Recognizing and seizing opportunities as they present themselves is a hallmark of successful real estate professionals. At the Burnham-Moores Center, we try to practice this dictum, not simply preach it in the classroom. We have been discussing sustainable development and "building green" for quite some time, trying to assess how we should integrate these trends into our curriculum, applied research and programming.
We are fortunate, therefore, to be co-hosting the Oct. 30 conference, "Is It Easy Being Green?," with the city of San Diego, the San Diego Regional Economic Development Corporation and Clean Tech San Diego. While there are quite a few conferences on these topics lately — some for scientists, others for architects — ours is unique. It features an audience of senior real estate executives and civic leaders. It focuses on the politics of building green with Mayor Sanders challenging the audience to get involved in helping the city of San Diego to figure out the best way to integrate green building into the General Plan Update.
The program also features two panels of senior executives with extensive research and business experience in these fields — real estate experience, credible research and hard data. The panels focus on the economics and profit opportunities of building green and sustainable community and economic development. Dr. Norm Miller, our new senior faculty member, will be one of the featured speakers on the "Economics" panel, sharing some of his applied research on costs, rents and values in green buildings.
I am pleased to announce that the "Presenting Sponsor" for the Oct. 30 program is NAIOP, the nationally respected professional trade association with which both Norm and I have enjoyed a strong relationship. That the San Diego Chapter of NAIOP is the presenting sponsor reflects the serious attention that its members locally and nationally are giving to these topics.
Whether one thinks that building green is a passing cloud soon to blow away, a tsunami wave bearing down on real estate, or something in between, you owe it to yourself, your company, your clients and your community to attend this program, hear the facts and decide for yourself. For our part, in addition to our own involvement in the program, all 24 of our Master of Science in Real Estate students will attend and use the knowledge they gain as a springboard for future learning. I hope you will do the same.
Dr. Mark J. Riedy
CBRE CEO Brett White Speaks at Breakfast at the BMC
It was a San Diego homecoming for CB Richard Ellis CEO Brett White, who shared his insights on the importance of integrity, business planning and dressing for success with roughly 200 people at the Sept. 13 Breakfast at the BMC event held in USD's Institute for Peace & Justice.
CB Richard Ellis CEO Brett White chats with one of the 200 guests who attended the Sept. 13 Breakfast at the BMC event.
Policy Advisory Board member Chris Pascale, senior vice president at CB Richard Ellis and a longtime friend of White's, moderated the event which brought Pascale back to his alma mater. Pascale said that he was especially impressed with White's position as the CEO of the world's premier, full-service commercial real estate services firm, given that he remembers the days when the two were "driving around in his Jetta in MiraMar scrimping together quarters to buy gas when the tank was on empty."
White credits most of his success to having a "simple, actionable and measurable" plan, and having the dedication to execute on that plan. "It's really important to plan," White said. "So many people have no plans. Their careers or businesses are run opportunistically."
As evidence of the power of planning, White recounted a chapter from his company's history when in 1992 with the real estate market suffering, then-CEO James J. Didion called together the company's managers and asked for their insight in crafting a plan that would take the company through the next 20 years. "We need to be able to go where clients want to go," Didion said. "We need to invest in all of the business lines that our clients require."
Sitting in the management meeting and listening to Didion's strategy for future success, White recalls thinking: "This guy's out of his mind. We don't have any money to invest now. Forget about a 20-year plan. I'm thinking about a 20-minute plan." Didion's wisdom revealed itself over time as CB Richard Ellis grew to the position of market dominance that it enjoys today. "Every single business decision from 1992 onward met that vision and strategy," White said. "People are surprised at the growth of our company. It hasn't been surprising to us. It was always part of our plan."
White challenged all those in attendance, especially the MSRE students with whom he met privately afterward, to create a plan and execute on it. "You will be amazed, stunned and disappointed when you get out in the business world and see how few companies have a plan," he said.
The other key to the company's success, he said, has been listening carefully to employees who have direct contact with clients. "Every good idea in our company has always come from the field," he said. "The folks I listen to the most are the folks who are on the ground in London, San Diego and Hong Kong."
White said the company takes its position as industry leader seriously and won't settle for complacency. "It's a huge responsibility when you're a leader because people look at you to see what you're doing," he says. "You have an opportunity to do things you can't do at other firms. If we do it here, everyone else will follow." As an example, he cited the company's goal of being carbon neutral by 2010.
White said he takes the responsibility to heart personally, as well. "When I get up in the morning, I never forget that there are 24,000 people who are carrying the CB Richard Ellis card around the world."
USD Names New Dean of School of Business Administration
USD President Mary E. Lyons has named David F. Pyke incoming dean of the University of San Diego's School of Business Administration, effective July 1, 2008.
Pyke is currently the associate dean of the MBA Program at the Tuck School of Business at Dartmouth College, and the Benjamin Ames Kimball Professor of the Science of Administration.
During Pyke's illustrious 16-year career at the Tuck School of Business, he has helped develop Tuck into one of the nation's top business schools. The Wall Street Journal/Harris Interactive Business School Survey named Tuck the No. 1 business school in the nation in September 2007. The school also consistently ranks high in other business school surveys including Forbes, U.S. News & World Report, Financial Times, The Economist and BusinessWeek, which recently ranked USD's undergraduate business program as one of the top 50 programs in the nation.
"The appointment of David Pyke will give our School of Business Administration a huge advantage," says USD President Mary E. Lyons. "We wanted a visionary leader who will guide the school to greater prominence by strengthening current programs and creating new ones that will better serve the corporate community. Pyke's invaluable leadership will undoubtedly strengthen our school."
For his part, Pyke said that he is excited about the opportunities at USD. "For several years, USD's undergraduate and graduate business programs have graduated quality students who are well trained to become highly ethical and socially responsible business leaders. As dean, I will work with faculty, students and other administrators to further develop academic and student service programs that will guide us to become one of the nation's top business schools at the undergraduate and graduate level."
Andrew Allen, interim dean of the USD School of Business, noted that: "Pyke is recognized in academe and business for his extensive work in several areas including: operations management, inventory management, production planning, supply chain management, global manufacturing strategy, and e-commerce. As USD re-examines our course offerings, his experience as an administrator, faculty member and business leader will help to guide our very ambitious business school and further our quest to become one of the nation's best business schools."
Burnham-Moores Center executive director Mark Riedy and the center's new director of academic programs, Norm Miller, met privately with Pyke recently to offer their support for his initiatives. "We were pleased to see David Pyke's energy and enthusiasm, as well as his recognition of the value that the Burnham-Moores Center brings to USD's School of Business Administration," Riedy said.
Oct. 30 Conference to Reveal Nationwide Office Data on the Benefits of Building Green
Norm Miller, Ph.D., director of academic programs at the Burnham-Moores Center for Real Estate, will present the first national, systematic look at the benefits of building green at the center's Oct. 30 sustainable development conference. The conference, "Is It Easy Being Green?," will be co-hosted by the city of San Diego, the San Diego Regional Economic Development Corporation and Clean Tech San Diego.
The preliminary research, presented by Miller, uses CoStar data to assess the rent differentials of office buildings that are LEED-certified or Energy Star-labeled vs. those that do not carry these designations. This is the first study to evaluate the rent and value differentials of energy-efficient buildings at the national level and the first release of the findings to the public.
The presentation will be part of "The Economics of Building Green: Facts, Not Fantasies" panel discussion, which will also feature: Chris Day, vice president, preconstruction and business development, Swinerton Inc.; Fred Maas, president and chief executive officer, Black Mountain Ranch; Michael Gion, site development manager, Intuit Inc.; and Brian Doyle, vice president and San Diego Division manager, William Lyon Homes.
The second panel discussion will address, "The Politics and Profit Opportunities of Building Green and Sustainable Community and Economic Development," and feature panelists: William Anderson, director of planning and community investment, city of San Diego; Martha Krebs, deputy director for research and development, California Energy Commission; Sandra Mendler, senior vice president and sustainable design principal, HOK; Alan Gold, chief executive officer, BioMed Realty Trust; and Matt Reid, vice president, development, Ryan Companies U.S. Inc.
The Honorable Jerry Sanders, mayor of the city of San Diego, will deliver the keynote address and discuss the city's role in encouraging sustainable economic and community development, as well as outline the issues and opportunities related to the city's General
Policy Advisory Board executive committee member Roger Haughton was the recipient of this year's Daniel F. Mulvihill Leadership Award. Created in 2002, the award was designed to recognize those who have demonstrated long-lasting support and leadership of the Burnham-Moores Center's efforts. The award was named for Dan Mulvihill, who chaired the fundraising committee that created the Ernest W. Hahn Chair in Real Estate Finance, which brought executive director Mark Riedy to USD in 1992.
Riedy presented Haughton with the Mulvihill Award at a dinner of executive committee members on Sept. 20. Riedy told those in attendance that Haughton had earned the honor for giving "extraordinarily of his time, treasure and talent." Riedy cited a litany of examples, including: Haughton's hosting, along with his wife Judy, of Burnham-Moores Center students at private dinners; his support of scholarships for many years through PMI, the company from which he recently retired as chairman and CEO; his support of USD's Thanksgiving House Project which benefits a deserving Linda Vista resident each year; his provision of major financial support to the center's operating budget; and his inclusion of several Center faculty and staff members in a Habitat for Humanity build, which is a longstanding passion of his and Judy's.
"I have been very proud to serve on the PAB over the past almost 10 years,"
Haughton said. "Mark Riedy and his team have done an incredible job with the real estate program. To have been a member of the PAB and see the growth and strength of the real estate program has been a real plus to my business career."
Haughton joined PMI in 1985 from Allstate Insurance Co. He was appointed president and chief executive officer of the subsidiary in January 1993. He became director, president and chief executive officer of The PMI Group Inc. when the company went public in April 1995 and was elected chairman of the board in May 1998.
A graduate of the University of California at Santa Barbara, Haughton holds a bachelor's degree in economics. He is past president of the Mortgage Insurance Companies of America, a national trade association, and has served on the Fannie Mae National Advisory Council, as well as the strategic task force of the Mortgage Bankers Association of America. Haughton has received various awards recognizing his contributions to community development, including Fannie Mae's first-ever Community Lending Hero Award and the Bay Area Junior Achievement's Spirit of Achievement award for personal efforts that significantly impact the lives of people within the community.
Alumni Profile MSRE Alum Speaks the "Language" of Real Estate in San Diego-Tijuana Region
Refreshed from a 12-day sailing expedition across the Pacific Ocean and poised with a new diploma on his office wall, Lorenzo Berho is ready to make a difference in the business community of the San Diego-Tijuana border region. Having just graduated in July from the Master of Science in Real Estate (MSRE) program at USD, Berho sees industrial real estate as his ticket to promote the economic development and growth of foreign investment in Mexico. Growing up in Mexico City, Berho has first-hand knowledge of business practices in the country. He believes that great opportunities await those who are willing to adopt more global standards of doing business. "Mexico plays an important role in the global business markets," he says "but there are a lot of issues that need to change and can be improved upon."
2007 MSRE graduate Lorenzo Berho celebrated his completion of the program with a 12-day sailing trip to Hawaii.
Berho and his associates at Corporacion Inmobiliaria Vesta (Vesta), are working hard to make it easier for foreign investment to enter Mexico. Berho is pushing the Mexican business community to adopt more international standards of business, standards he knows are essential for local and international business success. Currently an acquisition and development manager at Vesta, Berho joined the company in 2003 as an asset manager. Vesta, which specializes in industrial real estate, currently employs 16 employees and has operations at three offices throughout Mexico. While the size of the company's operations may be small, Berho feels that the impact of his work is far-reaching. "I really feel that working in industrial real estate in Mexico, you are part of the economic growth of the country," he says. "You are working for the country, for the future of the country."
Part of the challenge of Berho's job is to find foreign investment to fund Vesta's industrial real estate development projects and stimulate the economic growth of Mexico. He also plays a key role in convincing international organizations to bring their manufacturing and distribution operations to Mexico. To do so, he travels extensively throughout the United States and Mexico, managing projects and building relationships with Vesta's partners. Part of the appeal of the MSRE program for Berho was its geographical proximity to Vesta's Tijuana office and the offices of some of Vesta's partner companies in San Diego and the Bay Area.
In addition to the draw of its location, Berho's main reason for joining the MSRE program was to become a better link between American and Mexican business cultures. To create a successful multi-national company, Berho knew he needed to "learn the language" of doing business in the United States. This included learning how to do business in the United States so that business communication and operations between Vesta and other international companies could run more smoothly. Berho knew he needed to bring international business practices to Mexico in order to increase investor confidence in the region. Berho hopes to bring his global perspective to a business community typically ruled by "tradition and consistency" and build Mexico's reputation as a legitimate investment opportunity.
While in the MSRE program, Berho worked part time at Vesta, applying the skills he was learning in the classroom to his day-to-day business activities. Berho's colleagues knew he was in the program, and he says they slowly started coming to him more and more for professional and business advice. They saw he was gaining real estate "experience and skills that not everyone in the company had," and began to rely on him heavily as a resource.
Even though he only recently graduated, Berho "misses the [MSRE] program already." He formed close ties with students not only from his own class, but with students from earlier MSRE classes as well. A small, tight-knit community, Berho says he still sees many of his MSRE classmates, and is working on setting up monthly social events for local alumni to catch up. In late September, Berho and several other MSRE alumni went on a bike trip from Rosarito to Ensenada, Mexico, the type of trip Berho says he loves planning. "I love to bring people to Mexico, to let them see Mexico from a different perspective" he says.
More than 40 students attended the first Real Estate Society meeting of the year on Sept. 27. Students heard presentations on first time home-buying from Robert Weller, Countrywide Lending; Gabe Del Rio, Community Housing Works; and Vicki Monce, San Diego Housing Commission.
Norm Miller, Ph.D., professor and director of academic programs, was interviewed by Scott Horsley, a national correspondent for National Public Radio on the condo auction that occurred in San Diego Sept. 29. The story is scheduled for the "All Things Considered" program.
Miller also was interviewed by Global Real Estate Monitor on appraisals in the commercial real estate market.
Lou Galuppo, director of residential real estate, was interviewed by the California Real Estate Journal on the research project the Burnham-Moores Center has undertaken with the California Energy Commission.
"Is It Easy Being Green?" Conference on building green
· Tuesday, October 30, 2007, 7:30 a.m. to 11:30 a.m., Joan B. Kroc Institute for Peace and Justice.
· Contact Jodi Waterhouse to register, or register online
Continuing Education Graduation with Speaker Stath Karras, CEO of Burnham Real Estate
· starts Tuesday, November 6, 2007 5 p.m.
· Contact Jodi Waterhouse for more information
The Burnham-Moores Center for Real Estate is committed to delivering outstanding education, industry outreach, career placement, and research services to advance socially responsible leadership in real estate.
University of San Diego, 5998 Alcalá Park, San Diego, CA 92110-2492