The Leadership Edge in CRE Investing

The Leadership Vacuum in CRE

Welcome to the third edition of "Beyond Buildings with The Freeman Factor," where today we tackle the often-overlooked component of CRE success—leadership. It's the silent engine that drives progress and profitability in the real estate realm, and yet, it remains undervalued in typical CRE discourse.

Leadership starts with leading yourself.

• If you aren't effective at leading yourself, how can you lead others?
• People follow those they see emulating the type of person they want to become. So, you must first be that person.
• If you don't keep the promises you are making to yourself, how can others do the same?
• What type of person would you want to follow? Work to understand what values and traits they have, and build them within yourself.

Let's define what Leadership is (in my opinion)

I have read dozens of books on leadership. The best definition I have found comes from Mark Miller's book, the HEART of Leadership. I am a big fan of acronyms, so here's another one to add to your arsenal.

• Hunger for Wisdom. A hunger for wisdom fueled by a commitment to lifelong learning will equip you for whatever lies ahead. Be open to input, new ideas, contrarian opinions, and views. Establish a network of counselors to call on for their advice and wisdom.?
• ? Expect the Best. Many people in the world see events as they are; leaders are different in that they see things that could be. And the future they see is always a better version of the present. We believe we can make a difference; we think we can make the world, or at least our part of it, better. Leaders are generally more optimistic than non-leaders.?
• ? Accept Responsibility. Assume responsibility for your actions and the action of those you lead. It is about being accountable for actions and outcomes—yours and others. Leaders accept responsibility, in part, because they are sold out to the vision. It matters more than they do.?
• ? Respond With Courage. Practice taking action. As you go through your day, ask yourself what action would be appropriate here? Your missed opportunities are often no big deal in isolation. They are, however, cumulative.?
• ? Think Others First. To think others first is not primarily about what you do—it is about how you think. It’s all about what’s in your heart. How can I Serve this person? What does a win look like for him or her??

Leadership in Daily Interactions

True leadership manifests in daily interactions. Consider how a small shift in approach, like actively listening to a client's needs or guiding a colleague through a complex deal, can yield substantial relationship dividends. These daily wins pave the way for the big triumphs in CRE.

Leadership is not a one-time event. It is an accumulation of interactions that you have with the people that are around you.

Leadership Beyond the Boardroom

Leadership in CRE isn't confined to the corner office; it's an omnipresent force in every negotiation, development project, and investment decision. It's about vision, influence, and the ability to navigate market complexities with confidence.

Transforming Vision into Reality: Leaders in CRE can see beyond the current market to the potential that lies ahead. They transform vision into strategy, creating opportunities where others see obstacles.

Influence and Negotiation: The best CRE leaders wield influence not through authority but through persuasion, integrity, and expertise. Their negotiation skills forge deals that benefit all parties involved.

Common Solutions and Their Pitfalls: Why Standard Leadership Advice Doesn't Cut It

Many turn to traditional leadership books and seminars, but these one-size-fits-all solutions often miss the mark in CRE. Here’s why:

• Generic Strategies: Standard leadership strategies lack the customization needed for the nuanced, ever-changing CRE market.
• Underestimating the CRE Context: Leadership in CRE involves a unique blend of analytical acumen, market intuition, and interpersonal dynamics that generic advice fails to address.
• Ignoring Personal Leadership Style: Effective leadership in CRE requires a deep understanding of one's leadership style and how it fits within the broader industry context.

Cultivating Your Unique Leadership Style

This edition's challenge:

1. Reflect on a recent CRE interaction. Did you lead, follow, or simply participate?
2. Identify one way you could have exerted greater leadership and commit to implementing that change in your next interaction.
3. Take notes, and create what Dalio calls "principles," so that when this situation arises in the future, you know how to best deal with it.

Leadership Stories from the Field

What leadership challenges have you faced in your CRE journey?

Share your experiences and lessons learned. We can all learn from each other.

Closing

Leadership starts with YOU. Self-leadership. Leadership is more than a title; it's the aggregate of our actions and decisions. In CRE, it’s about steering the ship through both calm and stormy seas with an unwavering hand. Harness your leadership potential, and watch as new horizons in CRE unfold before you.

Stay tuned for Edition 4, where we'll explore the interplay of market dynamics and investment strategy.