Weekend Interview: Swenson Builders CEO Case Swenson

This series gets into the heads of the decision-makers of CRE, the people shaping the industry by setting investment strategy, workplace design, diversity initiatives and more.

Case Swenson is president and CEO of Swenson Builders, a fourth-generation design-develop-build business based in Northern California. He joined the family firm in 2013 after managing his own construction company, Swenson Development & Construction, for more than two decades.

Swenson is a believer in working from the office, the possibilities of the metaverse for retail and leaning on cash when the economy goes bad. What he isn't so optimistic about? Google ever building in San Jose, 13 years of rumors be damned.

The following is lightly edited for style and clarity.

Bisnow: Baron Rothschild once said the “time to buy is when there’s blood in the streets.” Where is the blood today?

Swenson: When banks lack confidence in the future, they are unlikely to lend. Rising interest rates, increased equity requirements and recession fears will create “blood on the street” — at which time cash will be king.

Bisnow: What is your most controversial CRE opinion and why are you right about it? 

Swenson: I have always been skeptical of Google coming to San Jose. It is not a popular sentiment, but a shovel in the ground by Google is the only thing that will make me a believer. I guess the reason that I feel right is because since the first whispers in 2009, still no shovel.

Bisnow: If you weren’t in real estate, what path would your career have taken?

Swenson: To quote Luke Combs:

“I’d have a Friday night crowd in the palm of my hand,

Cup of brown liquor, couple buddies in a band….

At the Grand Ole Opry or a show in some no-name town,

I’d still be doing this if I wasn’t doing this”

I am in the right path, but my alter ego wants to be a rock star.

Bisnow: If you could make one change to the industry, what would it be?

Swenson: If I had a magic wand, it would be to have equity be more like friends and family. Having flexibility and trust when putting together the equity side of the capital stack would make balancing the risks and rewards tremendously more efficient.

Bisnow: What is one thing you would do differently from early in your career?

Swenson: I would not make any significant change, as my mistakes have proven to be valuable as I go further on in my career.

Bisnow: As a leader, how do you decide who is worth mentoring and who is simply not a good fit?

Swenson: We had an architect in our company early on that worked previously with Frank Lloyd Wright. He actually paid Frank Lloyd Wright for one year to have the privilege to be his intern. That says a lot about the value of mentorship. A person that works hard and appreciates its value is worth mentoring.  

Bisnow: What are your thoughts on the metaverse? Does it have any relevance for CRE?

Swenson: It is intriguing that people would pay high value for a parcel in the metaverse. In the retail industry, it can bring the shopping experience from a website to a 3D artificial intelligence experience. A virtual shopper can be greeted by an avatar and purchase a pair of shoes and have it on their doorsteps in a matter of days.

In CRE, allowing developers/builders or even potential buyers to sit in a room and virtually walk the halls before a project is even built is exciting stuff.

Bisnow: What do you see as the lasting impacts of the pandemic on CRE? 

Swenson: Contrary to the metaverse, the boots-on-the-ground type of businesses are essential to the economy, but as time goes by, they have less of a chance to compete with the Amazons of the world. 

In the workplace, some of those we are trying to hire are only willing to come into the office two or three days a week. I feel that being in the office and in-person collaboration are critical to our success. We believe in the value of shaking hands on a deal, looking someone in the eye and creating tangible relationships.

Bisnow: As you know, there is a massive conversation underway regarding advancing more people of color and women into the C-suite. What are you doing to address those voices and that movement within your own organization?

Swenson: Fairness is a practice we adhere to, and promotion in the workplace is based on merit and merit alone.

Bisnow: So, this is the weekend interview. What’s your typical weekend routine?

Swenson: Hanging with my family and doing some sort of pentathlon every day: some combination of swim, bike, golf, pickleball and hike while hopefully sneaking in a nap to recharge the batteries.