designer1@mandmmultimedia.com

By Gary Tasman Why Diversity, Equity, and Inclusion Matter Commercial property has never been a particularly diverse field. An often-cited 2017 study by Bella Research Group and the Knight Foundation noted that more than 75% of senior executives of commercial real estate firms in the US were white men. Women rarely held a seat at the commercial real estate table–and people of color were practically non-existent among the C-suite. According to the study, just 1.3% of senior executives in the commercial real estate industry were black men. Yet research has repeatedly shown that a diverse workplace not only makes good sense morally, it’s also a good business practice. At Cushman & Wakefield | Commercial Property Southwest Florida (CPSWFL), we strive to develop and foster an inclusive workforce. We believe that diversity, equity and inclusion (DEI) help to create and strengthen a collaborative and productive team. Internationally, Cushman & Wakefield has a reputation for fostering diversity. The company’s DEI initiatives include employee resource groups for team members who are women, Black, Hispanic or Latino, Asian or Pacific Islander, LGBTQ+, or who have disabilities. In 2022 alone, Cushman & Wakefield was listed in the Bloomberg Gender-Equality Index and as a Best Place to Work for LGBTQ+ Equality by the Human Rights Campaign Foundation. DEI: The Moral Case and the Business Case Although many of us think of “diversity” as a term that encompasses just gender or race, inclusivity goes beyond these boundaries. Yes, a diverse workforce employs people of different genders and ethnicities, but also those of different ages, sexual orientations, education levels, cultural backgrounds, physical abilities, religious beliefs and so on. Even more important, each of these individuals must feel valued, engaged and included in a truly diverse workplace. Of course, inclusive teams are important because diversity is an indispensable social value–it is fair and just. However, as humans, we often naturally gravitate towards people who are most like ourselves, both in our social circles as well as in our workplaces. We simply relate better to people with similar life experiences to our own. While this tendency may be natural, this desire to be with others that resemble us can be a hindrance for businesses. A 2020 study by McKinsey & Company noted that the least diverse organizations were significantly more likely to achieve below-average profitability. Why are diverse teams more successful at business? There are a number of reasons. Diversity Improves Creativity and Decision-Making Members of diverse teams hold different points of view and life experiences. When these individuals provide input on a business situation, the ideas they produce will reflect their experiences and backgrounds. This leads to a more nimble, creative and innovative organization. In fact, inclusive companies are nearly double as likely to be change-ready as their less diverse counterparts and are 1.7 times more likely to be innovation leaders among their competition. Diverse Teams Foster a Culture of Engagement Have you ever been somewhere where you just didn’t “fit in”? Perhaps it was a social club, a neighborhood, a school or a workplace. When we don’t feel like we’re a valued part of something, we become less engaged. Companies that foster an inclusive environment, where different perspectives and experiences are valued, will also foster more engaged team members. Research conducted by Gartner indicates that inclusive environments correspond with higher on-the-job effort, employee retention and individual performance. Diversity Helps Us Understand Our Customers Spending time with people unlike ourselves helps to build empathy and stronger communication with one another, which also translates to more empathy and stronger relationships with our customers. Here in Southwest Florida, our residents come from a broad array of geographic and ethnic backgrounds. As commercial property brokers and property managers, we work closely with a wide range of clients: Owners, investors, tenants and vendors. The diversity of our team provides us with the cultural awareness needed to better understand these stakeholders’ wants and needs. Diversity Leads to Better Talent A 2020 study conducted by Glassdoor revealed that 76% of job seekers consider workforce diversity as an important factor when evaluating prospective employers. Additionally, one-third of job seekers said they wouldn’t even apply for a job at a company that had an apparent lack of diversity. In a time when employers are scrambling to attract and retain their team members, a diverse workforce may be just as important of an asset as competitive pay or a great benefits package. Making Progress Towards a More Inclusive Industry While there is still much room for improvement, the commercial real estate industry is making great strides in improving its DEI reputation. The first-ever global DEI survey of the commercial real estate industry notes that 92% of the firms surveyed had some type of DEI initiative in place. We are proud to be one of those companies that is a champion for DEI. At CPSWFL, we are committed to promoting an inclusive, diverse and equitable environment for our team, not only because of the business advantages of DEI but because it’s the right thing to do. A diverse and thriving workforce fosters new perspectives, creativity and better problem solving for employees, partners and shareholders. This sets a positive example for the entire team, which permeates into the community. Are you ready to work with a team that understands you? Contact the Commercial Property Experts at Cushman & Wakefield | Commercial Property Southwest Florida. You can reach us by calling 239-489-3600 or contact-us.

By Gary Tasman For the majority of residents in Southwest Florida, our lives have chiefly returned to our pre-pandemic normal. Offices, restaurants, retail stores, and tourist attractions are buzzing with activity—and in many cases, they’re busier than ever before. It would be a mistake, however, to think that just because things feel “normal” again that nothing has changed. The ways that we both live and work have actually modified tremendously over the last two years, and our commercial property needs are following suit. Because of our rapidly growing population, some businesses have outgrown their capacity. Other workplaces have less need for space because of a shift to remote or semi-remote work. Delivery services and BOPIS (buy online, pick up in-store) models are changing space needs for retailers including grocery stores and restaurants. As businesses try to adapt to this paradigm shift, many will need to renovate their space or rebuild it entirely to remain competitive. But which of those options should they choose? There are a number of questions to consider when debating converting versus demolition. What’s Your Budget? Perhaps the most important consideration when making a decision of this magnitude is budget. With all other things being equal, remodeling a space is typically going to be a more budget-friendly option than a demolition and rebuild. However, a number of variables we’ll discuss later in this article can challenge that notion. When estimating your demolition or conversion budget, make sure you’re projecting carefully. Inflation, supply issues, and labor shortages have made the costs of goods and services difficult to predict for commercial builders. On a recent episode of our podcast, “What’s Developing in Southwest Florida,” Mark Stevens of Stevens Construction Inc. told us that building costs have recently increased by more than 20%. If rebuilding is your preference, but current economic conditions make you wary, consider this: You have much better control of your budget during a remodel. If your cash flow slows due to a change in consumer behavior or a recession, you have the flexibility to pull the plug on some of your “want-to-haves” and focus your budget on your most imperative needs. While you would also have similar flexibility during a rebuilding process, demolition is a bell that can’t be unrung. What’s the Building’s Age and Condition? The full lifespan of a commercial building is considered to be 50-60 years, depending on the location, type of building, materials used, and other variables. According to a 2018 study by the U.S. Energy Information Association, 46% of the commercial buildings in the United States were built before 1980, meaning they’ve either outlasted their projected lifespan or are coming close to it. Here in Southwest Florida, our commercial buildings are younger than the national average, but many are still creeping up on the end of their functional life. Our damp climate and sometimes harsh weather conditions can also negatively impact building conditions, causing foundation issues, roof damage and structural impairments, many of which can go unnoticed for years. Older structures may need significant upgrades to comply with more recent regulations and building codes. Thirty years ago this month, Hurricane Andrew devastated South Florida and swiftly brought substantial changes to the state’s building code. The Americans with Disabilities Act, enacted in 1990, presents additional requirements that older buildings may not possess. Structures more than 30 years old will likely need substantial and costly upgrades to meet compliance during renovation, making conversion potentially as costly and time-consuming as a demo and complete rebuild. On the other hand, some older buildings have “good bones,” or have been through multiple updates over their lifespans, making them more viable options for a remodel. As an example, older warehouses are adaptable for a number of uses because of their open space and large and accommodating foundations. While the age of a building and its condition are two important factors to consider, there are other variables that can help make the decision between converting and demolition. How Long Will You Need It? Chances are, if you’re making the decision about whether to convert or demolish your commercial space, you’ve already begun to make projections about your future needs. While you don’t need to be Nostradamus and predict every possible contingency, you should have a reasonable expectation about how long you plan to stay in your location. It stands to reason that if you only expect to be in the building for a short period, renovation is likely the smarter option. You may even be able to kick the can down the road on some age-related issues if you don’t expect to need the building for a decade or more. However, if you expect your location to be more of a “forever home” for your business or your portfolio, demolition and a complete rebuild make for a stronger long-term investment. There are two reasons for this. First, you should be able to recoup the typically higher costs of the rebuild over time. More importantly, when you do eventually decide it’s time to sell, you’ll be marketing a much newer building with more modern amenities. Is Sustainability a Concern? Many businesses have adopted ESG (Environmental, Social, and Governance) initiatives to guide their strategy, develop policies and procedures, and reveal growth opportunities. Environmental, Social, and Governance are often referred to as corporate sustainability. In essence, “The less CO2 and waste a company produces and the more it cares about peoples’ wellbeing, the more interesting it is for employees, customers and investors,” explains Ariane Husemann, Cushman & Wakefield’s Head of Sustainability for the DACH region. Because there are no uniform global standards for ESG or sustainability, it can be challenging to determine if a structure fits into a company’s ESG framework. Owners should look at the purpose of the building, the company’s goals, and the facility’s suitability for its employees, along with its potential environmental impact. If sustainability is a concern, converting a facility may be the more ESG-friendly option. Existing buildings, says Lutz Schilbach, Cushman & Wakefield’s Design +