Commercial Real Estate Today: John Krpan of Krpan Group On 5 Things You Need to Create a Highly Successful Career in the Commercial Real Estate Industry Today
An interview with Aron Weiner
Collaboration: Building strong relationships with both the private sector and government entities is essential. Collaborative efforts can lead to significant investments in infrastructure, jobs, and the success of large-scale projects.
The commercial real estate industry is a dynamic and challenging landscape that offers enormous potential for success. However, it requires a unique blend of skills, knowledge, and aptitude to truly excel. How does one establish themselves in such a competitive field? What does it take to consistently rise to the top in commercial real estate? How does one rise above the headwinds that are challenging the commercial real estate industry today? In this interview series, we are talking to commercial real estate professionals, brokers, investors, leaders of Real Estate Firms and Real Estate Investment Trusts (REITs), as well as anyone who’s found significant success in this industry. As part of this series, we had the pleasure of interviewing John Krpan.
After starting his career as a Realtor at the age of eighteen, John Krpan has pursued his passion for real estate across the full spectrum of the industry. Early on, he foresaw the opportunity for growth through vertical integration and partnering with reputable home builders. Today, he leads a multi-faceted real estate company with ongoing developments and investments in Residential Communities, Retail Shopping Centres, Commercial Office Buildings, Industrial Buildings and Unique Financing Structures.
Thank you so much for joining us in this interview series! Before we dive in, our readers would like to learn a bit about your origin story. Can you share with us the ‘backstory’ of how you got into the real estate business?
Certainly. My journey into the real estate business began with a passion for transformative community development. In 2004, I embarked on acquiring land in Hamilton, laying the foundation for what would become the iConnect community we know today. The vision was to create a “best-in-class” complete community that seamlessly integrates retail, employment, residential living, greenspace amenities, and transportation. The risk we took in acquiring land with this vision has paid off, and today, I am proud to lead The Krpan Group, a company committed to evolving with the times and changing the landscape of real estate in the Greater Toronto and Hamilton Area.
Can you tell us about your company and what makes it stand out?
The Krpan Group is a family-owned private real estate company that has been a transformative force in the industry since 1973. What sets us apart is our commitment to visionary leadership and an integrated approach. We’ve expanded into residential, industrial, business, and commercial/retail divisions, managing and developing millions of square feet of prestige business, office, and retail projects. Our portfolio includes over 10,000 homes planned and delivered to families, and our success is marked by strategic collaborations, significant investments in infrastructure, and a dedication to meeting the evolving needs of the community.
Can you tell our readers about the most exciting new projects you are working on now?
One of our most exciting projects is the iConnect Community, a fully integrated, master-designed complete community in Hamilton, ON. Spanning 400 acres, it includes a 170-acre business park, a thriving retail space with anchor tenants like Walmart and Loblaws, and upcoming growth in residential and professional services. The iConnect vision was to create a community where residents can live, work, shop, and play, all within close proximity, offering the best of both urban and suburban living. This unique approach to development and real-estate building exemplifies our commitment to innovative community development, and bringing the best of urban and suburban development to our clients and customers.
Ok, let’s now move to the main part of our interview about commercial real estate. What are the 3 things that most excite you about the industry now? Why?
Firstly, the convergence of technology and real estate excites me. Innovations like smart buildings and communities and data-driven decision-making enhance efficiency and sustainability.
Secondly, the increasing emphasis on mixed-use developments aligns with our commitment to fully integrated communities like the iConnect Community.
Lastly, the industry’s adaptability to changing consumer priorities and urbanization trends allows us to create environments that meet the evolving needs of residents and businesses.
What are the 3 things that concern you about it? Why? What should be done to address and alleviate those concerns?
One concern is the potential impact of economic fluctuations on the real estate market. To address this, we focus on diversified projects to mitigate risks. Additionally, regulatory complexities pose challenges; clear, standardized policies can streamline processes. Finally, sustainability is a growing concern, and industry-wide initiatives promoting green building practices and energy efficiency are crucial.
If you had the power to put in place 3 changes to improve or reform the industry, what would you suggest? Please share stories or examples, if possible.
Firstly, standardizing and streamlining regulatory processes across all levels of government would foster efficiency and clarity. Secondly, promoting sustainable practices through incentives and certifications would benefit both developers and the environment. Lastly, increased collaboration between the public and private sectors can lead to more effective urban planning and infrastructure development and most importantly building homes quicker to keep up with the need.
How has technology changed the commercial real estate industry, and how do you foresee it shaping the future of the sector?”
Technology has brought about significant advancements, from smart building systems to virtual property tours. In the future, we anticipate further integration of AI for predictive analysis, blockchain for secure transactions, and advancements in proptech enhancing tenant experiences and building efficiency.
I am hearing the phrase “Stay alive until 2025” a lot. What is your plan to survive in the current market?
Surviving and thriving in the current market involves staying agile and adapting to emerging trends. For The Krpan Group, this means continuing our commitment to building best-in-class complete communities and housing, innovative and sustainable practices, and community engagement.
For a young person who would like to eventually make a career in commercial real estate, which skills and subjects do they need to learn?
A successful career in commercial real estate requires a blend of technical and interpersonal skills. Strong financial acumen, knowledge of market trends, negotiation skills, and the ability to build relationships are crucial. Additionally, staying updated on industry trends and regulations is essential for informed decision-making.
Do you have three things you would advise a new real estate professional to avoid?
- Lack of Research: Avoid making decisions without thorough market research. Informed decisions based on market trends and data are essential for success.
- Overlooking Regulatory Compliance: Ignoring or underestimating regulatory requirements can lead to delays and complications. Ensure strict adherence to all regulations to avoid legal challenges.
- Neglecting Relationship Building: Building strong relationships with stakeholders, including government officials, investors, and community members, is critical. Neglecting these relationships can hinder project success.
When evaluating deals or opportunities in real estate, what are the most important factors you look for and why? Can you provide some examples?
Key factors include location, market demand, and potential for sustainable growth. For instance, in the iConnect project, the strategic location at Hwy 5 and Hwy 6, with proximity to major highways and airports was a pivotal factor. Understanding the local market dynamics and community needs is equally important in evaluating the long-term success of a project.
Can you share a story with us about the hardest deal you made, that ended successfully for you?
My most challenging deal marked the outset of my real estate journey. In an unexpected turn of events during a boardroom meeting, I overheard a developer mulling over the sale of prime lots to a seasoned builder. Seizing the opportunity, I confidently volunteered, “I’ll buy them,” despite lacking both funds and prior experience in home construction. The developer, somewhat skeptically, issued me a two-week ultimatum to produce a check. Undeterred, I was able to secure the necessary funds within that tight timeframe, and presented the check to him on his desk upon his return, solidifying the successful closure of the deal. This risky move, made with limited resources and no prior expertise, laid the groundwork for my subsequent achievements in the industry. It serves as a testament to the power of calculated risk-taking and the pivotal role it played in shaping my career trajectory.
Based on your personal experience and success, can you please share “Five Things You Need To Create A Highly Successful Career In The Commercial Real Estate Industry”?
- Visionary Leadership: A successful career in real estate requires a forward-thinking approach. Having a vision for transformative projects that align with market trends and community needs is key.
- Adaptability: The industry is dynamic, and adaptability is crucial. Embrace emerging trends, technological advancements, and changes in consumer preferences to stay ahead.
- Collaboration: Building strong relationships with both the private sector and government entities is essential. Collaborative efforts can lead to significant investments in infrastructure, jobs, and the success of large-scale projects.
- Diversification: Diversifying project portfolios helps mitigate risks associated with economic fluctuations. A mix of residential, industrial, office, and commercial/retail projects ensures resilience in a changing market.
- Community Engagement: Understanding and responding to the evolving needs of the community is paramount. Actively engaging with local residents and stakeholders fosters trust and ensures that projects align with the community’s long-term interests.
What advice would you give to another real estate professional about improving the work culture, building team morale, and helping each employee thrive?
Fostering a positive work culture involves clear communication, recognizing achievements, and providing opportunities for professional development. Encourage open dialogue, value diverse perspectives, and prioritize a collaborative and inclusive environment. Invest in your team’s growth, and their success will contribute to the overall success of the organization.
You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)
I would start a movement focused on sustainable and inclusive community development. The goal would be to create environments that prioritize green practices, residential housing, and accessibility within the community for residents to have an area where they can ‘live, work, shop, and play”. This movement would aim to positively impact not only the immediate residents but also the broader community, fostering a sense of connection and well-being.
How can our readers further follow your work online?
Readers can stay updated on The Krpan Group’s projects and initiatives by visiting our official website at https://krpangroup.com/. Additionally, they can follow our iConnect Community Instagram and Facebook pages for project and development updates.
This was very inspiring. Thank you so much for joining us!
