Going into 2020, CREWBaltimore had a full program lineup that included Construction Tour Happy Hours, Beacon Awards, Luncheons, and various volunteer events. When the pandemic began to take effect, the chapter knew their previously full schedule was going to have some big changes.

When faced with the challenges of rescheduled and canceled events, CREWBaltimore found a way to take advantage of the new normal by pivoting their event structure from in person to virtual. Starting in March, CREWBaltimore has been conducting weekly “Conversations Over Coffee” for members to attend over Zoom, allowing different members and guest speakers to discuss a variety of topics, which allowed the chapter as a whole to stay connected.

Over the course of the past few months, members have been invited to join webinars that cover topics ranging from leasing trends, commercial cleaning, building operations, financial impact, interior design, and much more. Each panel, hosted by CREWBaltimore President, Kristen Schrader, included members that had the opportunity to discuss the different effects COVID-19 has had in their respective industries.

With these calls, members are able to attend more “events” in the past few months than they would throughout the entire year. It gives members the opportunity to meet other members they might not have had the chance to meet at the in-person events. Although CREWBaltimore has been greatly affected by COVID-19, the Conversations Over Coffee has been a silver lining and allows the chapter as a whole to still be together while apart.

Please visit the CREWBaltimore Youtube channel to view recordings of all Conversations Over Coffee we’ve had so far!

On Wednesday, July 15, 2020, CREWBaltimore hosted a virtual panel discussion on Feds, Meds, and Eds. The panelists that were featured were Steve Ramaley of Miles & Stockbridge and a member of their Government Practice, Emily Perl, Associate Vice President of Goucher College, and Adam Kleeman a partner at Cohn Reznick currently focusing on the Cannabis Industry.

Steve Ramaley led the discussion specifically regarding how COVID has changed the trajectory of Congress and Government in general. As Congress is poised to introduce another stimulus package, other safeguards and changes were made to the FLEX and CARES Act including audits on those that took assistance. That said, Government Contractors in general have not been affected as much as other industries. Government spending is up, current funding is being repurposed, and contractors are typically not defaulting on leases. There are a number of programs designed to help government contractors, including section 3610 of the CARES Act that allows for the government to continue to pay contractors employees even if they aren’t doing anything to maintain a “ready to go” status. However, those funds do come with red tape that means many contractors will not qualify. Overall GSA commercial real estate is a bright spot for landlords as these types of offices likely will not convert to a work from home model.

 As far as the state of Higher Education, Emily Perl described it in one word. Chaos. As the second main source of income for most institutions is room and board, there is a real concern on the loss of income due to campuses choosing to go virtual for the near future. Institutions are being forced to balance their financial health versus the physical health of their students and staff. For those considering a hybrid in-person/virtual model, many institutions are considering changing their academic calendar – removing previously scheduled breaks and holidays in order to end the semester at Thanksgiving. Doing this would eliminate the risk of students traveling around the country just to return a week later. While COVID-19 is having a huge financial impact on higher education, small, private institutions are at the most risk. The threat to enrollment is not totally to blame on COVID-19, as there has been a declining rate of (students?) 18 years going to college in the past few years. For the time being, most capital projects are on hold, but the long-term outlook for higher education is still positive.

As it relates to Meds, the Cannabis industry has gained enormous momentum over the past several years and entered many metropolitan markets. However, many Cannabis growers have run into road blocks as their business may be legal locally, but not federally thus creating challenges for leasing and banking. For example, Cannabis growers cannot enter into a lease with a landlord that has debt on their books. As a result, the industry has shifted towards Cannabis REITS of mostly larger growth facilities, resulting in sale/leasebacks becoming a popular way to acquire their needed space. Overall, COVID-19 has not slowed the momentum of the Cannabis business and in fact has bolstered it. Arguments are being made to ease restrictions on the industry by legalizing it federally and thereby giving the government the opportunity to tax it during these difficult economic times. 

Overall, the Feds/Meds/Eds industry dynamics are shifting as a result of COVID-19 and an ever-changing cultural view of the world. While Eds appears to sustain the worst of effects of the pandemic overall, the outlook stays positive as the need for higher education will not disappear, just change. Feds has seen little impact to their industry to date, however as more measures and safeguards are put into place the resilience of some contractors could come into question. Cannabis shocked the Meds world a decade ago, but it is becoming more accepted the main stream medical community. If federal restrictions were eased, there could be an opportunity for both Feds and Meds to gain financially, but to date that remains to be seen.

CREWBaltimore 2020 Women Business Owners

On January 21st, CREWBaltimore hosted the Women of Influence luncheon featuring Shina Parker, CEO & Founder of Integrity Title & Escrow, Karen Singer, Esq., Principal at KMS Partners, Colleen Vacelet, President of Intreegue Design, and moderated by Theresa Tsamoutalis, President & Principal of Allsafe Elevator Inspections. Topics of discussion ranged from juggling the work/home balance to why these women decided to strike out on their own.

To understand why these women are so exceptional, it helps to understand the demographics of the workforce and CRE in particular. The numbers of women and men first starting out in the workforce at the beginning of their careers are fairly equal, 75% are men and 74% are women. By mid-career, men outpace women in managerial roles 47% to 40%. By late-career those numbers are even higher, with 57% of men occupying managerial jobs and only 41% of women in the same position. Women represent 35% of the workforce in the US and only occupy 9% of the C-Suite positions. In commercial real estate specifically, there is a 23.3% pay gap in starting salaries between men and women. So how did these women navigate the industry to become leaders?

Their reasons for striking out on their own came from very different places. As a landscape architect, Vacelet found that she had hit the pay ceiling but worked diligently to gain experience and knowledge. That hard work eventually paid off and enabled her to start her own company and acquire her previous employer. When Parker was told to “know her place” after she was responsible for bringing in more than half of her previous employer’s business, she knew she had no other option than to start her own company. Twenty-one years later, she now owns the number one women-owned minority title company in the State of Maryland. Singer found herself in a different situation when corporate restructuring resulted in her being laid off with no plan B. Over the next several months she continued to network before starting her own firm working with developers in the market.

So how did they succeed in an industry that is statistically challenging for women? For Singer, she believes luck doesn’t just happen. Her advice is to put yourself out in the universe and lay the foundation of who you want to associate with. Continue to ask for feedback and take the time to listen. Vacelet believes the most important part to success is having a clear vision. Success isn’t what you want to be, it’s who you want to be. For Parker, success is the result of how you use the opportunities you have.

Closing words of advice from the panel were: Don’t be afraid to toot your own horn. Ask for feedback and listen; be teachable. Be a mentor, don’t overlook the associate or the assistant. After decades of progress, the demographics of the industry look the same. Push for diversity wherever possible.

CREWBaltimore hosted another successful luncheon on the State of Retail at McCormick & Schmick’s on July 16, 2019. CREWBaltimore member Dawn Sangley of Spry Design moderated the panel, whose members consisted of Arsh Mirmiran of Caves Valley Partners, Judy Neff of Checkerspot Brewing Company, Alex Smith of Atlas Restaurant Group, and Claudia Towles of aMuse Toys, all companies local to the Baltimore area.

Sangley started off the conversation by talking about how urban design and commercial real estate need retail. While offices energize the city during the day and housing strengthens the city at night, retail helps sustain both and activates the streetscape. While some retail is struggling, there are brick and mortar retail locations that are thriving. These businesses are keystones in our communities, creating a sense of place and generating interest. So how are our panelist’s companies attracting consumers given the competition from e-commerce? For all these companies, it’s about providing something that customers can’t get online. For Neff, they must have events, like live music, that draw people in. Being dog-friendly also helps draw a crowd. Smith concurred, saying that “people are going out for more than just food, they are going for an experience.” For Towles, the challenge came with how her retail toy store could compete against the convenience of online retailers for busy parents, as 39% of online shoppers say speed is the largest factor for choosing to purchase online over at a brick and mortar location. She said that since they have a lot of STEM toys, they have learning workshops for either just the child or the parent and the child to learn together, something not available online.

As far as development, Mirmiran has had success with “taking stable areas and pushing their edges.” This helps stabilize the city and promote future growth. There is a movement toward more urban development with “many people [who] still prefer living in the urban environment,” he said. In fact, Sangley mentioned that 56% of online shoppers still appreciate the in-person experience over digital retailers. Which might be why e-commerce, like Bonobos, Warby Parker, and Amazon have all opened brick and mortar locations. To address security concerns with some of those “urban edge” locations, Smith recommends hiring a private security company and having a presence on the ground. Valet service is usually a good way to ensure your customers feel safe and provides for a more leisurely experience.

How do each of these companies reduce their impact on the environment and give back to the community? For the local brewery, Checkerspot Brewing Company recycles containers and their spent grain goes to local cattle farmers. Additionally, they also use local fruit in some of their beer and host dog-focused events for BARCS. Smith said Atlas Restaurant Group also works with local farmers, donates to the Chesapeake Bay Foundation, and takes employees to do a yearly cleanup event.

Each of these companies also utilizes technology to enhance the shopping experience. For aMuse Toys, they have a rewards program that tracks purchases and gives recommendations to the consumer based on those purchases. Similarly, Atlas Restaurant Group uses analytics that tracks guest visits and orders. These analytics help the wait staff to give better recommendations and adds a special experience for the guest that they might not have with a food delivery service. Smith said they have also found that the personal outreach, like a card or a call back, ensures that the guest has a positive interaction with the restaurant. Neff agreed, saying that the staff at Checkerspot make concerted efforts to interact with guests. And some of that interaction is online, as they are very active on social media and use that as their promotional platform. Studies show that 40% of business owners are using social media to generate sales, and that 23% of consumers say that recommendations on social media influence their buying decisions.

The brick and mortar retail experience is not disappearing. As long as companies are adaptable and willing to put in the extra effort and innovation to draw in customers, they will likely see a return on their investment.

To see more event photos, click here.

Over 85 CREW members and guests attended the 2019 Women of Influence Luncheon at the renovated Center Club on January 8th. Following a warm welcome and 2019 preview by CREWBaltimore President Nikkia Fitch of RS&F, moderator Karen Pecoraro (ATC Group Services) facilitated a panel-format discussion around pay inequality and other barriers to female advancement in the CRE industry. This central theme was inspired by the 2018 CREW Network White Paper titled Achieving Pay Parity in Commercial Real Estate (read here).

Panelists Christine Espenshade (JLL), Michele Cohen (Miles & Stockbridge), Laura Penza (Penza Bailey Architects) and Ruth Hoang (Howard Hughes Development) shared tips, challenges and anecdotes about their careers and successes in commercial real estate. Two points of advice repeatedly emerged throughout the discussion.

First, speak up for yourself. “No one will be a better advocate for you than you” said Ruth Hoang. Michele Cohen added that coworkers and supervisors are not “mind readers” and should not be expected to just make things happen on your behalf. Instead, women need to make their case when asking for a raise or promotion. “Track, catalogue, capture your accomplishments” Karen Pecoraro advised. That makes it much easier to recount your contributions when annual review time rolls around, since trying to recall a year’s worth of deals or sales can be difficult. The panel also recommended staying current on reports and publications that provide compensation data for your profession, noting that location can play a big role.

When asked how to avoid the pay gap over the course of a career, advice from the panel varied. “Stay flexible and leave yourself some latitude to do new things” offered Ruth Hoang, referring to the ways in which her willingness to work in new markets and with new clients spurred her progress at Howard Hughes. “Be willing to reinvent yourself” said Christine Espenshade, “especially if you’ve left the workforce for a period of time.” The panel agreed on the importance of staying relevant and connected through networking events and organizations such as CREW.

As a regular participant in annual compensation reviews at Miles and Stockbridge, Michele Cohen noted “our male counterparts self-advocate better more often.” Hoang then stressed the importance of asking for a raise each year and to not settle for a 2-3% cost of living increase, which accentuates the gap. “Be mindful of the math” she added.

The second word of advice from the panel: create your own work/life “harmony”. From choosing your life partner to third-party help, the group emphasized the importance of a support network and agreed that the term “work/life balance” can be misleading. “As women, we think we are the only ones who can handle the pediatrician appointment or stay home with a sick child” Christine Espenshade joked, then added “we are inclined to take on the lion’s share of the duties at home.” In reality, we can all use a little help from the outside to make our home life and career as fulfilling as possible. “Find your thing, find your power, and make it work,” said Laura Penza.