Young Professionals Must Seek Out Mentors

FOOTHILL RANCH, CA—CRE managers are often too busy to train younger employees, so emerging leaders need to be proactive in developing one or two mentor relationships, Stirling Development's development manager Josh Cox tells GlobeSt.com. We sat down with Cox, a promising young professional in this industry wo was recently recognized with ULI's Emergent Leadership Award in Development, to discuss trends, opportunities and challenges, as well as his advice for other young CRE professionals.

GlobeSt.com: As a young professional in this industry, what are some of the trends you're seeing in commercial development today?

Cox: The industrial sector is highly charged with activity right now. I am focused specifically in the Inland Empire with Stirling Capital's Southern California Logistics Centre (SCLC) and, while always strong, this region is the most active it's been in my 10 years in this industry. We seem to be outpacing peak pre-recession levels. According to CBRE, there were 53 buildings under construction, totaling 19.8 million square feet at the end of the second quarter. Development appetite is being driven by vacancy-rate decreases. Many forward building sales are absorbing the lease-up risk, and investors are beginning to compete with developers for vacant land as everyone chases shrinking returns.

Development quality is heightened as well. As our marketplace becomes more institutionalized, some owners look for longer holds, end users increase in sophistication and building specifications are upgraded. Higher clear heights, office enhancements, more mezzanine, added clerestory glass for natural daylighting and similar improvements are all part of the new class-A industrial package.

GlobeSt.com: How are you finding opportunity and addressing challenges in our company's business and market today?

Cox: We have found incredible opportunity in Southern California's high desert by identifying and selling our market's core advantages to the right tenant audience. For example, manufacturers specifically thrive in the region because a healthy supply of land for large campuses and expansions converges with a skilled regional workforce. A business-friendly Air Quality Management District, pro-growth cities, economic incentives and in-place industrial-grade infrastructure are all positives for their business. The total occupancy costs in the region are lower thanks to savings in land, labor and utilities and have brought more than 400 manufacturers to the high desert. Understanding and catering to this audience has helped us ensure the long-term success of SCLC amidst competing projects and regions.

GlobeSt.com: How do you view industry opportunities and challenges for you and your peers?

Cox: With a really hot market, there are more layers and players in the industry creating opportunities to jump into different aspects of the business. There are also many great networking and professional-enrichment programs available to young members of the industry. Participating in these has really helped me grow my knowledge base and strong industry peer relationships while allowing me to give back to the industry, which I feel is important. Conversely, I have found that there is a gap in the industry's offerings for the younger generation and those aimed at seasoned leaders. Making the jump from “young leader” to leader thus isn't spelled out, which can make the process fun, but also a bit convoluted. Additionally, managers are often too busy to train younger employees, so we need to proactively seek out one or two mentor relationships.

GlobeSt.com: What advice would you give young professionals starting out in this business who want to make it a long-term career?

Cox: Don't skip Real Estate 101. Learn, learn and learn more. Always be learning. In other words, say “yes” (within reason) to everything you can.

GlobeSt.com: What else should our readers know about your views on the industry?

Cox: From my perspective, only time will tell how much new run there is in this positive cycle. That said, I don't care what baseball inning we are in … I want to know what minute of the soccer match it is.