Dan Neyer, president of Neyer Properties, Inc., grew up in Cincinnati in a family of eight children raised in a traditional German-Catholic family. His father used to preach the Golden Rule and quote the Serenity Prayer at the dinner table, and Dan and his brothers and sisters learned to share at early ages and work together for common goals. Because of their big family and the constant exchange of ideas, they challenged each other mentally and built the ability to think quickly and tolerate the barrage of criticism likely to come their way.
It was this exposure to constant challenge and negotiation, as well as Dan’s father’s penchant for exactness and his mother’s artistic talent that Dan credits with making him a visionary with an eye for detail. “My father tended to question the one thing you forgot out of 150 items you included,” he said.
A graduate of Moeller High School and Miami University (’81, Finance and Accounting), Dan understood early the importance of finding meaningful work and giving back to the community.
He also learned early that his biggest obstacle to success was himself. “I knew what my strengths were, and figured I couldn’t do it all,” he said. “I had to trust in the necessary support of people you surround yourself with, including good employees and managers.”
Many of the projects Neyer Properties takes on are properties other commercial development firms are afraid of because of building or site problems. Dan sees those problems as opportunities for success, and takes the time necessary to resolve them.
For the $100 million Keystone Parke project, for example, the tri-state’s first green-built and Leadership in Energy and Environmental Design (LEED) certified Gold office campus, Dan knew he had to acquire 44 properties in order to make the project viable. “I knew eminent domain was out of the question, and I knew some people weren’t as willing to sell,” he said. “I knew it would take time, finesse, confidence and faith to make it happen.”
As well as patience. It took eight years to acquire all the parcels, complete work with a consortium of city and community organizations about the development plan, and begin construction. Keystone Parke I, the first of three buildings on the 7.5 acre site at I-75 and Dana Avenue, opened this June.
“In our society, most people dwell on the problems,” he said. “I like to think about the solutions. If everyone thought the way I do, I’d have an awful lot of competition.”
Dan is aware of what his competitors are doing, but continues to go down his path in his own way. That path has led to his firm’s success and the purchase and development of over 3,000 acres valued at $1 billion over his career in construction, investment and building.
Neyer Properties is now a leading real estate investment, land development and commercial development company in the greater Cincinnati- northern Kentucky region.
Despite the challenging economic climate that lies ahead, Neyer Properties plans to increase its business in 2009 by taking advantage of acquisition and development opportunities on the horizon.
SoapBlog 3: Commercial Development in 2009
Posted By: Dan Neyer, 12/18/2008
SoapBlog 3
Dan Neyer
Commercial Building's Economic Outlook for 2009: More Difficult Before it Gets Better, Neyer Predicts
There are a lot of challenges coming up in 2009, the biggest of which is the credit squeeze. The ability to obtain loans is very difficult in today's environment, as many banks are afraid to make mistakes.
There are also many development, or short-term loans coming due in 2009 and 2010 due to increasing vacancies and downward pressure on rental rates, which will require a substantial amount of additional borrower equity at a time borrowers can least afford to provide it. We are very fortunate at our company that we continue to obtain loans due to the strength of our balance sheet.
Construction for private (non-public or non-profit) companies will be virtually non-existent in 2009 due to the lack of credit and the fact that construction costs have not been reduced enough yet to justify new development.
Cincinnati will not suffer as badly as other cities because we're not so dependent on the financial services industry. We have a diversified economy and the strength of P&G, Kroger, General Electric, Western Southern and other companies helping us weather the storm compared to cities such as Dayton and Detroit, which have economies more closely tied to the automotive industry.
I think the recession will last as long as the overall mood of our country is negative and lenders restrict the amount of available capital. This time around, commercial real estate overbuilding in our town is limited compared to other recessions we have had in the past. Compared to other cities, we will not fall as far as others will.
If you look at the past, we've gone into a commercial recession just about every eight to 10 years. These are generally caused by greed by either borrowers or lenders ignoring the basic principals of good, sound real estate investment and getting ahead of their skis.
Cash is King even more today than is has ever been. If you have the cash, you will be able to seize opportunities that come your way.
High growth areas will continue to be infill locations south of I-275 along the I-71 corridor, and the I-75 West Chester and Liberty Township corridor.
During times of stress and uncertainty, companies which have invested and spent wisely will be the winners. I personally believe 2009 and 2010 will be looked upon years from now as one of the greatest times for opportunity and think that businesses need to adjust their thinking and look to the future, not dwell on what occurred in 2008. Those who keep a positive frame of mind will be better for it.
SoapBlog 2: Why go green?
Posted By: Dan Neyer, 12/17/2008
Dan Neyer
SoapBlog 2: Why Neyer Properties Has Gone Green
Three years ago, I didn't know much about green building, but the concept intrigued me.
My staff is committed, progressive and curious, and we began to investigate green building because we felt it was the right thing to do and would be an effective marketing tool. But was green building a sound business investment, or just a feel-good practice?
We had a lot of questions, and the only way to find the answers was to do the research and do the math. What was the return on investment for installing high-efficiency HVAC or energy-efficient windows? Could xeriscaping be attractive and still offer significant water savings? Did offices with lots of natural light and green products in flooring, carpet and wall coverings really improve the health and attitudes of workers, or were they just cosmetically cool?
What we found was that green building is not only the right thing to do for the environment and our physical and emotional health, it makes economic sense, too.
Our green office buildings use up to 30 percent less energy and provide a 50 percent savings in water use over typical office buildings. Employees are healthier in a green environment—there are fewer allergens in natural carpets, flooring, and wall coverings-- which translates into fewer sick days. Fewer sick days means more employee productivity. Every business wants that. And happiness from being in a green, clean environment aids in employee job satisfaction and retention.
Now let's picture the following scenario and crunch some realistic numbers: A company named Green Living, Inc. rents 10,000 square feet of office space at $15.00 per square foot for a total of $150,000 a year. Average salary per employee is $60,000. Health insurance, employment taxes, and benefits add another 40 percent; and overhead adds another 30 percent for a total cost of $100,000 per employee per year.
Each employee is also at least 2 percent more productive in the green office space. This is because air in the space is cleaner and fresher, more natural light comes in, and employees are happy to work there. This small gain of 2 percent productivity (one less sick day per person per year) translates into a large number—$8.00 per square foot. For these same reasons, there is also a half-percent gain from employee retention over time, or reduced turnover, which equals $2.00 per square foot.
Energy savings knock off 25 percent of the utility bill, and green landscaping combined with low-flow restroom fixtures eliminates 50 percent of water use and treatment costs. These operating cost savings equal about $1.00 per square foot.
Added all together, this 10,000 square foot green office saves an employer $11 per square foot over renting a traditionally-built, non-green building. Net result: green building makes this effective office rent cost only $4.00 per square foot.
Now compare these numbers to the added cost of $11.00 to the $15.00 per square foot rent in a typically-built, non-green building. With two percent more sick days, a productivity drop, employee turnover, and increased water and utility costs, the cost to rent a non-green building is now actually $26.00 per square foot.
In essence, because employees are the biggest expense for a company, creating a healthier, more efficient work environment is a win-win for both employee and employer. Going green means increased productivity and quality of life for each employee, as well as an increase in revenue and cost savings for the company.
Green building significantly reduces a company's net effective rents. It transitions rent from an obligation to an investment that pays dividends in real dollars and human capital.
Dan Neyer is president of Neyer Properties, a leading commercial real estate, land development, and commercial development company in the greater Cincinnati-northern Kentucky region. It is headquartered at Keystone Parke in Evanston, the first LEED-certified Gold office campus in Ohio, Kentucky and Indiana.
SoapBlog 1: The secrets to a successful business leader
Posted By: Dan Neyer, 12/16/2008
Dan Neyer
SoapBlog 1
Lately people have been asking me what it takes to lead a successful commercial real estate development company, one that has been successful even in a down economy. While I can't speak for every leader in every situation, I can talk about what has worked for Neyer Properties.
First of all, you have to lead with passion and strong convictions. You must be able to inspire and motivate people and make sure you have the right culture that promotes honesty and integrity above all else. Profits and sales goals should never be the only goal; they are a result. If you provide good value, profits and growth will follow. If you do the right things in the right way, you will have opportunities to grow and be profitable.
Everything ties into that. Our company committed itself to green building, for example, because it was the right thing to do and it benefits everyone in the long term. We started with that concept, and did the research, discovering along the way how green building and its subliminal effects on people adds to their contentment level at work as well as their good health, which results in improved employee retention. Happy employees come to work more often and stay longer in a job, which increases productivity and reduces employee training costs.
These are benefits in addition to helping conserve natural resources, energy, and water.
Secondly, embrace change, or, in my case, pursue change. It genuinely works. See things that others don't see, and don't wait to act. If you wait too long to act, you may end up with tire tracks on your forehead. View obstacles as opportunities and figure out a way to go over, under, through them. Turn the negative to a positive.
Third, never give up. If you are knocked down, get up. Failure sometimes is the best way to enlighten you on the road to success.
Fourth is motivation. There are more reasons not to do things than reasons to do them sometimes. Provide something that others will want and desire, even if they don't fully understand what it is. It's all about value; how you create it and how you provide it.
Finally, stick to your knitting. Keep focused on what you do best, but be flexible enough to try new things. You don't want to be too focused, like the auto industry has been. They built cars that they wanted to build, and not what people wanted to drive.
Today's environment is one of the best in which to start a business. Technology is at your fingertips. Find a need and fill it, but be certain it's the right thing for you and your potential customer base.
Dan Neyer is the recipient of the 2008 Ernst and Young Entrepreneur of the Year Award; 2008 Better Business Bureau (BBB) Torch Award for Marketplace Ethics; and the 2008 National Assn. for Industrial and Office Properties (NAIOP) Developer of the Year Award.