Investing from the Ashes

Yesterday I had the opportunity to appear on a very interesting panel at the Bloomberg Commercial Real Estate Conference: “Investing from the Ashes: The Distressed Market.”

The panel examined the investment outlook and areas of both risk and opportunity in distressed real estate. Representing the viewpoint of special servicers was Robert Lieber of C-III Capital, while Billy Macklowe offered the owner’s perspective, focused particularly in New York City.

As was mentioned on the panel, right now the outlook for distress is a mixed bag: We’re at a four-year low for new distress, but there are signs that 2013 volume will increase. CMBS loans remain the largest share of outstanding distress, and there’s another major wave of delinquency in the future as the 10-year loans from 2005-7 mature.

We see the next generation of opportunity is in secondary markets, where population growth and fundamentals (housing, job growth, etc.) are starting to rebound. In some cases like Tampa and Memphis, these markets are early beneficiaries of the shift in global trade patterns and changes in our logistics network in anticipation of the 2015 Panama Canal expansion. We also see industrial property as a stable asset class, with the least exposure from CMBS distress.

From our perspective, the greatest market risk is from interest rate sensitivity. A rise of 200 basis points in interest rates over the next two years—below the long-term trend—could, by our estimation, potentially add 20 to 25 percent new distress to the market. The hope, of course, is that interest rates would be rising in response to other positives in the economy as a whole, but it’s nonetheless a major risk for investors in the distressed space.

I very much enjoyed the opportunity to participate, and hear the perspectives of our peers in the market. Thanks to Beth Jinks and Bloomberg News for making it possible.

Here is a link to the video: http://bloom.bg/PShonm

Colliers International again ranks among IAOP’s Top 100 Global Outsourcing Companies—and we’re the only commercial real estate firm to make the list for seven years running

All of us at Colliers are extremely pleased to be included among the leading outsourcing service firms worldwide—and for the seventh year in a row! The International Association of Outsourcing Professionals (IAOP) ranked Colliers #21 in its annual list of Top 100 Global Outsourcing Companies. Thanks to our enterprising spirit and shared sense of initiative, Colliers is the only commercial real estate firm to be included on the list year over year since 2006.

What makes this designation especially gratifying is that IAOP specifically noted that customer references were one of our major strengths. Delivering service excellence is part of our mission and what distinguishes us as a global leader. Clients who are impressed with our service—and who are most likely to refer us to other clients—are critical to our success and are helping drive Colliers business growth in the U.S. and around the world.

In addition to customer references, IAOP used three other criteria to determine the rankings, including size and growth, organizational competencies and management capabilities. Colliers was also included on several sub lists, demonstrating our leadership in multiple areas including Number of Centers Worldwide, Companies with the Most Company Presence, Best Corporate Social Responsibility in Outsourcing, Leaders-Services Industry, Leaders-Corporate Services, Leaders-Real Estate & Capital Asset Management Services.

All of the companies on the list were featured in a special advertising section in the July 23 Global 500 issue of Fortune magazine, with more details on the companies, ranking and selection process. Congratulations to all of the Colliers professionals who are consistently working to exceed client expectations and keep our organization at the top.

Giving Back to the National Leadership Academy

Are leaders born or made? I believe it’s a little bit of both. While many people have some leadership qualities to build upon—whether it’s great communication skills, the ability to inspire others, or a steady hand under adversity and unexpected challenges—most develop these traits over many years and through many experiences. 

I also believe that leadership is best fostered with early training and exposure to mentors and role models. The founder and staff at the National Leadership Academy share my viewpoint. I was both pleased and honored when the group recently asked me to participate in a panel led by one of the leading innovators and entrepreneurs in education, Kristina Scala, and also featuring Jodi Rolland, who is one of the highest-ranking female executives on Wall Street with Bank of America Merrill Lynch. Kristina’s theme for the panel was “The world is run by those who show up and hustle,” and she asked the panelists to share their experiences and personal stories along this theme. 

The National Leadership Academy provides intensive, hands-on leadership and service training to high school students from around the country in an annual four-day camp in Denver, Colo. The academy, part of the Spaulding Leadership Institute, is a nonprofit youth leadership development organization founded in 2000 by Tommy Spaulding, a world-renowned speaker on leadership and author of a best-selling book, “It’s Not Just Who You Know.” (If you attended the Colliers National Meeting last year in Chicago, you will remember him as our engaging and passionate keynote speaker.)

Every year, high school students and recent graduates apply to the academy and those selected get the chance to meet with young leaders from around the country, hear from leadership experts, engage in their own mountain leadership experience and spend time serving the local community. 

Spaulding started the academy to provide the life skills—leadership, volunteering, civic involvement—he felt students needed, but weren’t getting before they graduated high school. In addition to leadership and influence, some of the topics covered in the academy are communication, teamwork, time management, interpersonal relationships, assertiveness, self-confidence, empathy and humility. The academy’s vision “… is to create civic and service-minded high school students by developing their leadership skills, inspiring purpose, and empowering them to make a difference.”

Students who attend the academy often report that the training is life-changing and that they have more confidence, motivation, self-esteem and an increased ability to create connections with others.

 ‘Community’ is one of the four core values at Colliers and we encourage everyone to live out these values and ‘walk the ‘talk.’ Reaching out to help educate and inspire young people was an especially rewarding way for me to give back—especially when it encourages kids to become more community-minded themselves. I was happy to contribute my time and my own leadership experiences to this worthwhile organization that has trained so many future leaders who will go on to make a real difference in the world.

Crowdsourcing and commercial real estate

Crowdsourcing is a practice that is becoming more mainstream and used more frequently by all kinds of companies. It’s a fascinating concept that’s developed as we’ve become a more global, connected and seamless marketplace.  If you’re not familiar with the term, crowdsourcing is a way to reach out to the masses or specific communities online (the crowd) to outsource tasks typically performed by an employee or employees on staff or to tap resources not available to companies via traditional labor resource models.
Tapping into the collective wisdom of the crowd can be a more efficient and sometimes more economic way to get things done. One of the most common examples of crowdsourcing is Wikipedia, where users share their expertise and make continual updates to the vast online encyclopedic resource.

In addition to crowdsourcing labor, organizations are using it to generate new creative ideas in the way of logo or naming contests. For example, Pepsi used crowdsourcing in 2007 to ask consumers to design a new look for the Pepsi can in exchange for a $10,000 prize. Others use it to generate donations for a good cause or to support innovation. Researchers and game designers at the University of Washington developed Foldit, an online game that uses crowdsourcing to ‘solve puzzles for science.’ A group of video gamers helped them discover the structure of an enzyme used by retroviruses similar to HIV. It was a major research breakthrough and one that biochemists had not been able to solve for years.

Several new companies help their clients access a crowdsourcing platform. San Francisco-based CrowdFlower found its niche by providing companies with data clean up via crowdsourcing. The ‘crowd’ handles simple tasks such as matching business names with addresses. The company has had more than 2 million people around the world work for them. They’re able to provide an inexpensive labor pool that can ramp up quickly to manage a large volume of work. A few other firms that offer access to crowdsourcing are Amazon’s Mechanical Turk and Clickworker.com.

I recently read about a small startup in our industry using crowdsourcing to connect developers with the local community. Through its website, popularize.com, the company enables developers and property owners in Washington, D.C., to take the pulse of the local community and deliver the kinds of companies and services local residents want. They post large-scale signs on empty building exteriors asking, “What would you like to see here?” Users log onto the website, find buildings in their area and then provide input. Then, it’s up to developers and property owners to determine the economic viability of the suggestions. The company is scheduled to launch a new platform that will allow users to directly invest in buildings listed on the Popularise site.

Tapping into the opinions and expertise of the crowd has huge potential as a way to get fresh perspectives on complex challenges, get access to talent around the world or get new ideas to develop or market products. The question for Colliers and for our industry is: Can we leverage the wisdom of our global organizations, with the vast knowledge and expertise, in new and unique ways to take real estate services to higher levels of professional excellence? I welcome the challenge in exploring this idea and I welcome your feedback on how you see crowdsourcing impacting our industry.

A Look Back at Everyone Gives | 2012

Everyone Gives has just released final numbers from the first global social giving campaign of its kind last month, and they’re really something for all participants to be proud of.

Here’s the data from a little over two weeks:

•           More than 12,000 donors
•           …in 474 cities
•           …across 64 countries
•           …raised over $740,000
•           …for 1,479 charities around the world.

100% of all donations went directly to their intended beneficiaries, which ranged from well-known international non-profits to small local and community charities. Thanks to all who participated in this year’s event, whether by donating, promoting, organizing or mobilizing.

We’re already making plans for Everyone Gives in 2013; you can keep up with the latest developments through Facebook, Twitter and LinkedIn. But you don’t need to wait until then to donate. (You can review the full list of Everyone Gives charitable partners here.)

The public support that this Everyone Gives received from across the world makes clear is that the spirit of giving is alive and well. The capacity of social philanthropy campaigns to amplify that common desire to do good in the world is truly awe-inspiring, and I believe we’ve only seen the beginning. 

Colliers Again Named an Outsourcing Leader

Colliers International has again been named to the International Association of Outsourcing Professionals® 2012 Global Outsourcing 100® service providers list. 

Every year, IAOP recognizes the best outsourcing firms across multiple industries, as selected by an independent judging panel. This is the seventh consecutive year that Colliers has been honored with this distinction. The Global Outsourcing 100 is more than just a ranking--it is a critically important resource for any company seeking best-in-class service providers and vendors.

The complete list will be unveiled by IAOP on July 23. You can view the 2011 results here. 

Thanks to all of our professionals and staff for once again establishing Colliers as a leading global real estate services provider.

Everyone Gives Launches Next Week

Eight days to go before the launch of Everyone Gives, and our list of charitable partners worldwide is over 400 and still growing. In the U.S. we’ll be collecting donations for March of Dimes, United Way, the American Red Cross, Habitat for Humanity, Make-A-Wish and many more national organizations. Locally, our professionals, partners and colleagues will be supporting foundations in their own communities. Whatever you’re most passionate about—fighting poverty, protecting and nurturing children, curing disease—however you want to do good in the world, you’ll find a cause to donate to among our charities.

As February 22, 2012 grows nearer, it’s exciting to see the buzz that Everyone Gives is generating through our social media channels. The campaign has more than 1,700 fans on Facebook, and more than 500 followers on Twitter. We’ve seen steady increases in activity as word spreads and more and more people across the globe get involved.

Participating in Everyone Gives is easy. Click the video below to learn how:

Follow Everyone Gives on Twitter, Facebook, or LinkedIn for the latest updates and news. Spread the word about the campaign to your own personal networks.

The pieces are in place. The vision of Everyone Gives—to amplify the power of individual giving—is poised to become a reality. Have you added your voice?

Everyone Gives

February 22, 2012 marks the launch of a unique social giving campaign: Everyone Gives. This giving event—dubbed the most inclusive initiative of its kind—will enable charities, companies and public figures to collaboratively mobilize their networks, raising awareness of a global charitable event that will demonstrate the collective power we all share to dramatically impact the world for good. 

The premise is elegantly simple: use social media and technology to leverage your personal networks and connections, and contribute to whatever individual cause or charity you care most about. What’s more, those you bring to your giving tree can immediately do the same with their networks as well. 

Everyone Gives is the vision of Doug Frye (Global CEO of Colliers International), who throughout his career has been an amazing leader for social good and aspirational community impact. He believes in the power each and every one of us has to change the world in which we live. He believes that if everyone gives, nothing is impossible. 

To be clear, Everyone Gives is not itself a charity. It’s a community-based platform that connects causes with givers; every cent donated goes directly to the participating charities. Colliers International was the first corporate sponsor of the initiative, donating resources and time to launch the project. The goal is to harness individual inspiration to create a global torrent of giving that can truly change the world. 

It’s a simple process. Make a small donation—say, $5—to a participating charity of your choice. Through the Everyone Gives website, your donation initiates a “tree” of giving; your gift is selectively shared with your personal network, who are asked to contribute and encourage people in their network to join in. You can see your “seed” gift grow exponentially.  Personally, the most exciting thing for me about Everyone Gives is the way it will bring people together.

Learn more by visiting everyonegives.org. Stay in touch with Everyone Gives on Twitter, Facebook or LinkedIn. Please help spread the word, and we’ll see you on February 22.