The typical way to do it looks something like this:
Hire a creative agency
Come up with a new name and brand identity that speaks to your target market
Create a new website and new social media accounts
Start marketing the project with this new single-purpose brand and identity in the forefront (the developer's brand is usually far less prominent)
Of course, this is the typical way and things do vary. What I would like to discuss today is this last point: the interrelationship between new project-specific brands and developer brands. Because in most other industries, the brand of the company is paramount. It is everything. When BMW releases a new car model, it is BMW and then the something. It is not the something, with BMW hidden at the bottom of the page.
So why is real estate any different?
One possible explanation is the entrepreneurial and opportunistic nature of development. New projects are often the result of people and groups coming together to make a specific "deal" happen. And unless you're an established player with a long history, you may not have a consumer-facing brand with much equity in it. So you rely on a new single-purpose one instead.
The typical way to do it looks something like this:
Hire a creative agency
Come up with a new name and brand identity that speaks to your target market
Create a new website and new social media accounts
Start marketing the project with this new single-purpose brand and identity in the forefront (the developer's brand is usually far less prominent)
Of course, this is the typical way and things do vary. What I would like to discuss today is this last point: the interrelationship between new project-specific brands and developer brands. Because in most other industries, the brand of the company is paramount. It is everything. When BMW releases a new car model, it is BMW and then the something. It is not the something, with BMW hidden at the bottom of the page.
So why is real estate any different?
One possible explanation is the entrepreneurial and opportunistic nature of development. New projects are often the result of people and groups coming together to make a specific "deal" happen. And unless you're an established player with a long history, you may not have a consumer-facing brand with much equity in it. So you rely on a new single-purpose one instead.
But perhaps the main reason is that, as an industry, we have never really succeeded at making buildings a product (architects sometimes despise when you call buildings this). It is for this reason that every building can feel like a prototype and that prefabrication remains this dream that never seems to become a reality. A product implies something repeatable and producible at scale. And buildings are generally not that. Every market and site are unique.
All of this said, there are ways that developers are building meaningful brands for themselves.
The first way is to obviously focus on building your own brand alongside or in lieu of strong project brands. One example of this is Toronto-based Urban Capital. They build a specific kind of condominium building/product and, to the extent that it's possible, it doesn't change whether they're building in Saskatoon or in Halifax. David Wex, one of the partners, describes this as branded vs. opportunistic real estate development.
Another example is Toronto-based Fitzrovia (which I wrote about, here). They are one of if not the most active rental developers in the city. And if you go into one of their apartment buildings, you'll find the same No. 10 Dean coffee shop and bar in the lobby; the same rooftop pool (called LIDO); the same gym (called The Temple); and the list goes on. Their goal is to build a consistent and hospitality-like experience for apartments.
The second way to go about building a brand is to make it so attractive that other developers will pay you to use it. The best example that I can think of is London-based YOO. A partnership between John Hitchcox (a developer) and famed designer Philippe Starck, they have built a business out of creating branded residences for third-party developer clients. And this is in some ways the holy grail of development: you get paid without taking on the risk of building.
Of course, this same licensing model is also used with hotels. And hotel brands are globally the most common kind of branded residence. What this obviously tells us is that brands matter a great deal in real estate. They matter so much that developers will pay to use the right one, because it will likely command a premium and it will likely increase sales/leasing velocity.
It is for this reason that I've always felt it important to grow the parent brand alongside any project-level brands. And it's why we never bother creating new social accounts for our individual development projects. Brand building takes time. If you're going to invest time and money into one, why not take advantage of the compounding at the very top of the house.
But perhaps the main reason is that, as an industry, we have never really succeeded at making buildings a product (architects sometimes despise when you call buildings this). It is for this reason that every building can feel like a prototype and that prefabrication remains this dream that never seems to become a reality. A product implies something repeatable and producible at scale. And buildings are generally not that. Every market and site are unique.
All of this said, there are ways that developers are building meaningful brands for themselves.
The first way is to obviously focus on building your own brand alongside or in lieu of strong project brands. One example of this is Toronto-based Urban Capital. They build a specific kind of condominium building/product and, to the extent that it's possible, it doesn't change whether they're building in Saskatoon or in Halifax. David Wex, one of the partners, describes this as branded vs. opportunistic real estate development.
Another example is Toronto-based Fitzrovia (which I wrote about, here). They are one of if not the most active rental developers in the city. And if you go into one of their apartment buildings, you'll find the same No. 10 Dean coffee shop and bar in the lobby; the same rooftop pool (called LIDO); the same gym (called The Temple); and the list goes on. Their goal is to build a consistent and hospitality-like experience for apartments.
The second way to go about building a brand is to make it so attractive that other developers will pay you to use it. The best example that I can think of is London-based YOO. A partnership between John Hitchcox (a developer) and famed designer Philippe Starck, they have built a business out of creating branded residences for third-party developer clients. And this is in some ways the holy grail of development: you get paid without taking on the risk of building.
Of course, this same licensing model is also used with hotels. And hotel brands are globally the most common kind of branded residence. What this obviously tells us is that brands matter a great deal in real estate. They matter so much that developers will pay to use the right one, because it will likely command a premium and it will likely increase sales/leasing velocity.
It is for this reason that I've always felt it important to grow the parent brand alongside any project-level brands. And it's why we never bother creating new social accounts for our individual development projects. Brand building takes time. If you're going to invest time and money into one, why not take advantage of the compounding at the very top of the house.
Back in 2006 when I was fresh out of architecture school and looking for work, I knocked on the door of a design company based in London with my polished resume in hand. I was sleeping on a friend’s couch at the time and the company seemed like a perfect fit for me – so I went for it.
There’s no happy ending to this story though – because I didn’t get past the front door that day – but there’s never any harm in trying. As my friend told me the morning I went: fortune favors the bold.
They call themselves “a residential and hotel design company”, but their model is actually more unique than that. Founded in 1999 by John Hitchcox (a property developer) and Philippe Starck (a rockstar designer), the firm partners with local real estate developers around the world and creates value through design, branding, and marketing expertise – as well as through celebrity names like Philippe Starck and Jade Jagger.
What makes their model interesting is that, unlike the real estate developers they partner with, they’re not assuming the same level of risk (unless, of course, they co-invest). They get paid (well) for the design services and marketing expertise they provide, as well as the brand equity that they bring.
This is similar to what Donald Trump does with some (most?) of his developments now. Want the Trump name on your building? Pay $X. Want Philippe Starck at your condo sales launch? Pay $Y.
When I was in architecture school, I used to wonder why we didn’t talk about the importance of branding and marketing. I thought we should. Which is probably why I ended up in business school afterwards.
I think there’s a lot of potential in overlaps and hybrid business models, which is why I was excited to learn today that YOO has just launched a new architectural practice called YOO Architecture.
Back in 2006 when I was fresh out of architecture school and looking for work, I knocked on the door of a design company based in London with my polished resume in hand. I was sleeping on a friend’s couch at the time and the company seemed like a perfect fit for me – so I went for it.
There’s no happy ending to this story though – because I didn’t get past the front door that day – but there’s never any harm in trying. As my friend told me the morning I went: fortune favors the bold.
They call themselves “a residential and hotel design company”, but their model is actually more unique than that. Founded in 1999 by John Hitchcox (a property developer) and Philippe Starck (a rockstar designer), the firm partners with local real estate developers around the world and creates value through design, branding, and marketing expertise – as well as through celebrity names like Philippe Starck and Jade Jagger.
What makes their model interesting is that, unlike the real estate developers they partner with, they’re not assuming the same level of risk (unless, of course, they co-invest). They get paid (well) for the design services and marketing expertise they provide, as well as the brand equity that they bring.
This is similar to what Donald Trump does with some (most?) of his developments now. Want the Trump name on your building? Pay $X. Want Philippe Starck at your condo sales launch? Pay $Y.
When I was in architecture school, I used to wonder why we didn’t talk about the importance of branding and marketing. I thought we should. Which is probably why I ended up in business school afterwards.
I think there’s a lot of potential in overlaps and hybrid business models, which is why I was excited to learn today that YOO has just launched a new architectural practice called YOO Architecture.
