Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.
Issue link: http://cire.epubxp.com/i/536709
35 July | August | 2015 CCIM.com An r e Challenge Looking at the big picture, hiring millenni- als is a not a choice, it's a necessity. The aging of the commercial real estate indus- try is well documented. The average age of a CCIM member is 54, according to the 2014 CIRE Reader Survey. The median age of a commercial Realtor is 60, accord- ing to the 2015 National Association of Realtors Commercial Member Profi le. Given the effect of the Great Reces- sion and earlier market downturns on commercial real estate hiring, the reliance on an older workforce may be even greater in commercial real estate than in other industries. "The net result is an industry top heavy in highly valuable but graying executives and signifi cantly deprived of mid- and entry- level talent," writes Jay Olshonsky, SIOR, FRICS, president of NAI Global, in SIOR Professional Report. He estimates that, in some compa- nies, "90 percent of the business fl ows from just 10 percent of the workforce," presenting a severe economic risk. In other words, if your top producer retires, gets poached, or drops dead, your com- pany could be in trouble. In addition, the lack of younger work- ers puts companies at a disadvantage strategically. Unlike earlier generations of new hires, millennials also bring to the table a critical market disrupter: confi - dence with technology, a key ingredient in today's marketplace. The entry of a new generation into commercial real estate provides a prime opportunity for CCIMs to introduce younger colleagues to the CCIM des- ignation program. What worked for an earlier generation of commercial real estate professionals can provide the proper training for today's up-and-coming professionals. It's old school meets new school: the CCIM education is a common bond that unites all generations through the language of deal making. Pearson contacted the client about a potential opportunity that he thought f t well within his investment parameters. Af er the client asked for a f nancing refer- ral, Pearson referred his client to McLarty, then a commercial banker with J.P. Morgan Chase. Pearson and McLarty worked dili- gently through tenant, property, and under- writing issues with the client and closed the transaction within the allotted time, much to the client's satisfaction. "I think the most productive thing we did to satisfy the client was to constantly keep him updated on where we were in the deal cycle," McLarty says. "Nothing was too small or too bad to report. He said he had never worked with a broker or banker that made the ef ort we did to keep him in front of every potential issue and to feel like his transaction was genuinely important to the both of us." Riley Harrison, a 25-year-old Realtor who specializes in multifamily and investment properties for Re/Max Premier Properties in Reno, Nev., also places more importance on the sof skills of networking and build- ing connections in commercial real estate. "Practical aspects like f nancially analyz- ing, negotiating, and marketing invest- ments can be done by just about any agent in the f eld," he says. "But establishing and maintaining solid business relationships with other agents and clients cannot. I'm surprised at how many agents I've witnessed shoot themselves in the foot by souring a perfectly good relationship with another agent or client by acting for their own best interest." A New Mindset While Harrison understands that his youth puts him at a disadvantage in an industry built on experience, "It's a hurdle that's easily overcome," he says. "Once I demon- strate that I have the knowledge to ef ec- tively analyze a property's f nancials and advise based on the current market condi- tions, clients begin to listen." LaFreniere sees his comfort with technol- ogy as his biggest advantage as a millennial professional. "I grew up with tech. Nothing about the Internet, programming, or other upcoming tech really scares me," he says. "I am very data driven. I try to avoid using gut feelings as much as possible and try to operate of the data." "Discounting this generation before interacting with them is a disservice," says Bill Gladstone, CCIM, SIOR, a com- mercial Realtor with NAI CIR. He speaks from direct experience. He has four millen- nial employees working for him in various capacities. T e biggest change to accom- modate his younger colleagues? "Flexible schedules," he says. "Of my four employees, not one has the same work schedule." But with today's technology, it's not a big deal. Gladstone's of ce is set up so employ- ees can work at home if necessary. "If you think about it, it makes sense," he says. "T is took some getting used to on my part, but there has been no deterioration in our ef ciency or speed of response to clients." Gladstone says his younger employees also set boundaries between work and other time. "While they like money, it doesn't nec- essarily mean they would want to cut into their family time to make more of it. T at was dif erent for me," he says. In the next f ve to 10 years, "we'll see mil- lennials pushing themselves to think more creatively so they can keep their work/life balance in check," Gladstone says. "We will also see more f exibility in work environ- ments. Ef ciency can still happen outside the 9 to 5 'chained to your desk' schedule." And stereotyping a whole generation is not in anyone's best interest, he adds. Although the generations may def ne success dif er- ently, "T ere are commonalities: hard work, dedication, focus, and initiative," he says. "So don't throw the baby out with the bathwater." Sara Drummond is executive editor of Com- mercial Investment Real Estate.