In commercial real estate, setbacks, mistakes, and things not going according to plan are inevitable. Whether it’s a project that underperforms, a market shift that wasn’t anticipated, or a decision that didn’t yield the expected return, failure can feel like a roadblock. But instead of letting failure define us, we can choose to turn it into one of our most powerful tools for future success. This is something I’ve witnessed firsthand in the industry, and I believe that when approached correctly, failure can be a transformative opportunity.
In CRE, failure doesn’t have to be a dead-end; it can be a stepping stone to even greater things. The key is learning from the experience, adjusting your approach, and using that knowledge to take smarter, more calculated risks moving forward.
Here’s why embracing failure is vital to success:
1) Failure Cultivates Resilience
Commercial real estate is a high-stakes industry, full of uncertainty. Decisions are often based on variables we cannot control—market trends, interest rates, global factors. Despite the best strategies, things won’t always go as planned. But resilience is what allows us to weather these storms. The real power of resilience lies in the ability to bounce back, adjust your strategy, and continue moving forward with renewed clarity. Resilience, forged in the fire of failure, is what helps us transform setbacks into future opportunities.
When we go through failures, we develop the ability to roll with the punches, stay focused on long-term goals, and not get bogged down by immediate challenges. That’s the mindset shift that makes all the difference in CRE—failure doesn’t stop us; it strengthens us for the journey ahead.
2) Learning from Mistakes Leads to Smarter Decisions
It’s easy to fall into the trap of viewing mistakes and failures as personal shortcomings or missed opportunities. But when we approach failure from a growth perspective, we unlock a treasure trove of insights. Each failure is a lesson, a map guiding us to make better decisions the next time. In CRE, this means learning from past investments that didn’t pan out or transactions that didn’t meet projected returns.
The best CRE professionals don’t just make smarter decisions—they make better decisions faster because they’ve learned from previous mistakes. They evaluate what went wrong, pinpoint key takeaways, and apply those lessons to future deals. So rather than fearing failure, we need to embrace it as an opportunity to refine our decision-making process and accelerate our learning curve. By doing so, we reduce the chances of making the same mistake twice.
3) Failure Encourages Innovation and Creativity
Sometimes, failure is the spark that ignites creativity. In CRE, when one approach doesn’t work, it forces us to innovate. Whether it’s adjusting the structure of a deal, rethinking an investment strategy, or finding new ways to reduce costs and increase efficiency, adversity encourages us to think outside the box.
I’ve seen companies push through failure and come up with groundbreaking solutions that may not have been considered if they hadn’t hit a wall. Necessity is the mother of invention, after all. When something doesn’t go as planned, we’re pushed to find new ways to solve problems, opening doors to innovative solutions that might otherwise have remained closed.
4) Building a Culture That Embraces Failure
As leaders in the CRE industry, we have a responsibility to create a culture where failure is seen as an opportunity for growth, not something to be feared. When we build an environment that encourages risk-taking and learning from setbacks, we cultivate stronger, more resilient teams. A team that’s not afraid to fail is a team that’s willing to innovate, collaborate, and push boundaries.
When failure is seen as a natural part of the process, employees feel more empowered to experiment and take calculated risks. The result? A dynamic, forward-thinking company that can quickly adapt to market changes and seize new opportunities. In CRE, where the landscape is always shifting, this adaptability is essential for long-term success.
5) The Power of Failing Forward
In CRE, it’s easy to get discouraged when things don’t go according to plan. But here’s the truth: you’re not really failing unless you give up. Embracing failure as a part of your journey means failing forward—learning from mistakes and using them to propel yourself toward your goals. By doing this, you unlock a mindset of continual improvement and progress, and every setback becomes part of your eventual success.
This mindset is what drives the best in CRE—those who are constantly evaluating and adapting, pushing through temporary setbacks, and finding better, smarter ways to do business. Failure is a teacher, and if we learn its lessons, we can go further, faster.
6) Turning Adversity Into Advantage
The road to success in CRE is rarely a straight line. Instead, it’s filled with bumps, detours, and challenges. The difference between those who succeed and those who struggle is often their ability to turn adversity into advantage. When you experience a setback, assess it with a clear mind, understand the lessons it offers, and use that knowledge to adjust your strategy and move forward stronger. Each failure brings with it a chance to grow, adapt, and refine your approach.
What challenges have you faced in CRE, and how have you turned them into opportunities?
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