Photo by Dimitri Otis
The composition of the workforce has historically been predominantly older white men , with minority populations rarely seen in prominent commercial brokerage roles . Additionally , women were often found only in administrative , assistant , and property manager positions . Actual day-to-day transactions and top-tier roles seemed to be reserved for men with the lightest of hues . Perhaps these gender and racial disparities are what prompted America ’ s largest trade association , the National Association of REALTORS ® ( NAR ), to take a closer look .
LOOKING AT THE NUMBERS The National Association of REALTORS ® Research Group conducted a sociodemographic survey of members within CRE in 2018 . According to the “ 2018 Commercial Member Profile ,” the median age of NAR ’ s commercial members is 60 years old with roughly 30 percent being 66 years or older . Women , meanwhile , accounted for 30 percent of the commercial member snapshot . The percentage of women in the industry has steadily grown over the past five years , with 62 percent of the women specializing in non-sales-related primary services . Men , interestingly enough , still dominate the primary service of property management , making up 57 percent to women ’ s 43 percent .
While the NAR survey did not address race or the ethnic makeup of its members , its 2017 report , “ Choosing a Career in Real Estate : A Perspective on Gender , Race , and Ethnicity ,” touches briefly on these topics . The study was conducted in part due to several multicultural organizations — such as the National Association of Real Estate Brokers ( NAREB ), the National Association of Hispanic Real Estate Professional ( NAHREP ), and the Asian Real Estate Association of America ( AREAA ) — requesting an analytic look into the race and ethnicity profiles of all NAR members . This report showed that 74 percent of the respondents were white , followed by 13 percent Hispanic / Latino , 7 percent Black / African American , 6 percent Asian / Pacific Islander , and 2 percent American Indian . Respondents could choose more than one category for race . Of the white members ( both men and women ),
ACTIVE MEASURES
12 percent worked in CRE exclusively , while all non-white members combined who exclusively practiced commercial made up 3 percent or less .
There was also a large disparity in the report when comparing men and women who worked exclusively in CRE , with men accounting for 15 percent and only 4 percent women . Keep in mind the 4 percent of women is spread across all CRE service types , such as property management , consulting , leasing , brokerage , etc . Unfortunately , NAR was unable to drill down any further on the gender and / or ethnic makeup of members working in CRE due to the small survey size of CRE professionals . With minority populations making up roughly 28 percent of all real estate professionals , only 3 percent are working exclusively in CRE . Considering these numbers , it ’ s safe to say that minorities and women are underrepresented in the industry . To take it a step further , minority women in brokerage are grossly underrepresented in the industry . This is in spite of the fact that even American Express , in its “ 2019 State of Women-Owned Businesses Report ,” found that Black-owned businesses make up 50 percent of all women-owned business .
CHANGE IS COMING The industry has started to see more women and people of diverse backgrounds emerging in brokerage and executive roles in top retail chains . In 2018 , Marvin Ellison left his role as CEO of J . C . Penney to become the new CEO of Lowe ’ s , making him one of only four Black CEOs of Fortune 500 companies . In 2019 , Javier Rodriguez became the CEO of DaVita , making him one of 16 Hispanics to lead a Fortune 500 company . Earlier this year , Walgreens recruited Starbucks ’ s COO , a Black woman by the name of Roz Brewer , and appointed her CEO of Walgreens Boots Alliance . At RLJ Lodging Trust , Leslie D . Hale is the first and only African American woman to hold the position of CEO of any public real-estate investment trust ( REIT ).
These industry advancements have been a long time coming . According to the U . S . Census Bureau report , “ Demographic Turning Points for the United States : Population Projections for 2020 to 2060 ,” by 2030 , all baby boomers will be well into their golden years at over 65 years of age . Population growth is projected to be primarily driven by immigration and less by increasing birth rates . Individuals of two or more races will make up the fastest growing demographic segment in the country , with whites no longer a majority by year 2045 , resulting in a more ethnically and racially pluralistic landscape .
DIVERSIFIED WORKFORCE While many companies promote diversity on their company website and marketing efforts , fewer are as intentional in following through with efforts necessary for real change . Diversity and inclusivity should be at the forefront of every organization . Different perspectives , experiences , and skills can create a framework for creative thinking and innovative ideas . Ideally , a diversified workforce also increases productivity , which in turn creates more jobs .
All REITs , brokerages , and CRE firms should examine their business operations and ask themselves if they are ethnically and racially diverse . If not , changes should be made immediately . If the answer is yes , the next step is to determine how to continue the advancement of diversity within the organization . Companies can promote diversity and inclusivity in several ways . Organizations can assist those who have been excluded or marginalized by opening the path to management early in their career . Other steps include :
• Creating mentorship programs .
• Implementing diversity-driven hiring and promotion policies .
• Hiring executives from various backgrounds .
• Creating a diversity partner program .
• Allowing time off for cultural and religious holidays .
• Hiring a diversity expert .
CCIM Institute , in 2002 , established the Cultural Diversity Education Program with the explicit goal of aiding in the advancement of underrepresented groups in CRE through professional growth and education . Qualified applicants are awarded discounted rates for all core courses required to achieve the prestigious CCIM designation . To date , more than 1,500 students have participated in the CDEP program and completed one or more courses . Many have continued on to receive their CCIM designation .
Let ’ s face it — this isn ’ t the first article to shed light on the lack of diversity in CRE , and it won ’ t be the last . While change is happening , the pace is painfully slow . But if everyone stays conscious of the issue and committed to the empowerment , development , and advancement of women and minorities in CRE , the industry will better reflect the society we serve . One day , CRE will truly be reflective not of the majority — but of the collective .
Amelia Henry , CCIM Vice President at Logic Commercial
Real Estate in Las Vegas Contact her at ahenry @ logiccre . com .
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