Interview with Angela Cain

Article Type: Talking heads From: Journal of Corporate Real Estate, Volume 12, Issue 4

Angela Cain is a chief executive officer (CEO) of CoreNet Global, the world’s leading professional association for corporate real estate (CRE) and workplace executives, service providers and economic developers.

Ms Cain was appointed CEO on February 25, 2010, bringing with her a strong combination of association management experience and first-hand knowledge of the real estate industry.

She has more than 14 years of non-profit association management experience at the global, national, state and local level. Her selection as CoreNet Global CEO comes at a critical time for the CRE industry and the association, mainly in terms of the economy’s impact on the property and investment markets, as well as the fast-changing professional and career development needs of CoreNet Global’s 6,500 members worldwide.

Before her appointment as CEO of CoreNet Global, Ms Cain served as the CEO of the Mississippi Association of REALTORS (MAR), the state’s largest professional trade association representing more than 6,000 real estate professionals active in all phases of commercial and residential real estate,brokerage and appraisal.

Prior to joining MAR, she served as the Director of Global Events for CoreNet Global and NACORE International where she managed a $6 million global event operation.

With a proven track record in developing sound fiscal and operational policy,leading in times of crisis, strengthening revenue streams, adding value for dues dollars and fostering staff and volunteer partnerships that work, she was recognized in 2007 as one of Mississippi’s 50 Leading Business Women by the Mississippi Business Journal.

She also was honored by the American Society of Association Executives with the 2007 Associations Advance America Award of Excellence for her association’s significant response to Hurricane Katrina, the largest natural disaster in our nation’s history.

A sixth-generation Floridian, Cain is a graduate of the University of Florida College of Journalism and Communications. She presently serves on the 17-member Finance Committee of the National Association of REALTORS (NAR), the nation’s largest individual member professional association representing 1.2 million members with a $240 million budget.

She also serves as a Chair of NAR’s State CEO Forum and as the Vice Chair of NAR’s REALTOR Relief Foundation, a separate 501(c)3 non-profit organization that has provided millions in housing-related relief funds to victims of 9/11, Hurricane Katrina, the Indian Ocean tsunami and Haitian earthquake.

With 6,500 individual members based in more than 50 local and regional chapters worldwide, CoreNet Global is the only professional association that brings together all facets of the CRE industry to develop global networks empowering members to connect, learn, grow and belong.

Congratulations on your recent appointment as CEO of CoreNet Global, the world’s leading professional association for CRE executives, service providers and economic developers. Can you tell us about your expectations of this role?

I have had a long-running interest in and love of CoreNet Global. Prior to the formation of CoreNet Global in 2002, I oversaw events management for one of the predecessor organizations, NACORE International. When NACORE was integrated with the former IDRC into CoreNet Global, I played a similar role overseeing strategic events globally. A few years later, I was named CEO of the MAR, where I worked until returning to CoreNet Global in April of this year.

What prompted you to take up this position?

It is a great opportunity to lead the CoreNet Global organization when the CRE industry is at such an important point in time, not only in the sense of maximizing our own organization’s potential but also from the view that in challenging economic times, CRE has proven itself to be a valuable strategic asset to an increasing number of multi-national corporations.

It is a commonly held belief that the first three to six months are the most critical months for a senior executive in a new role. Is there anything in particular that you would like to focus on during this time?

One key focus needs to be on better understanding the needs of our members. While the economic picture is improving somewhat, there is still a lot of uncertainty in a period we are calling “business unusual.” It is not enough to gauge what industry professionals need every so often. We need to do that continuously now and be more responsive than ever to helping our members increase their strategic value. Actually, right now I am viewing myself as CoreNet Global’s “Chief Listening Officer.”

In a global context, we have 6,500 members based in more than 50 major cities worldwide, so our network is a direct reflection of the so-called globally networked enterprise which a lot of multinational companies based their business and operating models on. Understanding how our members’ needs are constantly changing within this model is one key.

Another important opportunity is my outreach to all of our members and chapter leaders. For example, the CoreNet Global United Kingdom Chapter,currently under the leadership of Nigel Baker of Microsoft Corporation, is one of the largest and most engaged groups within CoreNet Global.

CoreNet Global Chairman-elect Lee R. Utke stated that “CoreNet Global is at an important point in time, facing critical change and global opportunity.” Can you comment on that statement?

One big advantage is that we’re the only group to convene the entire corporate and commercial industry supply chain. Part of this is we also represent the demand or corporate tenant side of the industry, and corporate spending is beginning to free up while the commercial side rebound won’t likely come for another few years. So we are doing things like offering special benefits to members in transition and beefing up our career web site with more job postings.

We have also responded with leading-edge research, timely case studies,knowledge sharing and innovation, including:

• ways to help adapt quickly and effectively to today’s “new normal”and economy;

• timely findings on critical cost reduction strategies surrounding portfolio consolidation, surplus space, energy management and other ways to have immediate bottom-line impact; and

• forward-looking and industry-bending hypotheses around these and other issues like changing lease accounting standards, global logistics challenges and economic influences on sustainability strategies.

You served MAR for seven years, including five years as CEO. What were your main achievements during your time at MAR?

I left the MAR in strong fiscal condition with a solid value proposition to its membership at a critical time for the residential and commercial real estate markets.

We were able to deliver more value for dues investments through the creative use of technology, including Facebook, LinkedIn, YouTube, Twitter, webinars and the like; community outreach and by raising the profile of the organization both locally and nationally.

Helping the organization survive and thrive in a changing economic picture was perhaps the greatest leave behind

You assumed the role of CEO at MAR a mere four weeks before Hurricane Katrina devastated the Mississippi Gulf Coast in 2005. This changed your role dramatically at a very early stage. How do you feel about this time when you look back now?

The Hurricane Katrina experience was life changing for so many who experienced the true wrath of a natural disaster. It taught me how to prioritize quickly, cut through bureaucracy and red tape, do more with less and focus on what is really important in life.

I was so impressed with the sense of community and camaraderie that was displayed by citizens helping citizens. Is not it a shame that it often takes something disastrous to bring out the best in people?

It has been stated that “the recession may speed the long-term trend of reducing the amount of office space companies need for workers.” Opinions on why this may be the case appear to be divided. What are your thoughts on this?

CoreNet Global research showed well before the recession that the adoption of mobility and other alternative workplace practices (AWS) would result in less demand for office and other commercial space long term.

Subsequent research we have done with partners like Microsoft and Steelcase reflect a stronger adoption of AWS mainly because of cost-cutting pressures in the current context. So, while business drivers like productivity and speed to market often influenced AWS before the recession, cost management is now a bigger factor than before. Either way, though, it will mean less demand for space in an overall sense.

Do you believe that the office market will return to pre-recession levels?

It will probably take some time, maybe at least three years, before the property markets return to “normal” in an occupancy sense. And it will be because of organic growth and acquisitions over time, but it will not happen overnight because of other factors like the unemployment rate.

What impact do you think that the global economic downturn has had on CRE?

The commercial real estate climate is challenged by the unexpected intensity of lack of access to capital and the debt-driven capitalization model. The supply side of our industry is also challenged by higher-than-usual unemployment rates resulting in soft demand for office and other commercial space, decreasing value and lower leasing prices. For our corporate members on the demand side,however, there are unprecedented pricing opportunities right now, which is one plus.

A January 2010 report in FMLink claims that more than half of CRE professionals expect salary increases in 2010. Do you think that this signals a turnaround for the CRE industry?

Our own research with FPL Associates supports the FMLink findings. It is a positive sign indicating a freeing up of corporate spending to a degree at least. But it also reflects that more hiring is beginning to happen within the CRE sector and that’s going to help lift the industry even more in the coming months.

Interactive Data Corp, a market research and analysis firm, has estimated that 75 per cent of the workforce would be mobile workers by 2011 – working outside of the office for 20 per cent of the time. How far do you agree with this?

CoreNet Global defined the concept of telework in the mid-1990s through a predictive research model called Corporate Real Estate 2000. In 2004, our Corporate Real Estate 2010 research initiative forecasted its wider adoption,and now it is all going mainstream. So yes, we agree with the expectation that working out of the office environment is becoming a predominant practice that more companies are encouraging and even enabling.

Younger workers, four generations working together, social media, mobility,sustainability and many other drivers are all converging around alternative work. It is as much about societal change as it is about business productivity,flexibility and profit.

Some researchers allege that “excessive noise and lack of privacy, as well as constant distraction, cause workers to suffer problems such as stress”, and that a “20 per cent drop in productivity is blamed on poorly planned office space.” Also, a UK Office Angels survey revealed that 84 per cent of workers would prefer to work in closed rather than open-plan offices. With this in mind, do open plan offices really work?

It’s difficult to gauge such a question in a broad context. That is because there are so many variables involved. These include the nature of the design when a workplace is transformed. It also includes the footprint of the space being used. Of course, you can’t ignore the actual rate of space utilized. Company culture, even the industry segment of a company, can shape outcomes differently from one employer to another.

The study you are citing makes a good point: well-planned and well-run workplaces are bound to be received more positively by employees and other stakeholders. But this is also why effective change management must accompany any workplace transformation. That is because employees have a voice in well-run change management initiatives.

Many organizations see sustainability issues as becoming increasingly strategic in the world of business. How far do you agree?

It’s become clear that the reputations of companies, their products and services, as well as their practices and policies, are tied directly to how consumers view those companies. Whether or not a company is regarded as being sustainable is a big part of it. It could be environmental or location driven. Or it could be giving back to the community or energy related. It takes on many forms. But it all ties back to social responsibility and stewardship.

With brand reputations, ability to attract and keep talent, and competitive advantage on the line, it is a certainty that sustainable practices will remain a big corporate strategic priority. We are well past the point where anyone could describe it as a passing fad.

Workplace and sustainability are two of the principal issues that most large CRE teams are focused on today. Why should corporate sustainability be at the forefront of the CRE executive’s mind?

Flexible work and AWS are sustainable in themselves. We have shown how mobility reduces the carbon footprint, for example. As mentioned, the most optimal form of sustainability is when it is applied holistically, across the supply chain as one way of accomplishing “going green” on a wide scale with broad impact. Green buildings are a big part of this, yes. But it goes beyond green buildings and extends to another form of the triple bottom-line-encompassing practices, products and policies.

There is no doubt, then, that sustainability should be “top of mind”for all CRE professionals, regardless of the industry type, geography or culture of your company. It starts with the fact that commercial buildings represent 60 per cent of the world’s total carbon footprint. So in a very direct sense,it starts with us. It is a big leadership opportunity, as a CoreNet Global– Rocky Mountain Institute study on energy management showed us a few years ago.

Debbie Hepton