Tokenization Of CRE In The U.S. Has Been Slow. The Pandemic Could Speed It Up

This is the second in a series of articles examining the racial diversity of the boards and executive leadership of the biggest companies in commercial real estate. To read the introductory editor’s note for this series, click here. To read Part 1, on REITs, click here. Stay tuned for the next installment on the CRE finance industry.

When George Floyd died May 25, it kicked off a violent and discomforting reckoning on race that roiled the nation.

Americans were once again forced to look into an unpleasant mirror — and the multitrillion-dollar commercial real estate industry was no exception.

U.S. brokerage firms — the grease in the wheels of commercial real estate, employing hundreds of thousands of people and generating tens of billions in annual revenue —issued public statements of support for Black Lives Matter, committing to do more and better and increasing donations to diversity groups within the industry.

Many said little and committed to nothing. Despite these firms’ reach, considerable capital and massive employee rosters, the vast majority of their most powerful decision-makers are White men.

Now, the pressure to diversify at every level of these companies has intensified, as commercial real estate grapples with the residue of discriminatory policies that have kept women and people of color from advancing up the ranks — if they could get in the front door in the first place.

“When you think of the brokerage industry, it really taps into our economy and a range of areas that should represent the general population,” said Jane Stevenson, who is the vice chairman of the board and CEO of services at management consulting firm Korn Ferry.

“It’s definitely a problem that it is a White male-oriented [industry], because it doesn't represent the economy in the way that it needs to,” Stevenson said.

Read the full story here.

In Case You Missed It...

Commercial real estate professionals don’t necessarily oppose eviction moratoriums, so long as they come with some kind of financial aid for landlords, according to a Bisnow survey.

Bisnow surveyed 1,042 commercial real estate professionals between Nov. 10 and Nov. 13 to find out how the industry views the results of the election. Among the questions, participants were asked what they thought about federal and state eviction moratoriums, and they had the ability to select multiple answers.

Half of all survey respondents said eviction moratoriums should be balanced with financial support for landlords, while only 7% said eviction moratoriums should be immediately eliminated.

Read the full story here.

CHICAGO — Whether or not a coronavirus vaccine becomes widely available in 2021, the 2020 economic crisis will damage efforts to create much-needed affordable housing in Chicago. Many of the subsidies that fuel the production and preservation of affordable units in the city come from private developers building market-rate homes, and with that construction slowing down, affordable developers may have to tighten their belts.

“Affordable housing is intertwined with the rest of the industry, and right now there is some faltering in the industry, which we are not immune to,” The Habitat Co. Senior Vice President Charlton Hamer said.

Read the full story here.

NEW YORK — As the coronavirus infection rate inches upward and the temperatures begin to dip, New York City construction is preparing for another pandemic winter. 

In addition to the usual challenges that the New York City construction industry faces during the frigid cold months, this year will be fraught with continuing delays due to a sustained decrease in workforce, the lingering effects of the spring’s shutdown and the ramification of supply chain slowdowns this year.

On top of that, while there has been no indication of a second shutdown yet, the potential for a second wave of the coronavirus and what it will mean for construction looms ominously over the industry. 

Read the full story here.