As a CEO, I navigate the high-stakes world of California’s commercial real estate, where aspirations often meet formidable challenges. I have learned to navigate the complexities alongside many dedicated agents, developers, and community members. Here in the Bay Area, I’ve faced the same tough regulations and fierce competition, and through these experiences, I’ve gathered some insights on how to thrive in this demanding environment. Here are my strategies for turning California’s obstacles into profitable ventures and transforming difficulties into opportunities for success.

What is CEQA?

The California Environmental Quality Act (CEQA) is a cornerstone of the state’s regulatory framework, designed to protect the environment by requiring state and local agencies to identify and mitigate the environmental impacts of their actions. For developers like myself, CEQA is a double-edged sword —essential for sustainable development but often a source of significant delays and added complexity.

In my nearly 25 years in the commercial real estate sector, navigating CEQA has been akin to running a marathon blindfolded. While I appreciate its intent to safeguard our environment, the process can feel overwhelmingly intricate and protracted, especially for those who are new to CRE in California. Here are some insights and strategies that have helped me manage this “necessary evil” more effectively.

1. Start with thorough preparation

Before diving into any project, it’s crucial to understand the full scope of CEQA requirements. Engage with environmental consultants early to conduct preliminary assessments and identify potential red flags. This proactive approach can save time and resources in the long run.

2. Build strong relationships with regulatory agencies

Cultivating positive relationships with local and state regulatory bodies can be immensely beneficial. Regular communication and transparency can help streamline the approval process. Agencies appreciate developers who are cooperative and committed to adhering to environmental standards.

3. Engage the community

Community involvement is a critical aspect of the CEQA process. Host public meetings, provide transparent information about your project’s benefits, and be open to feedback. Gaining community support can mitigate opposition and facilitate smoother navigation through the regulatory landscape. You may also have the opportunity to build community allies who will help to push your projects through the finish line.

4. Leverage legal expertise

CEQA regulations are complex and ever-evolving. Having a legal team with expertise in environmental law can help you navigate potential legal challenges and ensure compliance. They can also assist in preparing robust environmental impact reports (EIRs) that withstand scrutiny.

5. Plan for delays

Delays are an inherent part of the CEQA process. Incorporate potential delays into your project timeline and budget. This realistic planning helps manage expectations and reduces the pressure of meeting unrealistic deadlines.

6. Embrace sustainable practices

Aligning your project with sustainable practices not only benefits the environment, but also positions your development favorably under CEQA. Innovations in green building, energy efficiency, and resource management can expedite approvals and enhance your project’s appeal.

The broader regulatory environment

CEQA is just one piece of the puzzle in California’s intricate regulatory environment. Zoning laws, building regulations, and high costs of living add additional layers of complexity. However, these challenges also present opportunities for those willing to navigate them with patience and strategy.

Entering California’s real estate market is not for the faint-hearted. It requires a unique mindset, boundless patience, and relentless effort. However, for those willing to navigate its complexities, the rewards can be substantial. As I often say, California is a long game — embrace the journey, adapt to the challenges, and transform them into opportunities for success.

By embracing preparation, community engagement, legal expertise, and sustainable practices, one can navigate this challenging landscape and emerge victorious. In the end, it’s about resilience, innovation, and a relentless pursuit of turning dreams into reality.

It seems everywhere you look there are headlines about shuttered storefronts, the death of retail and the economic “doom loop” of big cities. But when you look at smaller communities, the opposite seems to be true. While big cities across the country are still navigating the long recovery from the pandemic, smaller communities such as Fernley are continuing to grow.

In short: Small communities are seeing big ideas pay off – and Fernley is a prime example.

With a steady population growth and recorded population of nearly 23,000 in 2020, Fernley is located 35 miles from Reno and is literally and figuratively positioned to be an economic hub of Northern Nevada. For starters, its infrastructure: The city has a nearby cargo airport located in Reno, adjacent rail lines and Interstate 80 that can transport goods easily and swiftly. In addition, Fernley has strong market fundamentals: a growing population, a business­ friendly political climate and increasing employment opportunities.

This growth cycle in the past decade was sparked in large part by the addition of Tesla, Panasonic and Apple in nearby Reno. The difference, however, is that, unlike Reno, Fernley has ample affordable housing. People are more likely to buy a home there – and with more job opportunities there’s no reason to commute to the bigger city.

After more than two decades in the industry, I’ve developed a keen sense of small markets bound for big growth – and Fernley is definitely at an inflection point. Victory Logistics District and the Tesla Gigafactory at TRIC have spurred a large influx of people to the region, with Fernley’s population growing as a result. And retail development is still a huge opportunity that has yet to be fully tapped.

This starts with awareness.

The growth that is happening in northwestern Nevada is real and will only continue. As a developer, my biggest struggle is how to educate people on what Fernley is. While national brands have been here for years, a lot of upcoming brands have yet to discover it. Currently, if you want to spend the day shopping for apparel residents have to travel to Fallon or Reno. But I would argue that Fernley isn’t just primed for residential growth, but retail growth as well.

And why not? With more people living in Fernley, it makes sense to build out a retail sector, create more jobs, attract more visitors and drive the local economy. Some may call this a long shot, but I can attest that it’s already happening. My company, LRE & Companies, chose Fernley as an ideal spot for the Fernley Promenade, a 13-acre mixed-used development project consisting of industrial, retail and a hotel.

As headlines elevate the struggles of big cities, it’s easy to overlook the progress being made in smaller markets. But that would be a mistake. The time to look is now – as small markets continue to do big things.

Akki Patel launched LRE & Companies in 1999. He holds an accounting and finance degree from University of San Diego and is an active member of the Young Presidents Organization as well as several other business advisory boards. He writes about business trends and outlooks at AkkiPatel.net. He also serves on Dignity Moves Advisory Board.