Interview with a friend who has made a difference in the commercial real estate industry: Norm Miller

Norm is the Hahn Chair of Real Estate Finance at the University of San Diego (USD) and is affiliated with USD’s Burnham-Moores Center for Real Estate. He has worked with the FDIC, DOJ, NMHC, NAA, CoStar and Collateral Analytics developing real estate analytic products and tools applied to real estate decisions and trends. Prior to joining USD, he was academic director and the founder of the real estate program at the University of Cincinnati. He received his PhD from the Ohio State University.

Norm has published numerous academic articles, books and articles in trade market publications on housing, brokerage, mortgage risk, valuation, and sustainable real estate including being the founder of the Journal of Sustainable Real Estate. The Geltner, Miller, Clayton and Eicholtz book “Commercial Real Estate Analysis and Investment” is the world’s leading graduate-level real estate textbook. Norm has lectured around the world, including France, Singapore, Thailand, New Zealand, India and Russia. He has worked extensively with various trade associations and became one of the first “Distinguished Fellows” of the National Association of Industrial and Office Properties (NAIOP). He is currently a Homer Hoyt Land Use Institute Faculty and Board member.

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How did Norm and I meet?

Norm has, for many years, been an active member of The Homer Hoyt Institute (HHI). HHI is an independent, non-profit research think tank and educational foundation dedicated to the professional real estate industry, established in 1967.  The Hoyt Fellows is a group of industry leaders honored for their leadership and accomplishments in the field of professional real estate. One of the major goals of the Hoyt Group is to bridge the gap between academia and industry.  Many years ago, I was fortunate enough to be nominated and accepted to become a member of Hoyt Fellows.  It’s at one of the annual meetings that Norm and I first met and have stayed in touch ever since.  The Hoyt Fellows is a great group and I am very proud to be a member!

Q.  How did you get your start in the commercial real estate industry?

A.  As an undergrad I was interested in architecture and engineering and took a number of real estate courses. I became President of the Real Estate Society at Ohio State.

Because of my involvement in the Real Estate Society I met Dick Royer. Dick helped me buy my very first property in the senior year of my undergraduate degree program.  I used my own (borrowed) equity and convinced three friends to come into the deal as partners on a four-unit row house. And that was my start.

On that deal I got to act as the broker, the property manager, the partnership manager and the contractor doing upgrades (and the labor!).  I learned so much from that small-scale investment. That deal, combined with my studies, made it obvious that real estate finance, and investments and economics were strong interests for me.

After we sold that property, I acquired another one on my own and continued, deal-by-deal while in grad school.  The hands-on experience, combined with real estate coursework provided a complimentary perspective. The key thing was having a mentor who helped give me the confidence to buy that first property.   

Q. What advice would you give to someone who has been in the industry for a short time or a student looking to get her or his start?

A.  There are a number of things that are key to me, especially today.  First, don’t wait to get started on networking.  Bring something of value to the ‘table’ – by researching topics that you know will be of interest to those you are going to meet and respect.  Try to think empathetically. If I’m a student and I’m going to meet a speaker at an event, I will do some research on them and through that find something interesting to bring up in a conversation when I meet them. I might ask if they’d like me to send that information to them. That’s actually an opening to ask them for their business card or saying I’ll follow up with a note and sending something to them.  I believe, you should never hand a business card to someone who doesn’t ask for it because they’re just going to forget about it or not know the context. I see networking as an opportunity to provide value when you can.

I use LinkedIn a lot.  I don’t use Facebook except for small, social type family things but I do use LinkedIn as a “Rolodex”

Assume your life is transparent now because of social media, so be careful what you do.  I’ve seen many a students’ job offer disappear when their social media presence was included in the research profile on them. 

Don’t wait to start investing in real estate.  Bring in as many partners as you need, but start young and gain that experience.  I tell all our students, especially our graduate students: don’t depend on your income your whole lives – you’re going to have to start investing and do it as soon as you can – especially when you have nothing to lose.  Stick your neck out a little bit.

Read voraciously - about the economy and real estate trends – everything from design to property tech, to capital market trends. Try to be conversant and knowledgeable and, at the same time, a little skeptical of accepting what you read – considering the bias, or spin, that certain people are going to put on stories. You should maintain enough current knowledge so you can question whatever you read. Know when someone writes something you can’t trust and learn whom the experts are that you can trust. 

The last thing I tell our graduates is that hard work and persistence makes up for smarts. Don’t be intimidated by people you think are smarter than you. They can’t outwork you if you choose. Work with people who are smarter and better than you.  In my career I was lucky to have hired people better than myself and that made me better. 

Q. As you look back on your career is there anything you wish you had done differently? If so, what?

A.  I wish I had invested more in real estate. My lifetime record has been pretty solid.  I wish I had sought out a little more time with mentors that I didn’t realize were mentors at the time. Today, I treasure the relationships with people around the globe whom I respect.  I feel lucky to have the opportunities that I’ve had. There’s nothing significantly different career wise that I would have done except cherished those opportunities and relationships a little earlier than I did in both the private sector and the public sector.

Q. Who have been the biggest influences on your career? How? Why?

A.  That would probably be a list of a few hundred people! My dad taught me about hard work; Dick Royer got me into my first real estate deal; Ron Racster at Ohio State was a mentor as was C.F. Sirmans.  I actually knew and was influenced by James Graaskamp, who started the first graduate program in real estate in the U.S. at the University of Wisconsin.

Then there are colleagues I’ve worked with like Dave Geltner at MIT; Mike Sklarz at Collateral Analytics; Jeff Fisher and all my colleagues at Home Hoyt; Malin Burnham in San Diego - who wrote ‘Community before Self”, Jim Young of Realcomm and folks like Geoff Dohrmann, Mary Ludgin, Jacques Gordon, Bob Zerbst, Dan Kohlhepp, Paul Wendt, Will McIntosh, Dave Pogue and the list goes on and on…sorry to my many friends.

Stay safe my friends. 

Steve

A friend who has made a difference in the commercial real estate industry: Paul Michaels

A friend who has made a difference in the commercial real estate industry:  Paul Michaels

Paul has been with Invesco Real Estate (IRE) since its inception in 1983. As Director of North American Direct Real Estate, he is responsible for leading IRE’s North American business.

Previously, Paul served as Director of US Portfolio Management responsible for portfolio strategy for institutional pension fund clients. Paul is currently Chairman of IRE’s US Direct Investment Committee and has responsibility for portfolio design and investment process for several of IRE’s separate account clients. He has 35 years of real estate experience including both debt and equity transactions in industrial, multifamily, retail and office properties.

Paul holds a Bachelor of Business Administration degree in Finance and Real Estate from The University of Texas at Austin.

How Paul and I met?

We met at the NAREIM (National Association of Real Estate Managers) Executive Officers Meeting in 2014. Having both been around this great industry for a while we realized that we knew a bunch of people in common. As I’ve mentioned to younger people in the industry – that right there is the importance of networking. While it’s important to network with people in ‘your generation’ it’s equally important to meet those of us who have been around a while. Most, if not all, ‘veterans’ like meeting the younger people as they have the same passion for the commercial real estate industry as we have had.
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Paul retired this month after 38 years at Invesco. As everyone who knows Paul will tell you, he is very humble. Due to the virus situation, Paul was unable to say goodbye to his colleagues in person. But when he shared his email to his colleagues (and some of their replies) I asked if I could include that here.

We agreed that feedback from people who he has worked with over the years would add more depth to what Paul felt was important to his success. I’ve included the farewell email he sent to his Invesco colleagues along with excerpts from a few of the very touching email replies that served as guiding principles for the long career that Paul loved.  

Paul’s retirement email to Invesco colleagues

Well after 38 years, this isn’t exactly how I had hoped my last week at Invesco would be.  What I will regret the most is not being able to say goodbye to many of you in person.  But I’m sure I will have plenty of free time, so I would always love to grab lunch, a drink after work, or just chat on the phone if you have the time.  I often reflect on what an incredibly lucky person I have been based on a few simple decisions in my life.  The first was deciding to marry my wife (it did take a little arm twisting), and a close second was accepting this job opportunity as a very young college graduate.  I never imagined the joy I would get from my career in the years to come.  I can only hope that I am able to experience the same enjoyment during my retirement.

I’ve attached my new contact information in hopes that I can stay in touch with many of you.  In the meantime, please stay well and wishing you much happiness in the years ahead. 

Happy trails to you

‘til we meet again

And keep smilin’ until then…

Excerpts from his colleagues to Paul's retirement announcement email:

Thank you for everything you’ve done for the company, but a special thank you for taking the time to reach out to me on an individual basis several times a year for a birthday lunch or a catch up. It’s rare for someone in your position to do that, and it went noticed by everyone at the firm.

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…as my boss you trusted me with valued clients and taught me the Invesco ways.  And you were patient when I was a bit stubborn at times. Finally, you gave better annual reviews than I have experienced in all my 36 years. Thoughtful, organized and constructive whether or not I liked everything you had to say.   

But much more important than the professional relationship is the friendship you have demonstrated over the years. The personal relationship dwarfs the professional. You always made time for me.… and the time you made for me has always been noticed. You have always been a great boss, mentor and friend and you will be missed.

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I've always admired your convictions in investments and your strong adhesion to them, in what sometimes seemed like the sole person to question a stance...Invesco has been a better place with your leadership, and I will reflect on your ideas and arguments going forward even without your presence here. 

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Our firm will never be the same after your retirement, but the culture and values you helped establish will remain as reminder of the impact you had on this firm!

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 It’s very bittersweet to see you go. I’ve watched you literally be the backbone of Invesco in the time that I’ve been here…I don’t know a more dedicated and focused person. You may not know this, but I’ve learned quite a bit from you. The main thing….”pay attention to the details.” Whether it be as small as snack diversity or some high-level decisions regarding a major project, you taught me that the details matter on both ends of the spectrum.

I’ve only come across a few people in my life that impacted my professional sense and work-ethic paradigm and although you didn’t know it, you became one of those individuals.

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I just can’t let this “Invesco milestone” go by without giving my heartfelt comments about you to our entire organization.

I don’t think it is fully appreciated how “instinctive” Paul is as an institutional real estate investor.  Given his acumen, he could have easily taken the “glass half full” approach in his role as head of the North American Investment Committee, but he, to the firm’s (and client’s) great benefit, took the much harder role of risk assessment and probabilities for mitigation. He saw (or chose to see) investments in the context of historic market cycles, and therefore, the long-term probabilities for returns to be resilient while remaining pragmatic in prudently growing client portfolios. We all owe you our gratitude for this role done well for so many years.

I know many of us, myself included, have stories of Paul’s compassion for our families as we have periodically encountered the inevitable rough patches in life. Paul, I hope that this aspect of your career and your character brings you the great pride and joy you deserve.

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Your integrity stands as a mark for all of us. Because of your influence I know we are a better firm than we would be otherwise.

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You are a special person and leader in the organization. I really liked how your actions showed how much you cared about everyone professionally and personally. Thank you making special one-on-one time with us in accounting. I hope I can continue the leadership that you set as an example.

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You are a very effective leader, consistent and fair. As a bonus, you have a very enjoyable personality and are a pleasure to be around. You built a wonderful business in Invesco Real Estate and a lot of us here owe you a large debt of gratitude and thanks for creating such a wonderful environment.  

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I have always considered you a mentor, an unbelievable and brilliant real estate executive, and a good friend that I can confide in who I know has a heart of gold.

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Thanks for giving me the benefit of the doubt 22 years ago!  It’s been a pretty darn good ride.

We’ve all learned a lot from the way you approach the business and I’ve always referred to you as the consummate, client first, fiduciary. I hope our clients appreciate how well they had it!

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I have thoroughly enjoyed the short time that I have gotten to work with and learn from you. I can only hope that one day I will have half the investment intuition and acumen that you have shown me at the helm of this organization and sitting before our shared clients. I’m very proud and humbled to be a part of what you have built and hope to help carry this torch forward.

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It definitely won’t be the same without you around. If I had to pick one thing where you had a significant influence on me it would be NO BS. Working with you I came to understand even more clearly the value in playing it straight, not giving half-baked answers and following up. I’ve given that advice many times over the years to our younger colleagues….
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Here are Paul’s answers to the ‘usual and customary interview questions’ 

Q.  How did you get your start in commercial real estate?

A.  A friend of mine signed me up for an interview in one of our real estate classes in college. Real estate was not necessarily my main area of focus at the time.  But it was my only job offer upon graduation, so away I went…..

Q.  Looking back on your career is there one thing you wish you had done differently? If so, what and why?

A.  I could probably write a book (or two) on things I wish I had done differently.  But towards the top of the list would be being more patient and understanding around people, especially those who had different views and opinions than my own. 

Q.  Who have been the most significant influences in your career? How? Why?

A.  David Ridley, the founder of Invesco, took a bet on me when I was young and naive.  He was a great mentor and manager of people.  Never shy to chew me out when I went astray, but also extremely supportive and provided me with great career growth opportunities during the 30 or so years that we worked together.

Musical Fundraiser for people with ALS

Hi.

I've just released a 6 original song album as a fund-raiser for MAC Angels Foundation - an organization which provides services and programs to enhance the quality of life for individuals, family members and caregivers who are impacted daily by ALS.

I titled the album “Shoot for the Moon” in part because I felt that that phrase represented some of what MAC Angels Foundation stands for – helping the families with someone living with ALS to “Shoot for the Moon” and live their life to the fullest.

Performing on the album are 3 real estate industry friends:  Beth Thomas (Bain Capital), Fred Gortner (Paladin Realty Partners) and Ken Munkacy (Kingbird Properties).  Didn't know these folks were so talented?  Please by the album download to hear for yourself!

I covered all expenses in recording the album and 100% of the proceeds go to MAC Angels Foundation.

The donation is $60 (or more if you feel so inclined). 

Here's where you can buy the album.

Both MAC Angels and I greatly appreciate your support.

Thanks!

Steve

CRE Women's Leadership / Moderator & Panelist Coaching Workshops - NYC - May 2 & 3

CRE Women's Leadership / Moderator & Panelist Coaching Workshops - NYC - May 2 & 3

Liz and I are pleased to let you know that this month begins our 7th year as Felix / Weiner Consulting Group!

Wow, time flies, doesn’t it?

In June 2014, we were proud to be ahead of the curve when we launched our Women’s Leadership Workshops for the ‘male-dominated’ commercial real estate industry. Hundreds of women - from more than 100 industry firms - at all levels in their career - have attended our 40+ workshops across the U.S. and in London.

Today, I’m writing to tell you about two professional development workshops in NYC during the first week of May – exclusively for women in the commercial / institutional real estate community.

We thought your colleagues and / or industry friends might be interested in one or both of these workshops and would greatly appreciate you sharing this information.

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Thursday, May 2 - Women’s Leadership Workshop

Help women in our male-dominated industry develop and enhance their professional presence.

12:30-4:30pm immediately followed by wine & cheese networking

Friday, May 3 - Moderator & Panelist Coaching Workshop

Coaching women to better present themselves and effectively represent their firms during panel opportunities at industry events - we want to see more women on stage and not just in the audience!

12:30-4:30pm

Both workshops are highly interactive and offer participants the valuable opportunity to expand their network with other women in the industry.

Please click here to learn more and register.

Thanks for your support of our women’s professional development workshops!

Liz & I greatly appreciate it!

Steve

Happy 2019!

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I know it’s a few days early but wanted to wish all of you a very happy, healthy and prosperous 2019!  Boy oh boy – where did 2018 go?

On behalf of my business partner Liz Weiner I want to thank all our clients and workshop attendees for making this year the best we’ve had in our almost 6 years in existence!

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In early 2019, I’ll be offering a number of new original songs for sale on iTunes.  All sale proceeds (other than iTunes cut) goes to Mac Angels (https://macangels.org) a foundation that provides services and programs to enhance the quality of life for patients, family members and caregivers who are impacted daily by ALS. Since inception, MAC Angels has helped over 500 families in Connecticut, Southeastern New York and Northern New Jersey. 

I’ll let you know when the songs are available.  For now, here’s the latest one we’ve recorded called ‘Break Your Heart.’  My son Kevin and I co-wrote the lyrics and that’s Kevin singing lead vocal. 

Playing on the tune are some of the finest musicians in the Asheville, NC area:

Bruce Lang (http://www.bigcreekmusic.com/onstage.html)

Paul Babelay (https://paulbabelay.com)

Molly Rose Reed (http://www.underhillrose.com)

Lynn Netherton (pedal steel)

I hope you’ll support Mac Angels when the tunes are available.

Thanks a lot!

Steve

https://soundcloud.com/xilef-3/break-my-heart-9-18-18

Happy Thanksgiving...from Merida, Mexico

Gaining some distance from my everyday life gives me a chance to have some real perspective on things. This year, I have had a lot to give thanks for and to celebrate.

This year I took two vacations that I’ve wanted to do for many years – the Alaska cruise which I wrote to you about and a trip to Italy’s Amalfi Coast.  I remember when my mother and father came back from their trip to Amalfi, a million years ago.  My father, who loved to drive, was so excited about the winding, narrow roads there.  His face lit up when he told us about it.  Now I’ve also experienced it and, it’s likely that it’s even crazier now, given there are more cars, more big buses, more motorcycles and scooters and more people walking on the roads that have no sidewalks. The Italians are very aggressive drivers – and very good.  As in most things in life, to survive you just have to do what people do in their own cultures.  “When in Rome, do as the Roman’s do.”

As I think about Thanksgiving, I’m going to take the liberty of not only mentioning some things I’m thankful for, but also grateful for – they’re pretty much one in the same, right?

I’m grateful for having my health.  All of us have experienced too, too many people we know and love who, no matter how young or old, have dealt with or are currently dealing with really crummy health matters.  In our wonderful industry we’ve seen too many of our friends and colleagues die way too soon.  Each one is a wake-up call to me.

I’m grateful for having such a wonderful family.  My son Brian, his wife Bridget and their boys, Sean (9) and Gavin (7).  My son Kevin, his wife Marissa and their 7-year old twins, Ben and Edie. 

I’m grateful for having met so many truly nice people in my career – around the world.  

I’m grateful for all the wonderful musicians I’ve shared the stage and studio with – playing rock and blues keyboards, singing, writing songs and now in the process of recording my third ‘album’ – I’m a lucky guy.  Mentioning the new ‘album’ – I’ve been advised that very few people buy CD’s anymore. So, I’m going to sell the songs individually on iTunes.  After they take their cut, 100% of the proceeds will go to Mac Angels Foundation, a Westchester, New York - based organization whose mission is to enhance the quality of life for individuals, family members and caregivers impacted daily by ALS, by providing the compassion, education and unique resources needed to manage the devastating effects of this disease.​

I know of Mac Angels via my long-time friendship with Paul McEvoy, one of the true gentlemen in the institutional real estate community.  Paul and his wife M.C. were involved in the launch of Mac Angels and Paul currently serves as President of the organization.

I’m grateful for the fact that I have no debt and that my life has become fairly simple – after being complex for many years.

I’m grateful for the working relationship that Felix / Weiner Consulting Group partner Liz Weiner and I have developed.  It’s not easy being in business for yourself and over the past 6 years Liz and I have become a good team and built a respectable business.  Both of us are grateful for the clients and people we’ve worked with and especially those that have hired us more than once J

I’m grateful for the mentors, supporters and really, really good friends I’ve had in my life and my career. I had started listing them but was concerned I’d overlook someone so better left unlisted…you know who you are – in some cases I wish I had listened to them more.

In closing this piece, I want to share with you something that I learned a few years back that has helped me live a somewhat more peaceful and happier life:

“Whatever you do first thing in the morning you will do all day. Be happy. Smile. Laugh. Be grateful for all that you have.”

With that, I wish you and your family a wonderful Thanksgiving – and hopefully long holiday weekend.

P.S. Can you believe that there is only a little over 5 weeks left in 2018!  Boy, how amazingly fast time is flying by.  

Street in Merida

Street in Merida

New Restaurant in Merida

Mayan Ruins, Uxmal, Mexico