Robert Holder, Will Menkes of Holder Properties On 5 Things You Need to Create a Highly Successful Career in the Commercial Real Estate Industry Today

The commercial real estate industry is a dynamic and challenging landscape that offers enormous potential for success. However, it requires a unique blend of skills, knowledge, and aptitude to truly excel. How does one establish themselves in such a competitive field? What does it take to consistently rise to the top in commercial real estate? How does one rise above the headwinds that are challenging the commercial real estate industry today? In this interview series, we are talking to commercial real estate professionals, brokers, investors, leaders of Real Estate Firms and Real Estate Investment Trusts (REITs), as well as anyone who’s found significant success in this industry. As part of this series, we had the pleasure of interviewing Robert Holder , Managing Partner and Chief Executive Officer of Holder Properties , and Will Menkes , Managing Partner and President of Holder Properties .

In Spring 2023, Robert Holder rose to Chief Executive Officer and Will Menkes stepped into the role of President while John Holder remained on the executive board as the real estate firm’s Chairman. Both Robert Holder and Will Menkes, who now serve as joint Managing Partners of the firm, bring a fresh perspective to the C-suite during a time when innovation is necessary for success in the real estate market.

Robert Holder and Will Menkes are focused on the future, looking for ways to generate long-term value for the business based on a rich history of delivering continued results for its clients. The duo has plans for strategic growth across development, investments, and management in the coming years, capitalizing on the unique opportunities presented by the company’s strong reputation and the current dislocation in market conditions.

Thank you so much for joining us in this interview series! Before we dive in, our readers would like to learn a bit about your origin story. Can you share with us the ‘backstory’ of how you got into the real estate business?

Will — I started my career in NYC, first while working in Barclays Capital’s investment banking division focused on financing and advisory services, and then in the acquisitions department of GTIS Partners, a global real estate private equity firm. I came to Holder Properties after leaving NYC in 2016 for Atlanta drawn to the opportunity to help mold the company’s future. HP has a great reputation and track record and all the elements to grow and continue to thrive. I started as a Senior Director of Acquisitions and Development, focused initially on sourcing deals, raising capital, and getting new projects off the ground. Over time, my role became more strategic in nature — we explored more innovative financing structures, institutionalized our investment process, raised our first fund, expanded our investment mandate, and put a new emphasis on acquiring existing properties to complement our development expertise.

Robert — I also started my career in NYC. After college, I started as an analyst at a smaller real estate private equity company called Capital Trust before moving into an associate role at Blackstone in their Real Estate Debt Strategies group. In 2017 I moved back to Atlanta to work for HP. At that time there was no true group dedicated to capital raising, deal sourcing, market research and asset management, so that was where we (Will and I) saw the most opportunity to enhance what HP was already doing. In my time here thus far, we’ve closed and managed some very complicated deals, raised our first fund, and there is a remarkable team in place to move us forward.

Can you tell us about your company and what makes it stand out?

Holder Properties has a successful 43-year track record in development, acquisitions, and property management across property types. As property managers, we currently oversee over 3M square feet and we’ve acquired or developed more than 13M square feet. Historically, the bulk of our work has been in the office sector but in recent years we’ve focused on a mix of office, student housing, rental housing and mixed-use development. Over the past year or two, we’ve also been evaluating and pursuing deals in the industrial development space. Our reputation of integrity — doing what we say we’ll do, doing the right thing, and looking after our partners and people has been the key to our success over the last 4 decades.

Can you tell our readers about the most exciting new projects you are working on now?

We are in the middle of two of our largest development projects to date, and that’s always exciting. We are developing a state-of-the-art media production studio in Douglas Country, GA that will soon be the home of Lionsgate Studio Atlanta, owned and operated by Great Point Studios. This project is the anchor development for a mixed-use project called The Trails in Douglas County.

We are also working on a new mixed-use student housing development in Columbia. It will bring 940 much-needed beds to the students of the University of South Carolina, and we are excited to be using precast concrete for the majority of the construction. Using precast greatly reduces our need for on-site labor and machinery, allows for quicker construction, and is a more sustainable option for large buildings.

We are also developing a mixed-use community on Daniel Island in Charleston, South Carolina. Called Nowell Creek Village, when completed it will consist of our ~200k sf, Class A office building, Marshside, 320 luxury apartments being developed by Middle Street Partners, a mix of retail uses, and 50 build-to-rent townhomes that we hope to break ground on in the next several months

Ok, let’s now move to the main part of our interview about commercial real estate. What are the 3 things that most excite you about the industry now? Why?

1. The opportunity to “rethink” the future of office — We are evaluating what’s working and what’s not and looking to other industries, like hospitality, for ideas on how to make the office a workplace tool for those companies that want to stay ahead. We are more constructive than most in the office sector, but we are also cautious and cognizant that the space is undergoing major change.
2. While the market is tough — it offers the right type of real estate companies the opportunity to grow. When the market is red-hot, new participants inevitably spring up. We feel that our long track record, the lessons we have learned over time, and our laser focus on integrity and relationships will set us apart. We believe that longevity and experience are important in this business.
3. The ability to participate in the continued growth of our key Sun Belt markets. This has been ongoing for many years but was significantly accelerated during the post-COVID period. We love our markets throughout the southeast and think it is a very exciting time to be developing and investing there.

What are the 3 things that concern you about it? Why? What should be done to address and alleviate those concerns?

1. Capital Markets — it’s hard to get projects financed these days and opportunities get missed because of a blanket ‘no lending’ idea, rather than evaluating deals as they come.
2. The Headlines Around Office — when there’s so much buzz around how terribly a certain sector is performing then it almost becomes a self-fulfilling prophecy. From our vantage point, in our buildings, people come to work — at least several days per week — and need those spaces. We are just having to think a bit more intentionally about how we create spaces that bring value to our tenants. It would be great to see a more balanced, bottoms-up look at what’s happening in office.
3. Operating Costs — We are seeing marked increases in operating costs across property types. This is especially apparent in the cost to insure properties and property taxes.

How has technology changed the commercial real estate industry, and how do you foresee it shaping the future of the sector?”

Technology has pushed the real estate industry into the 21st century. We are always looking for ways to make our team more productive and efficient, from integrating project management and communications tools to enhancing our collaborative and scaling abilities without sacrificing quality. We are also tiptoeing around AI, experimenting with ChatGPT and offshoots of other large language models (LLMs), and waiting to see how things shake out over the next few years. AI is becoming more a part of everything we do, and we are excited to try out different platforms.

At the property level, we are specifically focused on leveraging technology and the data we collect to run our properties more efficiently. The tech space around building systems changes regularly and we are constantly looking at new ways to operate our buildings.

I am hearing the phrase “Stay alive until 2025” a lot. What is your plan to survive in the current market?

There will be challenges and advantages in every market. We are focused on managing our current investments prudently and efficiently to ensure we deliver the best results for our stakeholders. But in addition to delivering on these investments, we believe there will be a lot of opportunities to grow. We are being patient but opportunistic, continually talking to others in the industry to understand what they are looking at and how we might work together. We are challenging ourselves to grow into other property types and other markets, and we are starting to see interesting deals come across our desks. At its core, the real estate business is all about solving problems to create value, and we think we are strong in that department.

For a young person who would like to eventually make a career in commercial real estate, which skills and subjects do they need to learn?

An intimate relationship with Excel goes a long way. Communication and relationship building. Understanding how the market really works across functions, and understanding the vast array of incentives that drive the large number of individuals and firms that drive our market.

When evaluating deals or opportunities in real estate, what are the most important factors you look for and why? Can you provide some examples?

To name a few: Location, the opportunity to add value and at what cost, the governmental / permitting opportunities and/or challenges, the value the asset has to the community, and the credit and reputations of the other parties involved. We are also typically very focused on understanding what the potential downside risks are in every project.

Prime Locations — Sometimes you need to get creative and see the bigger picture to make an ideal location come to life. At our student housing property in Auburn, Alabama, we had to work with multiple property owners — both residential and commercial, to create the site we built on over a 3-year span. We are right across the street from campus. When you can bring a great location to life with a quality product and great property management service it’s a recipe for success.

Community Value — Nowell Creek Village — We are in the midst of developing a mixed-use community on Daniel Island in South Carolina. We started with reimagining an office building that was already on the site. That piece is done and now we are creating a community experience with a park, community dock, retail and residential options. Daniel Island is growing rapidly, and we know that both our office community and the local community need more thoughtful spaces to enjoy their beautiful natural environment.

Can you share a story with us about the hardest deal you made, that ended successfully for you?

We delivered Portside at Ferry Wharf, a Class A, waterfront office building in Charleston, SC in 2019. It took us a while to pull the deal together with the land seller, and then we had to lease the building during COVID. But with our team’s great work and the building’s great location, we were able to lease the building to 100% during COVID and sell it and make a great return for our investors.

Our 320 West Mag project is the product of acquisitions of parcels from 12 different owners. We closed on the site right before COVID and managed to deliver the project on schedule, despite global supply chain issues and working restrictions. The property has been a resounding success since its opening. We’ve kept an above-average resident retention rate and the property has been the first to lease in the market.

Ok, here is the main question of our interview. Based on your personal experience and success, can you please share “Five Things You Need To Create A Highly Successful Career In The Commercial Real Estate Industry”?

1. Build Relationships — It’s not just about who you know, it’s about if they want to work with you. The importance of being someone others want to work with cannot be overstated. A true relationship requires trust, communication, and time. But once you’ve built a positive relationship with someone the benefits compound.

2. Ask questions, get creative, and bring ideas to the table. At Holder Properties we define this idea in our values as Be Bold and it’s a key element to our team dynamic. Great ideas can come from anywhere and a fresh perceptive is always valued.

3. Do the work! Answer the emails, make the calls, do the research, build the spreadsheets, read and listen and grow.

4. Keep your word and be transparent. You may not always be able to tell someone what they want to hear, but they’ll still respect your integrity.

5. Be ready and willing to adapt and look forward to change. It’s a constant — don’t try to fight it, work with it. Stay on top of the industry and the markets — read, listen, and talk to other professionals, be curious and you’ll find change to be exciting instead of scary. Don’t rely on how things have always been done — there’s always a better, more creative way to do things.

Do you have three things you would advise a new real estate professional to avoid?

1. We always try to talk less and do more. It’s one thing to be proud and excited about your work and another to be boastful.
2. Do not set an expectation you can’t meet. It only takes missing a deadline once or twice before your colleagues or clients start wondering if they can trust you. Yes, things happen and if you’re in a situation that needs explanation (IE. missing a deadline) pick up the phone or go meet somebody in person — text and email can take you only so far.
3. Take your job seriously, but not yourself. Understand that you can’t overpower market forces and that too much ego or self-assuredness can be very dangerous.

What advice would you give to another real estate professional about improving the work culture, building team morale, and helping each employee thrive?

The golden rule applies here. Treat others how you’d like to be treated, and taking that one step further, treat your colleagues how they’d like to be treated.

Respect them as individuals and professionals and push each other to maximize the value each person brings to the business. In a business as complex as commercial real estate, you need to understand what you know, and also what you don’t know. Lean on others with more expertise than you, and approach them respectfully.

How can our readers further follow your work online?

Our website is holderproperties.com. You can follow us on social media on LinkedIn, Instagram, and Twitter.

This was very inspiring. Thank you so much for joining us!