Lorenzo Dominique Berho Carranza ’07 (MSRE) is Filling Big Shoes all the Way to the NYSE
Lorenzo Dominique Berho Carranza ’07 (MSRE) is Filling Big Shoes all the Way to the NYSE
Lorenzo Dominique Berho Carranza ’07 (MSRE) shines as a beacon of success in the industrial real estate sector. Over the past five years, he has orchestrated an extraordinary transformation of Vesta (BMV: VESTA; NYSE: VTMX) as its CEO, a testament to his remarkable 20-year journey within the industry. Lorenzo’s leadership has led the company on a path of ambitious objectives, steering Vesta towards new heights.
Vesta is a fully integrated real estate owner, developer and asset manager of industrial buildings and distribution centers in Mexico. It develops best-in-class industrial real estate properties for the world’s leading companies. As of today, Vesta owns 214 properties located in modern industrial parks in 16 states of Mexico totaling a GLA of 40 million square feet.
Under Lorenzo’s leadership, the company implemented a five-year strategy called “Level-3,” setting incredibly ambitious objectives, which have been achieved before the set time for completion.
“During early 2020, we achieved several important milestones,” says Lorenzo. “We successfully entered the S&P/BMV IPC index and earned significant recognition in the realm of ESG, taking our commitment to sustainability to a whole new level.” Lorenzo's vision and strategy also culminated in securing the company's first-ever public bond financing directly linked to sustainability.
Another of Lorenzo’s most remarkable achievements has been the establishment of a robust and highly successful corporate culture. He has led organizations and boards, not only in the business sphere, but also in the community.
One of the most significant milestones in Lorenzo’s career took place in June 2023 when Vesta announced its initial public offering (IPO) on the New York Stock Exchange (NYSE). Not only did its IPO represent the largest placement of a Mexican company since 2012, but it also represents a significant milestone for Mexico, which now hosts 11 NYSE listed companies. Vesta is also the first Mexican real estate company to be listed on the NYSE. The company began trading on June 30, 2023 under the ticker symbol VTMX.
The NYSE listing marks a significant milestone in Lorenzo’s journey as CEO. For some, it might be seen as a culmination. For him, this is just a launch pad to a new stage. Lorenzo’s business strategy has enabled the company to triple its market capitalization in just five years, transforming the company's strategy from a regional player to a national powerhouse. He has made inroads into the largest markets, successfully penetrating new horizons. Lorenzo's visionary leadership and strategic acumen have not only propelled the company to new heights, but have also reshaped its trajectory in the industry, setting an inspiring example for all.
“My educational experience in San Diego proved invaluable in enabling me to understand market practices and the exacting requirements of institutional investors, thus allowing us to bridge the gap between the most sophisticated and renowned capital markets and our local expertise,” says Lorenzo. “This not only expanded our horizons, but solidified our position as a forward-thinking and globally competitive player in the industry.”
Lorenzo was honored this year by Institutional Investor (II) as the number two CEO in the real estate sector in Latin America for his communication abilities, alongside the company’s investor relations program, which ranked highly for responsiveness and attentiveness with investors and sell-side analysts. Lorenzo has compared his leadership style to a peloton—a group of racing cyclists.
“In a peloton, each member has a specific role and responsibilities that contribute to success,” Lorenzo shared with Institutional Investor (II). “Unique strengths and abilities contribute to collective performance. We achieve our goals through hard work and a team mindset.”
Lorenzo was fortunate to be immersed in real estate from a young age and to have his father, Lorenzo Manuel Berho Corona, and Stephen B. Williams, who, together, founded Vesta in 1998, as strong and dedicated mentors. Lorenzo succeeded his father as CEO of Vesta in 2018.
Lorenzo earned his undergraduate degree in industrial engineering from the Universidad Iberoamericana in Mexico City. While in college, he saw that there was a great opportunity for growth at Vesta, so he decided to pursue only one summer internship in Singapore at a logistics company. He then opted to return to Vesta, a company which he saw was ripe with growth opportunities awaiting him.
Upon completing his undergraduate program in Mexico City, Lorenzo joined USD’s Master of Science in Real Estate (MSRE) program in Fall 2006 and graduated with the 2007 cohort. He wanted to enhance his real estate knowledge and decided that earning his MSRE would be the best way to do it. Lorenzo quickly determined that USD’s MSRE program was the perfect option because it would afford him the ability to simultaneously work at Vesta in Tijuana.
"It just made perfect sense and that’s exactly what I did,” says Lorenzo. “There is no place which is more bicultural or binational than San Diego and Tijuana. It is a great way to understand how the real estate business works in the US from an academic perspective, and then, put it into play through a company that is local [in Mexico] and bi-cultural by design. We [Vesta] attract capital from foreign investors because our clients are multinational companies. USD is all about building the community and San Diego represents a second home to us.”
Long-time friend from USD’s MSRE program and business partner Doug Arthur ’08 (MSRE), president and CEO of SENTRE, shared his sentiments about Lorenzo in this new CEO role.
“It’s really difficult to navigate leadership in a second generation,” says Doug. “The founder of the company is his father who is incredibly talented. He is a uniquely gifted leader. For Lorenzo to be able to follow on that and build the company into something that has the ability to be stronger, different and unique is special. It’s not easy to do that, so I am impressed. Lorenzo had the confidence and the skill to take Vesta to greater heights to navigate a new board, new shareholders, new markets, new strategies, versus just resting on the laurels. His commitment to excellence and his respect for the past, coupled with his willingness to innovate for a new future—the company is stronger for it.”
Doug was in the MSRE cohort immediately following Lorenzo and they have become close friends and business partners over the years. Doug shared how their lives have run parallel in many ways.
“Lorenzo and I have known each other for almost 20 years,” says Doug. “We got to know each other in our mid-20’s. He had just finished the MSRE program and I was just getting ready to start it. We hit it off. We are roughly the same age, have the same passions and have the same commitment to family. We both have great wives as partners and four children each, so it naturally started as a friendship. The founder of our company [SENTRE], Steve Williams, and Lorenzo’s father co-founded Vesta many years ago. It was natural for Steve, on our end, to introduce me to Lorenzo, on their end, given our age and what we were doing in business. Fast forward to 2008, Vesta celebrated its 10th Anniversary. The company went to the Pyrenees for a cycling challenge and I was invited to go. Lorenzo and I bonded personally and professionally during that trip. We have had a parallel journey in both our friendship, our families and our professional relationship.”
Doug is an active shareholder of Vesta. He is also president of Vesta's investment committee and sits on Vesta’s board of directors. “Lorenzo leads by example and he approaches the role confidently,” says Doug. He is a good storyteller. He is balanced and is a strong delegator. He has built a great executive team which speaks to his ability to work well with others.”
Vesta is known for its focus on the Mexican real estate market. Lorenzo shared what makes Mexico and Vesta an attractive investment for a US investor.
“Mexico is a market about growth and Vesta is a growth story,” says Lorenzo. “In order to capture opportunities about growth you have to think about a company that can be part of that growth. Vesta is very well positioned and we have local presence in the most dynamic markets in Mexico, where there is limited supply and there are limited companies with strong leadership and demand is stronger than ever. That’s hard to find in other developed markets and it’s hard to find in other asset classes.”
Vesta has a significant portfolio of industrial and logistics properties which creates a niche investment opportunity for investors. Lorenzo shared what trends he sees shaping this segment of the real estate market in the coming years.
“Geopolitical readjustments are supporting the business opportunities in Mexico,” says Lorenzo. “Companies are defining their global manufacturing footprint which is putting Mexico at the top of the list to establish new operations. Nearshoring just accelerated with the pandemic and the geopolitical tensions in other parts of the world are making companies expand their operations in Mexico at a pace that we have never seen before. We are entering into a new stage where Mexico will be at the forefront for North American competitiveness and a key component for global companies in different sectors from electronic sectors to electric vehicles, medical devices, technology-based companies, aerospace recreational products, logistics and ecommerce.”
Lorenzo defines success as finding the right balance, both personally and professionally.
“Success is finding the right balance in your life,” says Lorenzo. “In order to have the right balance in your life, you’ve got to be close to the right people and do the right thing. And, in terms of balance, it’s not only about the professional career. If you think about your personal life—it's about your partner. In this case, my most important decision is my wife. We have built a great family together. That balance helps me to be successful in my career.”
In his free time, Lorenzo enjoys spending time with his wife, four children, traveling, partaking in sports, and cycling—his passion. He started the “Vesta Challenge” at the company—a race for a cause in which all proceeds support environmental, social and governance (ESG) initiatives for Vesta, which he shared has been recognized by Bloomberg. The annual ‘Vesta Challenge’ brings about 500 cyclists and offers a 100k race, a 60k race and a race for kids. Lorenzo stressed the importance of finding balance in both work and family life.
Lorenzo offers the following advice to both undergraduate and graduate students interested in pursuing a career in real estate or any field for that matter.
“Paraphrasing Steve Jobs, if you want to pick a job, pick something that you love because you’re going to be spending a lot of time doing that, so you better do it and you’re going to do it better if love what you do," says Lorenzo.
Lorenzo pulled out a piece of paper and smiled, as he reflected upon the following biography he had prepared about himself back in 2006 when he commenced the MSRE program.
“Lorenzo has been close to the real estate business for many years. His goal is to become a responsible leader who can fulfil the infrastructure and real estate needs for Mexico. His desire to study at USD for a MSRE degree stem from his interest of improving his business and real estate specific tools. After earning his degree, he plans to work towards building a prosperous Mexico and open new opportunities in real estate projects where both the US and Mexico can work together. Additionally, he is very open to making new friends.”
“Real Estate is incredibly entrepreneurial,” says Lorenzo. “You have to think about how you can scale up the entrepreneurial spirit, you have to think outside the box and think about what’s going on outside of the region and outside the US. Things evolve quickly. Understanding quickly how to be an entrepreneur and an institutional entrepreneur is critical so that you can you scale up more quickly. Reading what I wrote in my bio for the MSRE program—I think I nailed it!”
Lorenzo’s vision for his future and support of his entire family has helped paved the way to his success. Doug Arthur shared his sentiments about the Berho family.
“This is not just a financial success story, these are legitimately great people,” says Doug. “They care about Mexico, they care about the community, they care about one another, they care about their kids and despite the success they have had in building their business, they care about something much bigger. You would feel that if you interviewed any member of the Berho family. They bring a positive energy to everything. We live in this Mega-region and it makes San Diego unique. There are many collaborations possible between the US and Mexico. It’s really important that we continue to highlight this important relationship.”
The achievements by Lorenzo and of Vesta showcase the innovative spirit and unwavering determination of yet another entrepreneur-minded and successful Torero!
Lorenzo Dominique Berho Carranza '07 (MSRE)