By Paul Rosta, Senior Editor<\/p>\n
Whatever their regions or business lines, all commercial real estate executives face the same fundamental question: what is the best way to move forward in this promising but still highly unsettled market? At the Urban Land Institute\u2019s spring conference in Boston this week, many participants\u00a0searched for answers.<\/p>\n
Some industry leaders challenged their peers to approach their business with fresh eyes. \u201cThe single thing that I think all of us have to keep in mind is that we\u2019re really in a long-term industry,\u201d said ULI chairman Jeremy Newsum during an interview with CPE on Thursday afternoon. \u201cI think there\u2019s a responsibility on leaders to provide the judgment. That may mean you give something up in the short term\u201d in the interest of a greater long-term benefit.\u00a0 Newsum, who served as chief executive of Grosvenor from 1989 to 2008, specified two strategies that he believes are highly desirable. First, \u00a0far less reliance on debt than there was in the previous cycle. And second, \u201cI would hope we would see more diverse businesses able to cope with cyclical changes.\u201d<\/p>\n
The Fortune senior editor and business pundit Geoffrey Colvin drew lessons from Wednesday\u2019s news that Morgan Stanley may have lost $5.4 billion on its real estate investments. For commercial real estate\u2019s decision-makers, the message is clear: \u201cThe ability to understand the risks that others don\u2019t see is going to be increasingly important for everyone in this business,\u201d Colvin declared. \u201cIt is always when the risks appear least that they are the most.\u201d<\/p>\n
Colvin also took a cue from Bank of America\u2019s hiring of Northrop Grumman executive Charles Noski as its new chief financial officer. Noski\u2019s appointment struck Colvin as a reminder that times of economic transition offer rare opportunities to upgrade talent. As Colvin put it, \u201cIt is also a great time to steal great performers, because they are available like they never are\u201d otherwise. Finally, mentioning a story about creative entrepreneurship, Colvin reminded his listeners that success involves thinking more deeply about customers\u2019 changing problems than competitors do\u2014then inventing solutions.<\/p>\n
Leadership was also the theme of one of several day-long, interactive roundtables on Thursday. Moderated by Lynn Thurber, chairman of LaSalle Investment Management, and Mayhood Co. president David Mayhood, the wide-ranging session touched on issues ranging from the structure of real estate organizations to leadership succession. One session participant ticked off a series of qualities that make a good CEO, such as a strong background in finance and top-notch management skills. \u00a0\u201cDealmakers don\u2019t always make great CEOs,\u201d the participant commented. \u201cYou need people who are player-coaches, who are good managers.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Whatever their regions or business lines, all commercial real estate executives today face the same fundamental question: what is the best way to move forward in this promising but still highly unsettled market?<\/p>\n","protected":false},"author":445,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21742],"tags":[],"class_list":["post-1004019387","post","type-post","status-publish","format-standard","hentry","category-latest"],"acf":[],"yoast_head":"\n