,000 m2 of usable space and have just been commissioned to advise on the planned acquisition of a Viennese luxury hotel with around 25,000 m2.

Ok, let’s now move to the main part of our interview about commercial real estate. What are the 3 things that most excite you about the industry now? Why?

1. Variety of cases: The real estate business offers a wide range of legal matters, from land sales and purchases to leases, construction projects and environmental regulations.
2. Complex contract work: Real estate transactions often require extensive contract work that must be done precisely and carefully. We negotiate, review and/or draft complex contracts, briefs, writs, etc, not also regarding the real estate itself, but often also with regard to administrative issues, financing, insolvency deferrals, pledge realizations, safeguards, etc.
3. The real estate business is very profitable. Whether as an agent, developer, builder or contract drafter, the larger the transaction volume, the more interesting it becomes, not only in terms of content but also financially.

What are the 3 things that concern you about it? Why? What should be done to address and alleviate those concerns?

1. Financing and debt management:

• Concern: Securing financing for real estate investments can be challenging, and debt management is critical to profitability.
• Solution: Carefully evaluate financing options, maintain good credit, and have a sound financial plan. Explore alternative funding sources and maintain strong relationships with financial institutions.

2. Location Risks:

• Concern: Property values can be highly dependent on location, and certain areas may be more susceptible to economic downturns or natural disasters.
• Solution: Conduct thorough due diligence on property locations, diversify your holdings across different areas, and invest in insurance for potential risks.

3. Environmental and Sustainability Concerns:

• Concern: Growing awareness of environmental and sustainability issues can impact real estate values and compliance requirements.
• Solution: Consider green and sustainable building practices, stay abreast of environmental regulations, and adapt your properties to meet changing sustainability standards.

If you had the power to put in place 3 changes to improve or reform the industry, what would you suggest? Please share stories or examples, if possible.

1. Standardized property data: Implementation of a global standardized database of property information and history. This would increase transparency and streamline due diligence for buyers, sellers and investors.

Example: Austria’s “Grundbuch”, or even better, Sweden’s publicly available “Lantmäteriet”, maintain a publicly accessible database with detailed property information, making property data easily accessible and transparent.

2. Digital transactions: Promote the use of digital platforms for real estate transactions and document management to reduce paperwork and streamline processes, possibly even incorporating/using blockchain or token technology.

3. Public-private partnerships: Encourage partnerships between governments and private entities to develop infrastructure and affordable housing projects.

How has technology changed the commercial real estate industry, and how do you foresee it shaping the future of the sector?”

Technology has already significantly changed the commercial real estate industry in many ways and continues to shape its future, for instance:

1. Data analytics and market insights:

• Past: Traditional data collection and analysis was time-consuming, making it difficult to make informed decisions.
• Present: Advanced data analytics tools and platforms provide real-time market insights, helping investors and stakeholders make data-driven decisions.
• Future: Predictive analytics and machine learning will become even more integrated, enabling better predictions of market trends and property performance.

2. Property listing and search:

• Past: Property listings relied heavily on print media and were limited in scope.
• Present: Online platforms and listing websites provide a vast and easily accessible database of commercial properties for buyers, tenants and investors.
• Future: Virtual reality (VR) and augmented reality (AR) technologies will enable immersive property tours and simulations, revolutionizing the property viewing experience.

3. Digital transactions:

• Past: Real estate transactions involved extensive paperwork and manual processes.
• Present: Online transaction management tools and e-signature platforms have begun to streamline the process of buying, selling and leasing commercial real estate.
• Future: Blockchain technology could lead to fully digital and highly secure real estate transactions, reducing fraud and paperwork.

4. Smart buildings:

• Past: Buildings were largely static in terms of management and efficiency.
• Present: Smart building technologies enable real-time monitoring and control of energy use, security, and occupancy, improving efficiency and sustainability.
• Future: The integration of artificial intelligence (AI) will further optimize building operations, leading to predictive maintenance and personalized tenant experiences.

5. Marketplace Transparency:

• Past: Lack of transparency in property data and valuations was common.
• Present: Open data initiatives and standardized property information databases have increased transparency.
• Future: Blockchain-based property records will provide a tamper-proof and universally accessible ledger, ensuring maximum transparency.

6. Remote work and flexibility:

• Past: Demand for office space was primarily based on physical location.
• Present: Remote work trends and flexible office solutions have reshaped commercial real estate demand, creating a need for adaptable spaces.
• Future: Commercial space will need to be designed for flexibility, offering hybrid work environments that accommodate evolving work preferences.

7. Sustainability and ESG (environmental, social, and governance):

• Past: Sustainability considerations were not as prominent in real estate development.
• Present: Green building practices and ESG criteria are increasingly important to investors and tenants.
• Future: Sustainability certifications and stringent ESG standards will drive real estate development and investment decisions.

8. Risk assessment and security:

• Past: Risk assessment relied heavily on manual processes.
• Present: AI-powered risk assessment tools can analyze massive data sets for property and market risks.
• Future: Enhanced cybersecurity measures will be critical as the industry becomes more digitally connected.

Looking ahead, technology will continue to play a pivotal role in the commercial real estate sector, enabling greater efficiency, sustainability and transparency. Innovations such as AI, IoT, blockchain, and 5G, respectively the following technologies, will continue to transform the industry, creating new opportunities and challenges for stakeholders. Adapting to and embracing these technological advancements will be key to success in the evolving commercial real estate landscape.

I am hearing the phrase “Stay alive until 2025” a lot. What is your plan to survive in the current market?

Proceed, adapt, never give up, always strive for more.

For a young person who would like to eventually make a career in commercial real estate, which skills and subjects do they need to learn?

1. Gain a solid understanding of the fundamentals of real estate, including property types (e.g., office, retail, industrial), property management, leasing, and investment analysis.
2. Develop strong financial analysis skills to evaluate potential real estate investments, including the ability to create financial models, perform cash flow analysis, and assess risk and return.
3. Build a professional network within the industry by attending industry events, joining real estate associations, and connecting with experienced professionals. Networking can open doors to job opportunities and mentorship.
4. But most importantly, cultivate your character, become resilient, show that you are reliable and always stand tall and straight and keep your word even if it’s uncomfortable or you feel like no one will notice. take the harder path.

Do you have three things you would advise a new real estate professional to avoid?

Only one: avoid overextending yourself financially, especially early in your career. It’s important to manage expenses, maintain a financial safety net, and not take on excessive debt that could lead to financial instability, particularly in light of an economic downturn that could come at any given time.

When evaluating deals or opportunities in real estate, what are the most important factors you look for and why? Can you provide some examples?

The most important factor is the amount of the purchase and development price in relation to the achievable capital gains.

How is an exit or sale possible — only through the sale of properties or individual parts (e.g. residential property) or by way of a share deal?

What development options are available according to the current state of development or approval status (laws and official regulations and permits), what additional future developments are conceivable, what expenses would these entail and how can such development options be implemented and/or guaranteed?

Example: I helped a client acquire an old industrial building that had been marketed unsuccessfully for years by numerous agents. However, it was not actually the building that had been offered, but the owner of the business that had previously been located there wanted to sell his entire company. The building and the real estate could not be bought seperately and the owner could not find someone who wanted to acquire his business and release him from any and all related later liabilities. Our client ultimately acquired the company together with the property and the industrial building, closed the company and converted the property into a multi-million residential-, commercial- and office complex within a very short space of time.

Can you share a story with us about the hardest deal you made, that ended successfully for you?

The purchase of a castle, with extensive and spacious green areas, as well as an adjoining farm with stables, outbuildings and accommodation for agricultural workers. This was also tied to several 100,000 m² of potential building development land. The sellers wanted to retain the castle in its entirety in its current form, although a hotel was to be developed from it and the castle was therefore to be converted accordingly. In addition, the sellers wanted a market-based compensation for the potential building development land as building land, while the buyers we represented did not want to pay any significant additional amount for the land, which is currently not valuable. In the end, we were able to find complicated settlement and compensation modalities that satisfied both sides of the contract. Our biggest challenge here was to guide the sellers to a solution that was supposedly more advantageous for them, while of course primarily or exclusively safeguarding the interests of the buyers we represented.

Based on your personal experience and success, can you please share “Five Things You Need To Create A Highly Successful Career In The Commercial Real Estate Industry”?

1. Education and Expertise: Building a strong educational foundation and expertise in the field is crucial. A deep understanding of real estate principles, finance, and market dynamics sets a solid base for success.
2. Networking and Relationships: Building a robust professional network is essential for accessing opportunities, referrals, and mentorship in the industry.
3. Adaptability and Innovation: The real estate industry constantly evolves. Being adaptable to new technologies, market trends, and innovative approaches is critical.
4. Ethical Conduct and Reputation: Maintaining ethical conduct and a strong reputation is fundamental for long-term success in real estate. Trust and integrity are invaluable assets.
5. Persistence and Resilience: Success in commercial real estate often requires overcoming setbacks and challenges. Persistence and resilience are essential qualities for enduring in the industry.

What advice would you give to another real estate professional about improving the work culture, building team morale, and helping each employee thrive?

1. Clear Communication and Transparency, by encouraging open and honest communication among team members and leadership and keeping everyone informed about company goals, strategies, and expectations. Transparency fosters trust and ensures that employees feel valued and included in decision-making processes.
2. Recognition and Appreciation of the efforts and achievements of team members.
3. Training and Professional Development of team members by providing access to training, workshops, and mentorship programs and encouraging employees to expand their skills and knowledge.
4. Promotion of work-life balance by respecting boundaries and offering flexibility when possible.
5. Collaborative Environment in which team members can share ideas, collaborate on projects, and learn from one another.
6. Feedback and Growth Opportunities.
7. Lead by Example and set a positive example by embodying the values and behaviors you want to see in your team.

You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)

Energy-Efficient Home Retrofit Program:

This initiative focuses on enhancing the energy performance of existing residential buildings to achieve several critical goals: reducing energy consumption, lowering utility expenses for homeowners, mitigating carbon emissions, and improving the overall living conditions. By implementing a range of energy-saving measures, this program seeks to transform older, less efficient homes into sustainable, cost-effective, and eco-friendly living spaces.

How can our readers further follow your work online?

On my website : https://aliantlaw.com/places/austria/

On my LinkedIn : https://www.linkedin.com/in/friedrich-helml-26818a29

This was very inspiring. Thank you so much for joining us!