Hartman Simons Commercial Real Estate Blog

Four on Friday: Lori Kilberg on the CREW Network's Chicago Convention

Last week, Hartman Simons partner Lori Kilberg attended The CREW Network’s 2012 Convention and Marketplace in Chicago. The immediate past president of CREW’s Atlanta chapter and a current member of the organization’s national Board of Directors, Kilberg has played a crucial role in making CREW a vibrant and effective voice for women in commercial real estate.

We recently got a chance to ask Lori four questions about last week’s show. Many thanks to Lori for her time.  

The theme to the CREW convention in Chicago was “Choices.” What are the major choices confronting women in commercial real estate?

Kilberg: The convention was focused on giving attendees the tools to make the right, informed choices for themselves and their careers, the choices about how we do business and lead within our companies and communities. The featured speakers provided us with industry knowledge to help support our business choices, to help us learn how to thrive in uncertainty and to understand how even the smallest choices shape our lives. The choices in commercial real estate are not really different than in other industries.

Was there a particular part of the convention – be it a featured speaker, an educational session or a special event – that sticks out to you as your favorite moment from your time in Chicago?

Kilberg: So many great programs and speakers, but two sessions stand out (other than featured speaker and business-management expert Jim Collins, who was incredible).

Sheena Iyengar, author of “The Act of Choosing,” gave an amazing presentation about the hard data and psychology of choosing. She spoke for an hour with a very detailed Power Point presentation full of graphs and quotes. The most incredible thing – Sheena has been blind since the age of 13.

Another fabulous presentation was the roundtable discussion of female executives, moderated by Diane Paddison, chief strategy officer for Cassidy Turley. She interviewed Lauralee Martin of Jones Lang LaSalle, Deborah Harmon of Artemus Real Estate Partners and Lynn Cherney of Spencer Stuart. All of these women are at the top of their companies, and all are married with children!

You moderated a panel discussion on development projects that have resumed after stalling for one reason or another during the Great Recession. What was some of the general advice your panelists gave on how to restart such projects?

Kilberg: Do your research. Determine what is the highest and best use for the project, and visit other similar projects, speak to the developers and understand the challenges. Due diligence is crucial to the success of any project, but is especially important with projects that are intended to be rescued from prior failures.

Be persistent, and don’t give up. One project went through four letters of intent. Another was rescued out of bankruptcy in a battle with the former owner. The third project was dependent on a public-private partnership that involved nine government agencies and was delayed for three years.

Kilberg: What was the overall mood of the attendees: did they feel good about the overall state of women in commercial real estate?

I conducted informal surveys with women throughout the convention. To a person, they felt that their work had increased over the prior year, and that they and their firms were doing better. It is hard not to feel good about the overall state of women in commercial real estate when you gather 1,000 accomplished industry women in one place!

Be sure to read a recap of the panel discussion that Kilberg moderated at the CREW show in Chicago in this recent edition of Bisnow Atlanta.

Four on Friday: CREW Atlanta Participates in Women Build Project for Habitat for Humanity

It may have been the weekend, but Hartman Simons partner Lori Kilberg was hard at work last Saturday, Sept. 8. Along with nine of her fellow members of CREW Atlanta, Kilberg spent the day participating in a Habitat for Humanity Women Build project to help construct a home in west Atlanta, near the intersection of Interstates 20 and 285.

The group from CREW Atlanta helped to shingle the roof, insulate the walls and ceiling, place the siding, and caulk the windows. The women participated in the third day of the seven-day construction effort. The house is being built entirely by women.

Participants from CREW included Martha Byrd of SunTrust Bank, Kathryn Van Duyne of Piedmont Law Group, Mary Jim Evans of MJ Evans Associates, Rayan Hart of Republic Commercial Title, Jennifer Jenkins of Jones Lang LaSalle, Kathy Kisla of Ever Clear Enterprises, Paula Linck of Arborguard, Dorian Noble Selleck of Health Care REIT Inc. and Lauren Whitlock of Jones Lang LaSalle.

Below are four photos from CREW Atlanta’s workday. Congratulations to Lori and her fellow CREW members for their efforts. We at Hartman Simons are very proud of them!

Above: CREW Atlanta members at the home-building site.

Above: CREW Atlanta members are hard at work painting the exterior of the Habitat house.

Above: Hartman Simons' Lori Kilberg caulks windows.

Above: CREW Atlanta's efforts moved the Habitat home ever closer to completion.

 

Hartman Simons Partner Lori Kilberg Speaks to Memphis CREW Chapter

Women may have made undeniable progress in the workplace in general and in commercial real estate specifically, but they continue to be kept out of the C-suite, the top management level that contains positions such as CEO and CFO. That’s one of the points Hartman Simons partner Lori E. Kilberg made earlier this week when speaking to the Memphis, Tenn., chapter of the CREW Network.

Kilberg’s presentation was covered in the Memphis Daily News.

“They may be in middle and upper management, people that essentially run the show or do al of the legwork but [they] are not the ones that are maybe making all the global decisions,” Kilberg, who is on the CREW Network Board of Directors and is the immediate past president of the network’s Atlanta chapter, told the Memphis chapter.

Kilberg said companies who fail to promote women are not giving themselves their best shot at success. “Women are generally better educated than their males peers,” she said. “Several studies have found the correlation between significant numbers of women at the top of a company and the success of the company in the marketplace.”

Women need more “sponsors,” i.e., high-rankings executives who will actively tout their achievements and aggressively lobby for their promotions, Kilberg said. Since relatively few women are in the C-suite, more men need to sponsor women for them to be fairly represented at the executive level, she added.

While the workplace is generally friendlier to women than it was decades ago, continued exclusion from the C-suite and the ranks of upper management could begin to drive them away, Kilberg warned.

“They may turn down promotions, seek opportunities outside their firms or leave the corporate world altogether because the factors have convinced them that the odds of getting ahead in their companies are too daunting,” she said.

To read more about Kilberg’s remarks, visit the Memphis Daily News’ website.

RELATED POSTS:

• Four on Friday: Lori Kilberg Addresses the Georgia Society of Certified Public Accountants

Four on Friday: Lori Kilberg Addresses the Georgia Society of Certified Public Accountants

The commercial real estate sector is in the midst of a halting recovery, and women are making halting advancements in the commercial real estate industry. Those were the themes of Hartman Simons partner Lori E. Kilberg’s remarks to the Georgia Society of Certified Public Accountants earlier this week. Below are four of the interesting points she made in her presentation.

• Not Reaching the Top. While women are making strides in the commercial real estate industry, they are not consistently being promoted to what Kilberg referred to as the “C Suite,” meaning executive positions such as CEO, CFO and COO. “That’s one of the real problems,” said Kilberg, who is the immediate past president of the Atlanta chapter of CREW Network, a national organization dedicated to the advancement of women in commercial real estate. She also is currently on the organization’s Board of Directors.

“We’re getting stuck at the level below [the C Suite],” she said. “It’s hard to understand how slowly things have changed.”

• The Persistent Wage Gap. While the gap between what women in commercial real estate make and what their male colleagues make is narrowing, it’s still there, Kilberg reported.

According to a 2010 CREW study, women aged 35 and older in commercial real estate make about 75 percent as much as their male counterparts. The news is slightly better for younger women: those between the ages of 25 and 34 make roughly 89 percent as much as their male colleagues.

• Slowly Getting Better. Citing several commercial real estate forecasts, Kilberg said 2012 should be a year of improvement for all of the commercial real estate property types. The multifamily sector is poised for the strongest performance in the year ahead, followed by the industrial, office and retail markets, she noted.

At Hartman Simons, “we’re finally seeing a big uptick in [commercial real estate] activity across the board,” Kilberg said. But overall, the industry is “making its way very slowly to recovery.”

• The Office Sector: Go Intown and Buy Your Own. While the office sector continues to struggle in many areas of the country, properties in central business districts are generally performing better than their counterparts in the suburbs, Kilberg said, in part because the smaller companies and start-ups that generally lease suburban space have yet to experience renewed job growth.

Kilberg also said Hartman Simons is seeing an increasing number of users buy their office buildings. She noted that Hartman Simons did so several years ago.

Four on Friday: Marci Rossell Addresses CREW Atlanta

In her days as CNBC’s chief economist and co-host of the popular “Squawk Box” show, Marci Rossell gained a loyal following because of her lively and humorous analysis of economics and politics. On Thursday, Rossell, currently a visiting professor at DePaul University, brought that engaging style to the Cobb Energy Performing Arts Centre for CREW Atlanta’s monthly luncheon. (In the adjacent photo, Rossell, left, is pictured with Hartman Simons partner Lori E. Kilberg, the immediate past president of CREW Atlanta.)

Rossell’s nearly hour-long remarks detailed her commercial real estate and economic forecast for 2012. Below are four of the many noteworthy points she made during her talk.

• Commercial Real Estate Markets Are Improving. After bottoming out in 2009, commercial real estate experienced improved transaction volume and financing conditions in 2010 and 2011. Pricing has yet to improve, but it is always “the last phase of a [recovery] cycle,” she said.

The real estate and broader economic recoveries would be farther along if not for the disruptions caused by last year’s earthquake in Japan and the decreased consumer confidence that resulted from the federal debt-ceiling crisis. “Those two things temporarily caused a slowdown across the board,” Rossell said. “We’re just now seeing those effects wash away.”

• Single-Family REITs Are Growing. REITs that buy single-family homes and then rent them out to tenants are among the “fastest growing segments of commercial real estate,” Rossell said.

• Atlanta is at a Crossroads. The population growth that largely insulated Atlanta and much of the South from the effects of previous economic downturns has slowed, Rossell noted. During the past three years, the population of the Atlanta region has increased by just 1 percent, leaving the area more exposed to the ravages of the recent recession, she said, adding “that [percentage is] starting to look like the rest of the United States.”

As a result, Rossell said, Atlanta officials must ask themselves, “Do we become Charlotte or do we become Detroit?” Charlotte, she explained, adjusted to the decline of its manufacturing sector in the early 1990s by opening “itself up to [the] financing [sector],” while Detroit has stubbornly continued to rely on the automobile industry. 

The recent streamlining of its permitting process, which officials hope will make Atlanta a more appealing destination for business expansions and relocations, indicate the city is responding to the challenge, Rossell said.

• A Break-Up of the Euro Zone Wouldn’t Significantly Harm the U.S. Economy.  Rossell estimated there’s a 60 percent chance the euro zone will break up this year. Contrary to conventional wisdom, though, such an occurrence wouldn’t derail the U.S. economy, she said. “I believe that’s been priced into U.S. financial markets already.”

What would create a setback is an unexpected event, such as last year’s earthquake in Japan or debt-ceiling crisis. “What bumps you away from the [recovery] cycle? The unexpected things,” Rossell said. “Is there anybody here that hasn’t heard that Greece is in trouble?”

Partner Lori Kilberg to Serve on CREW Network’s Board of Directors

I officially began my duties as CREW Atlanta president in the midst of a massive snowstorm (more on that below) and ended it interviewing one of Atlanta’s most important businesswomen, Carol Tome of The Home Depot. In between, I have learned a great deal, met many fascinating women in real estate and become even more committed to CREW (which stands for Commercial Real Estate Women).

I look forward to 2012. I have been appointed to serve on CREW Network’s 2012 Board of Directors.  As a liaison for eight CREW chapters in the Southeast, I will participate in the 2012 Leadership Summits and Council Meetings taking place in Albuquerque and Montreal, respectively. This year I will also serve as the board liaison to the member education committee for CREW Network Convention to be held in October this year in Chicago. As I embark on new challenges, I am excited to welcome CREW Atlanta’s 2012 president elect Heather O’Toole who serves as general manager with PMRG.

I hope Heather has a smoother transition into her position than I did. I will never forget my first role as president – co-hosting the annual CREW Atlanta and CoreNet Global economic forecast luncheon in January – originally scheduled just days after the huge snowstorm that paralyzed the city. We were expecting 500 guests! I spent an entire day figuring out how to reschedule. Fortunately, our guest speaker Marci Rossell, former CNBC chief economist and co-host of SQUAWK BOX, was accommodating and the program was rescheduled two weeks later. The event went off without a hitch. If you missed Marci last year, you will have a chance to hear her speak at this year’s economic forecast lunch on January 12.

Despite the snowy start, the rest of the year was filled with sunnier times. I finished the year with a fireside chat with Carol Tomé, chief financial officer and executive vice president at The Home Depot. Tome told me her formula for success is to be truly passionate about what you do and to surround yourself with a team that is committed, motivated and equally passionate (and very, very smart!). It was great to start and end the year with two such impressive women.

With approximately 300 members, the CREW Atlanta chapter has a special place in my heart. My involvement helps me establish relationships with other women in the field and gives me training to better my practice. This year will be an exciting one for the chapter as it celebrates its 30th anniversary. Cheers to 30 more years and a great 2012!

 

A Morning with Carol Tomé

By Lori Kilberg, partner

Last Thursday, attendees at CREW Atlanta’s December breakfast program enjoyed quite a treat.  As one of my last acts as CREW Atlanta President, I had the honor  of interviewing Carol Tomé, chief financial officer and executive vice president at The Home Depot.

The discussion focused on leadership and Tomé shared stories about her personal journey, obstacles and successes. She said her formula for success is to be truly passionate about what you do and to surround yourself with a team that is committed, motivated and equally passionate [(and very, very smart!)].

Our chat included an update on The Home Depot, which was particularly interesting to me since the company is a long-time Hartman Simons client. At Hartman Simons, we work on new store and outparcel development for The Home Depot. According to Tomé, one of the current real estate challenges is finding creative ways to use excess property. One solution has been constructing cell towers on several sites.

Despite the distressed economic climate, Tomé believes The Home Depot has done an excellent job getting associates to buy into the vision for great customer service and making the most of a down market through collaboration.  She attributes this success in part to The Home Depot’s policy requiring every executive to spend time working in the store.

Tomé is not exempt from this rule and has worn an orange apron. She told attendees a story about a customer she encountered purchasing a wheelbarrow. The woman was concerned about getting the wheelbarrow home so Tomé helped load the wheelbarrow into the customer’s car, followed the woman home and helped unload the purchase. The woman was so grateful she offered Tomé a jar of homemade jam. Tomé said she couldn’t accept a tip, and went on her way. Several weeks later, the company received a letter from the woman praising the associate in the red-rimmed glasses. Little did she know the company’s CFO had been her helpful associate.

Tomé has held several key positions in the public and private sector. Currently, she provides leadership in the areas of real estate, store construction, financial services and strategic business development and growth initiatives for The Home Depot. In 2009, the CFO Roundtable recognized Tomé as CFO of the year. She also serves on the board of  UPS and chairs the board of the Federal Reserve Bank of Atlanta. She ranked 16th in Forbes magazine’s 2008 list of the World’s 100 Most Powerful Women and was included in The Wall Street Journal’s list of 50 Women to Watch in 2007.

Tomé is an active volunteer. She serves as a member of The Committee of 200 and a member of the Atlanta Botanical Garden board of directors. She will chair the board of the Atlanta Chamber of Commerce in 2012. 

 

Four on Friday: Christine Gorham, CCIM

Meet Christine Gorham, CCIM with Eastwood Real Estate Services. In 2010, she partnered with Lee Eastwood (last week’s Four on Friday) after 24 years of medical experience in both the operations and real estate sectors (including 10 years at Northside Hospital and Director of Asset Management and Leasing nationwide for SRS Investments).  The dynamic partnership has continued to grow Eastwood Real Estate Services, a commercial real estate firm specializing in medical and dental transactions.  Christine currently serves as a director on the board of CREW Atlanta. In 2009 to 2010 she served as co-chair for Leadership CREW and has been active in CREW Atlanta since 2005. Christine and Lee were recently nominated by CREW for the Entrepreneurial Spirit award in Washington, D.C.  Check out Christine’s insight into what’s happening in medical office and why CREW is important to her!

HS: What are some trends you are seeing in medical office real estate?

CG: There are some common misconceptions that the healthcare industry is doing well. We are still doing deals, but the industry has been largely affected by the economy and job layoffs. People are rolling the dice and not carrying insurance, which has reduced the volume of patients in doctor offices. This, combined with healthcare reform and pending Medicare cuts, has the healthcare industry in caution mode. Doctors are being more thoughtful about leasing space for their practices. It used to be that five and ten-year medical office leases were standard. Now we are seeing more three and five-year deals.

HS: How is Atlanta doing compared to the rest of the country?

CG: In terms of medical office, we are doing better than a lot of the other markets in the South. It basically comes down to density. People seem to be migrating toward larger cities and growth is still expected in Atlanta over the next decade. The city is currently experiencing mild growth while other markets are falling apart.

HS: Why has CREW been important to you?

CG: The quality and breadth of resources my partner Lee and I can utilize is immeasurable. In addition, I personally feel strong about supporting women in the industry. Last March I spoke at a conference in New York City, and out of a room of 300 commercial real estate professionals, there were only 13 women. Women are outnumbered in the commercial real estate industry and it is nice to have such an excellent network of women you can turn to and count on.

HS: What keeps you busy when you are not in the office?

CG: I am the wife of a busy husband and mom of three awesome boys; I really make an effort to attend all of their activities.  I also help with the PTSA, usher at my church, participate in my sorority alumnae chapter, play volleyball & tennis and of course cheer on those Clemson Tigers…did I say ranked 8^th out loud?  Lee and I have been working very hard and are looking forward to celebrating our successes with some great Fall-weather golf! The last time we played together in a tournament I won the long drive contest so we are planning to use my winnings at Chateau Élan very soon!

Four on Friday: Monetha Cobb of Franklin Street

Retail tenant broker Monetha Cobb, who joined up-and-coming firm Franklin Street about a year ago, works with clients including Cato, Bealls and Dollar Tree. She is heavily engaged in the Atlanta commercial real estate industry, whether planning a fundraiser for ICSC’s PAC in Georgia (sponsored by Hartman Simons) or organizing programs for CREW (where she works closely with Hartman Simons’ Lori Kilberg.)

We are big fans of Monetha (on the left in this photo), and are thrilled she agreed to participate in our weekly Four on Friday interrogation!

HS: Not everyone in Atlanta knows Franklin Street. Give us the quick story.

MC: Andrew Wright, a former Marcus & Millichap guy, started the firm in 2006 in Tampa. Atlanta, the second office, opened in January of last year. We also now have offices in Jacksonville and Ft. Lauderdale.  The main business concept of Franklin Street is results through collaboration. There are four companies — real estate, management, capital, and insurance — that make up Franklin Street and we are constantly working together to get the best solution for our clients. The core of the business is landlord services. However, I focus on retail tenant rep, so there is lots of room for growth within the company. In Atlanta, we are particularly focused on retail, though we are growing the multi-family business here and also we are interested in office and industrial.

HS: It is fun to be at a company that is growing?

MC: Extremely! The opportunity to grow with a young, very ambitious group of people was the main catalyst for my transition from a company where I had thrived for over 10 years. I am able to help influence the company’s growth.

HS: Tell me one interesting thing you are working on.

 

MC: I am working with Cato on a new concept called Versona. These are accessory stores that will be in malls, lifestyle centers and fashion-oriented power centers. Ten will open by October of this year, including two in Atlanta by end of the first quarter 2012.  Another 50 per year are planned each year companywide starting in 2012.  It is a very exciting concept that targets upper-middle-class women.

HS: You are involved in CREW. What do you like about it?

MC: I love the relationships. I have met a variety of women who work in all aspects of commercial real estate, so I have really broadened my network.

 

 

 

Lori Kilberg Attends CREW Network Spring Leadership Summit

By Lori Kilberg, partner, Hartman Simons

This time, the trip to Las Vegas was ladies-only. As President of CREW Atlanta, I had the opportunity last week to travel —along with local CREW members and delegates Heather O’Toole with PM Realty Group, Leslie Burke with Athena Real Estate Advisors and Heather Ridgeway with ATC Associates — to a national meeting of CREW leadership. We networked. We learned. We had a great time. It was an excellent experience, and now I am looking forward to the Annual CREW Network convention in Washington D.C. this September, for which I have the honor of being the programming chair. Speakers include:

Shelia C. Johnson – Co-founder of Black Entertainment Television (BET) and President of WNBA’s Washington Mystics

Norah O’Donnell – Chief Washington Correspondent for NBC and award winning journalist

Linda Rabbitt – Founder, Chairman & CEO of rand* construction company

Andrew Ross Sorkin-New York Times Chief Mergers & Acquisitions Reporter & Columnist

Diane Swonk-Chief Economist & Senior Managing Director of Mesirow Financial

Pretty impressive lineup, huh? We will blogging and tweeting from there, so you’ll get to enjoy the star power too. In the meantime, learn more the national CREW Network and also what’s happening with CREW Atlanta. For our June event next week, CREW Atlanta will be going behind the scenes of Ft. McPherson with Darlene Hawksley, Director of Real Estate and Business Engagement for McPherson Implementing Local Redevelopment.

Who ever said the good ol’ boys’ network was so great, anyway?