The Power of Being A Woman in Commercial Real Estate
By Jodi Pulice, Founder and President JRT Realty Group, Inc.
It has been more than 20 years since the term "glass ceiling" was first introduced into pop culture. Initial use of this term is credited to a March 1986 Wall Street Journal article by two male reporters. In reality, it was used two years earlier by respected female magazine editor, Gay Bryant, in an Adweek article.
By definition, the term glass ceiling refers to the condition in which women become limited in how far they can advance within an organization or profession. As a commercial real estate broker for more than 25 years, I entered the industry long before this expression was coined. However, it most certainly existed.
Fortunately, our industry has evolved. Today, new, rewarding career possibilities for women are abound in commercial real estate. From development and construction, appraisal and advisory services, to agent/broker, property management and real estate entrepreneur, creative and talented women are enjoying unprecedented levels of success because they possess the right mix of interpersonal and analytical skills, negotiating prowess and a capitalist spirit.
Industry giants also are committed to advancing opportunities for women, both internally and externally, through involvement in educational programming and corporate initiatives. These efforts support female brokers seeking leadership experience and enable them to demonstrate these capabilities in every facet of their business. At Cushman & Wakefield, the largest privately held global real estate services provider, these practices are evident in virtually every facet of its business. Examples include the firm's sponsorship of the Real Estate Associate Program (REAP), an industry-supported educational program, and the Annual Global Diversity Summit held in Atlanta, Ga. Both programs were established to address the shortfall of talented female and minority candidates within the commercial real estate profession.
Opportunities for women in commercial real estate also are gaining momentum thanks to corporate supplier diversity. Ten years ago, leading corporations and government agencies were just beginning to adopt supplier diversity initiatives by awarding key real estate projects to certified minority- and women-owned business enterprises, commonly referred to as M/WBEs. It was at this time that JRT Realty Group, Inc. was established as a woman-owned and certified business in every sense of the word.
Once limited to government contracts, these initiatives have evolved into social responsibility programs, with multi-billion dollar procurement budgets, endorsed and implemented by EVERY Fortune 500 Company. Active players include Citibank, Time Warner, AT&T, Verizon, Lehman Brothers, New York Life and Prudential, to name a few. Their goal - to expand the supplier base by awarding contracts to those firms certified, owned and operated by women and minorities. Simply put, America's leading corporations now require their business units to collaborate with suppliers who reflect their own consumer and employee population - both of which, coincidentally, are mostly dominated by women.
Fortune 500 Diversity Benchmarks Define Commercial Real Estate Procurement.
As evidence of this trend, one of the largest telecommunications companies in the world spent $24 billion as part of its corporate diversity program during the past 10 years. In 2006, the communications giant dispersed $15.5 billion in contract awards to minority-and women-owned suppliers. These contracts accounted for 13 percent of the total procurement base. The corporation's current goal is to procure 21.5 percent, or almost one-fourth, of its total procurement contracts - including commercial real estate assignments - from diversity-owned enterprises. In terms of dollars, projections estimate this amount will surpass $8 billion annually.
This is why male brokers can no longer subscribe to the philosophy that they control 100 percent of a given client's business. In reality, they are handling only 75 to 80 percent of the business. Just over 20 percent is allocated for involvement by minority- and women-owned businesses. Furthermore, mandates require DIRECT involvement by fully certified firms at the negotiating table and in carrying out the contracted services. As a result, women and minorities now have a dominant presence at meetings with leading corporate decision-makers.
Large commercial real estate firms are ineligible for M/WBE contracts because they are not 51 percent owned by a minority or woman. As a result, industry visionaries like Cushman & Wakefield have expanded their commitment to women and minorities by forging strategic alliances with certified M/WBEs. Cushman & Wakefield, JRT's alliance partner, was the first to do so. In short, JRT Realty is a value-add for Cushman & Wakefield. Together, JRT and Cushman & Wakefield pool their expertise, market knowledge and industry relationships to identify and respond to requests for M/WBE involvement.
Just last year, the JRT/Cushman & Wakefield alliance brokered 140-plus M/WBE deals with more than 150 Cushman & Wakefield brokers nationwide. This accounted for over 2.2 million square feet, increasing the total portfolio in the past three years by more than 400%.Recent joint assignments were handled on behalf of TIAA-CREF, United Nations Federal Credit Union, New York Life, Prudential and Principal Life Insurance.
For women, and minorities, the time for expanding your role in commercial real estate is now. There are so many opportunities to break through the glass ceiling. Women cannot hesitate in asking for more or negotiating more aggressively on their own behalf. While gender-mixed teams should be a leadership priority, women must serve as an internal catalyst if they are non-existent in their own work environment.
Most importantly, we have to be supportive of other women. We are empowering our daughters -and successors -with the knowledge that their true strength can be found in simply being a woman.
