Real Estate Gold Rush

As a recruiter I’m exposed to many markets, product types, personalities and cultures. We all know Austin Texas is the progressive Mecca of Development. Young and seasoned professionals alike are flocking in droves. Candidly, it’s a great place to be. What other city could possibly be on the same level of growth? Well, it’s not a just a city! It’s the 3rd largest and most populous state in the Nation; California. The West Coast, in general, possesses a progressive forward thinking mentality. Ultra-luxury goods and need for high-amenities has long been the norm in the West Coast. Recently, I had the opportunity of recruiting and placing a head of construction and development for a several billion dollar real estate fund. Between acquisition /rehab and new development that group alone has $500 million under construction, just in SoCal.

I’m not sure if the real-estate industry is simply overlooked on the West Coast or it’s a well kept secret hidden by the people and its real-estate tycoons of the West. My guess is the latter. It occurred to me the other day that most development /construction companies in California generally stay relatively secluded to the West Coast market. Very rarely do you see outside developers penetrating this market as well. Is this because of the stringent zoning regulations or are local companies land-banking and keeping pay dirt for themselves?

One thing is certain, development is alive and well on the West Coast. Traditionally, real-estate goes through a predictable cycle. Old school thinking would put the current market at the beginning of the “4th quarter” to quote a sports analogy. I have a hunch this market has its eyes set on overtime. There’s no reason for real-estate companies to be hiring executive level construction and development positions this late in the cycle, right? You would think there would be an increase in say, Asset Managers? Wrong! This past quarter we have seen a surge in demand for executive level development positions. To piggy-back off of that trend, I recently placed a President of Construction in the West – all for new product that is still early in the design phase and a huge pipeline still in the early stages of development. This group historically has developed throughout California for several decades. They decided to bring construction in house and capitalize on the high demand for reputable GC’s by pure development companies.

Long story short, the West Coast is alive and well. If you are a professional practicing real estate there – enjoy! If you want to recreate the “Gold Rush of ‘49” – head West!

-Ian

Q4 2014: Corporate & Personal Growth Analysis

What makes you different?

Through the course of each week I speak with a great number of executives in the Affordable Housing Industry. Development, Management, Lenders and Syndicators alike are all stating the same thing – “We are growing”. It’s true, many organizations and the people within them are growing; growing the organization’s geographical footprint, growing strategically by way of opportunistic deals or hires. Many refer to this as “Planned Growth”.

Often, the point that I offer is that everyone can’t grow because the balloon can only hold so much air before it will burst. So what allows some groups to grow as opposed to others? The answer is not always simple, but there is always an answer. Many times, the personal drive that fuels growth is hidden in catchy words like – luck, effort, strong work ethic, determination and even being opportunistic. In reality, it is a combination of each of those things as well as talent. Talent in the form of good people working for a good organization (with others) that possess strong work ethic, great effort, determination, being opportunistic and of course some luck along the way.

As an executive recruiter, focused on both the high-growth affordable housing industry and the people that make it spin on its axis each day, my job is to identify the companies that do this well and find ways to help them do it better. Conversely, when I find companies that are unable, for whatever reason, to not grow or succeed – my job then becomes one of helping the people there who are capable of growing get introduced to other companies that can indeed facilitate their personal growth.

The Fourth Quarter is always a great time for everyone, CEO’s and Board Members to take stock of corporate growth and success and likewise, mid and senior level employees to assess their career growth. Just as organizations take-on careful review and planning, one should also pull out paper and do this for your career.

I welcome the opportunity to discuss further by phone either angle mentioned above (corporate or personal). Further, I will be at the AHF Live Conference in Chicago, November 19-21, 2014 and would be happy to further the conversation in person.

- Butch

Altruistic Recruiting 101

 

I’ve been at executive recruiting for about a year and a half now.  During this period of time, I’ve had the pleasure of working with and placing a number of executives across the real estate management and investment space.  The experience has been unique in that I interact daily with individuals that I have little in common, if any at all, technical work experience. 

However, what makes a successful recruiter and what I pride myself on improving upon daily, is not necessarily being able to “talk shop” with my candidates or boast of great industry knowledge, but rather build a relationship in an effort get to know them and subsequently help them on a personal level.

I feel too many recruiters place more weight on being able to talk shop versus doing what’s in the best interest of a candidate – finding how to help them.  What we do is special.  We find out the deepest reasons behind why an individual would make a major career change and possibly relocate a family.  Here are a few things to look for the next time that you considering to return a call from a recruiter:

•  “If they’re telling, they’re selling you.”  If a recruiter’s M.O. is reading you a job description during their pitch call to see if you think it sounds attractive or compelling, they’re doing you a disservice.  It is not my role to sell you on a position that will solve your problems rather to first understand why you’d even be open to making a change.  This can be for a myriad of reasons – ranging from lack of opportunity for growth which might quell a candidates chance to provide for a childs’ college education in the not so distant future.

• Question their process.  Many different recruiters go about their business in different ways.  Some harvest resumes then go out into the market and advertise them to clients that they’d love to work with.  Some contingency recruiters are loosely committed to the search they pitch you on and may merely be trying to shove you through a rapidly closing window of opportunity to fill a search that three other contingent firms are also vying to fill.  On the contrary, retained firms are typically paid an up-front fee to go out into the market and find the perfect candidate for their client and stay committed to that task until the right candidate for the job is found (this is a mutual agreement by employer and candidate).

• Understand what saying “yes” means.  Submitting a resume will probably take up the least of your time once you engage in a recruiter’s process.  If they do not clearly outline the steps of the interviewing/hiring process, something’s probably awry. 

In conclusion, I’d recommend the next time that you’re contacted by a recruiter, speak to them.  Explore where else your talents may be better suited.  We’re in a hot market and there are a ton of opportunities to get ahead in your career and personal goals.  So I challenge you, the next time a recruiter calls, ask questions!  Find out if they’re legitimate in their intentions to work with you or if they’re merely looking to market you unbeknownst to yourself in order for them to land a potential client.

Cheers,
Brian Blunkosky
Executive Recruiter, ibr Search