The Global Mindset and CRE

The Global Mindset and CRE Home and Abroad

Globalization is not new. Countries and cultures have been connected for decades and the increased capabilities of technology have made those bonds more accessible and stronger. A global mindset for a commercial real estate professional is a way to unlock a new world of business, inspiration, and innovation.

Not everyone is in a position to partner internationally or work with properties in other countries, but having a global mindset goes beyond the properties someone manages. It is a strategy for success. For those working internationally, entering the global mindset is essential to survival and success in a world that grows smaller.

Unlocking the World

Having a global mindset can feel like a nebulous request, but it can be boiled down to awareness. John Oliver, chairman and managing principal with Oliver and Company, said that he looks at having a global mindset as looking outside your immediate universe.

“Step outside of your own awareness level and that means that you want to be open to learning and having an interest at looking at life through a different lens,” Oliver said. For those working internationally or with international clients, the ability to assimilate and perform within a new culture is paramount.

For Roy Abernathy, executive vice president of global workplace strategy and human experience with Newmark, perparations for meetings in a new country begin long before the flight. It is a daily practice.

“It’s about understanding what is going on socially, politically, medically, and learning how to apply consistently on that local level,” Abernathy said.

While some professionals like Abernathy rely on a global mindset for their international work, it is important to recognize the importance of global events no matter where a property is located. The global mindset is not just for those with properties in another country, but also for property professionals managing locally.

Founder of DRH Advisors Don Henry said that CRE professionals need to recognize that no one is immune to the actions and trends of other countries.

“Very few investments, including real estate, are immune to political, social, and economic developments occurring abroad,” Henry said.

Understanding the importance and definition of a global mindset is one step, but how can a CRE professional put this into practice?

Walking the Walk

Learning the events of the world is a daunting task and a daily one. Professionals that work in the international arena have a responsibility to be conversational in the state of the world, especially in the country in which they are visiting. Abernathy reads a global news update every morning before work, just to make sure he knows what’s happening and what topics he needs to be aware of. However, being an effective global professional is about more than just knowing the news. Abernathy said when he traveled for commercial real estate, it was all about the people.

“When I used to get to travel internationally, I would spend time to spend time with the client outside of the office,” Abernathy said. “I would learn about their role in the community, what key amenities they look for, and not stay in the hotel that was right next to the client’s location but one that was centrally located in the heart of the community.”

Learning about a different country’s hot and cold markets, real estate sectors and trophy properties is only one part of the deal. Social norms and traditions can make or break when it comes to having a successful meeting with a client. Communication with international partners, translators, and guides beforehand can prevent a lot of missteps. Henry said that preparation on cultural norms must be done before anyone steps into the meeting room. “Before we talk about real estate with our international investors, we need to first cover some ‘soft’ topics such as their home country customs, norms, and business practices; communication preferences; and expectations of us as an investment manager,” Henry said.

Success and respect are important because they set up the reputation of a commercial real estate professional in the global space. John Oliver worked his way from a suburban office park to crafting deals in countries all over the world. He said the critical nature of reputation cannot be stressed enough and that transparency should be a paramount objective.

“What I began to realize is reputation in our business is everything. When I reached the national level, the world actually got smaller because everyone knew everyone,” Oliver said.

Ultimately, working with international partners or clients is about respect and empathy. Abernathy said that CRE professionals must remember what they are trying to create for a client: a workspace, a community center, a retail experience, and do their best to learn enough to produce that product effectively.

“In a lot of cases, your job is to bring an empathetic approach to the challenge facing the client,” Abernathy said. “It’s more important than ever to look at every facet of a decision including the geographic, people and business aspects.”

Continued on Page 10

Close to Home

The United States is home to a diverse group of citizens and visitors. Across the country, each state and county and town is home to a whole host of people, each with a different perspective. This is precisely why the global mindset does not only apply to those who work and travel abroad. This mindset can help improve the professional life of many property managers. Henry said that cultivating a global mindset state-side starts with a little research.

“Introduce yourself to the international members and pick their brains to understand what’s happening globally and how this compares to what’s happening in local markets,” Henry said. “Make a habit of reading international publications such as The Economist and Financial Times.”

Having that awareness of global events can also help professionals perform better in their positions and produce different ideas for their owners and managers. Even though an individual property manager may not feel that international affairs are within their scope, many owners make that knowledge a priority, and being able to be a part of that conversation can make a great impression.

“If you want to grow professionally and be able to relate to your owners more and more, you need to have a mindset that is open to international,” Oliver said.

What is being done in another country in the commercial real estate world can serve both as inspiration and reference for choices that can be made in one’s own country. Oftentimes, a CRE professional going through a particular challenge or considering a certain innovation can find an example in another culture and use that to inform their decision-making.

Abernathy said that many people are surprised by the number of transferable concepts that can be found when having a global mindset.

“We are really good at what we do but doing things globally provides a lot of learning and opportunity, so really understanding things that can be applied from one place to another is a great benefit to international work,” Abernathy said.

Open Doors

Understanding and branching out into a new culture takes patience, effort, and understanding. However, the benefits of being able to bring in global influence are often worth the work. Oliver said that the moment he began to think outside his physical location, his professional life began a new path.

“When I first got into commercial real estate, I was in a suburban Atlanta office building and I was the leasing and property manager, so my world was small and my world revolved around that office park, and I was trying to learn everything that I could, but it was limited through the lens of that office park,” Oliver said.

Not only does international work bring in new business and new clients but it can open a professional up to a whole new world of understanding.

It turns the focus to client needs and wants in a way that will improve a professional’s property management or asset management skills internationally and locally. Beyond cultural improvement, international work can be a positive financial strategy as well.

“Working with international partners and clients promote diversification of three important financial measures: assets under management, investment returns, and revenue,” Henry said. “Additionally, a global approach provides access to a wider pool of investment opportunities and exposure to individual investments that can favorably reduce correlation within a portfolio.”

Whether managing a facility in the states or developing office space in Japan, the global mindset is another tool in the property professional’s toolbox. For those working internationally it is an essential practice, but for those working locally, exploring the global mindset can be an excellent way to remind one’s self about the core work of a property manager.

“People, place, and process are workplace strategy if you look at the core definition. The real estate component of that has tended to be the place, but realistically it is tied to the people,” Abernathy said.

From investing in an international news subscription to deep cultural studies, a global mindset can add value both to an individual and an organization. Consider what pieces for this practice are most effective for your specific role and don’t be afraid to step outside your comfort zone.

Quick Tips for International Video Meetings

Understand the cultural norms of the other country when it comes to technology use

Watch your angles to ensure you are not looking down at or up at the client or partner

Be aware of your lighting and background. Double-check that there is nothing offensive or symbolic to the other people on the call.

Check, double-check and then triple-check your time zones. Being late for a meeting isn’t acceptable online or in person.

Structural Engineering Rooftop Safety Equipment Façade and Roof Consulting Parking Structures

We are a customer service oriented firm developing practical and economical solutions for your engineering challenges.

1000 Holcomb Woods Parkway, Suite 210 | Roswell, GA 30076 | 678-280-2325 | brivers@pmass.com