Commercial Real Estate Today: Michael Silver Of Vestian On 5 Things You Need to Create a Highly Successful Career in the Commercial Real Estate Industry Today

An interview with Aron Weiner

Success in commercial real estate is built over time; it’s a long game. Relationships and reputations are not made overnight.

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 Michael Silver.

A renowned real estate industry veteran, Michael Silver drives Vestian’s global oversight and vision. With operations in the United States, India and China, Vestian has over 400 employees and growing. Prior to Vestian, Michael founded Equis Corporation in 1984, which over two decades became the world’s largest real estate services firm focused exclusively on serving corporate space users. He founded Equis with the primary objective of providing unbiased advisory, management and implementation services exclusively to users of corporate real estate. With his vision, Equis provided superior enterprise-wide corporate real estate performance by aligning real estate to business strategies, providing uncompromising client representation and leading integrated service delivery. In 2010 when Equis became part of a larger organization that also represents landlords, Michael Silver formed Vestian to re-establish a comprehensive range of dedicated occupier services, with state-of-the-art technology and top-notch market data to ensure the highest quality decision support of any corporate real estate services organization.

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 a bit about your childhood and how you grew up?

I grew up in a middle-class family in the city of Chicago — first in Albany Park and then in Rogers Park. I currently reside in Lincoln Park.

Can you share with us the ‘backstory’ of how you got into the real estate business?

I graduated from the University of Illinois Urbana-Champaign with a degree in Psychology. As graduation approached, I realized I wanted to pursue a career in business rather than becoming a psychologist. My first foray into the business world was with Arthur Rubloff and Company, the largest commercial real estate firm in Chicago at the time. There, I began my journey as a tenant representative, canvassing buildings and knocking on doors to offer my services.

Initially, it was a challenging role; success often hinged on persistence and the ability to get through to decision-makers. Despite the slow start and modest income, I remained determined. Gradually, my clients recognized that my sole focus was their best interest. I leveraged my knowledge of landlords’ pricing strategies to advocate effectively for tenants, which helped me build a reputation as a dedicated and skilled tenant representative.

My big break came when I was introduced to the CEO of Chicago Title and Trust, who sought my help to protect his employees from being overcharged by landlords. I flew to Seattle to address their concerns, securing significant concessions including lobby identification, substantial rent reductions, and covered expenses. This success led them to request my services nationwide.

As my client base grew, I realized they needed more than just pricing assistance. They required support with construction, furniture, and broader project management. I expanded my team accordingly and continued to enhance my reputation as a leader in tenant representation. One notable success was with Chrysler, who felt underserved by their existing representation. I took over their account and delivered exceptional results. Similar opportunities arose with other major firms, including Travelers Insurance

Over time, my business expanded significantly, opening offices in Los Angeles, New York, and eventually growing to 40 offices with around 250 salespeople. This growth culminated in a major sale of my business [Equis].

Can you tell us about your company and what makes it stand out?

Vestian provides end-to-end, occupier-focused real estate solutions that empower corporate tenants globally. Our unique approach combines local insights with world-class strategies, supporting your growth no matter where you are.

What sets Vestian apart is our unwavering commitment to our clients. We focus solely on corporate tenants, bringing an unmatched level of dedication and expertise to every real estate strategy we develop. This singular focus allows us to deliver tailored, high-impact solutions that drive your business forward.

Our suite of services includes Advisory Services, Transaction Management, Design and Project Services, Facility Management, and Portfolio Solutions. We pride ourselves on being exclusively tenant-focused, ensuring that our advice and actions are always aligned with your best interests. Unlike firms that have dual allegiances to owners and landlords, our independence means we can prioritize your needs without any conflicts of interest. At Vestian, we are committed to delivering solutions that not only meet but exceed your expectations, helping you achieve your strategic objectives with confidence and precision.

Can you tell our readers about the most exciting new projects you are working on now?

At Vestian, we are continually evolving and expanding our business, and I’m thrilled to share some of our most exciting projects currently underway.

One of the standout initiatives is our comprehensive rebranding effort. This project goes beyond updating our logo and visual identity; it encompasses redefining how we communicate our values, mission, and services to our clients and stakeholders. The rebranding is designed to reflect our growth, innovation, and commitment to excellence in the real estate industry.

In parallel, we are developing a new website that will serve as a cornerstone of our digital presence. The redesigned site will feature enhanced user experience, intuitive navigation, and a wealth of resources tailored to meet the needs of our diverse client base. This platform will not only showcase our expanded service offerings but also provide valuable insights through thought leadership articles, market analysis, and case studies.

These projects represent our dedication to staying at the forefront of the industry and delivering unparalleled value to our clients. We are eager to unveil these developments and continue driving forward with our vision for the future.

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?

One of the most exciting aspects of the current commercial real estate market is the distressed property situation. Many properties have seen their valuations significantly reduced, in some cases by half. This devaluation creates incredible opportunities for businesses to acquire prime locations at historically low prices, which can significantly lower overhead costs and support long-term growth strategies.

Another thrilling development is the evolution of work environments. As the nature of work changes, there’s a growing opportunity to design innovative, flexible workspaces that enhance productivity and collaboration. These new environments not only help companies serve their customers better but also make them more competitive in a rapidly changing marketplace.

The integration of advanced technology into the real estate sector is equally exciting. Technology now allows for precise solutions and real-time data analytics, enabling businesses to make more informed and strategic decisions. This fusion of tech with traditional real estate services boosts efficiency and effectiveness, ultimately delivering greater value to clients.

What are the 3 things that concern you about it? Why? What should be done to address and alleviate those concerns?

One major concern is the hesitation in decision-making due to market uncertainties, which leads to missed opportunities. Businesses need more education and comprehensive data to make informed decisions confidently. Another issue is the technological transition within the industry. While advancements are promising, many solutions are still evolving, causing uncertainty and reluctance to commit. Accelerating technological development can provide reliable, cutting-edge solutions. Lastly, shifting supply chains and logistics create instability. Businesses face difficulties making permanent strategic decisions due to these changes. Stable supply chain solutions and support for evolving retail spaces are essential to address this.

Ultimately, addressing these concerns requires a balanced approach, clear communication, and strategic planning. By doing so, the commercial real estate industry can navigate these challenges and seize the unique opportunities they present.

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.

If I had the power to implement three changes to improve the commercial real estate industry, my first suggestion would be to enhance supplier transparency in the U.S. The lack of clear, honest information from suppliers and property owners makes it difficult for businesses to make informed locational decisions that are sustainable for the future. Many suppliers fear that sharing information is not in their best interest. Creating standardized disclosure requirements or incentivizing transparency through tax benefits could encourage property owners to be more forthcoming, helping businesses better assess potential properties and make strategic decisions.

Secondly, I would support adaptive reuse projects, particularly the conversion of office buildings into residential units or other functional spaces. Urban areas often have an excess of unused office space, yet converting these buildings is frequently hindered by high costs and structural limitations, with only about 10% of office stock being suitable for residential conversion. Government subsidies and incentives for developers who undertake these projects could stimulate the market. For example, providing grants or low-interest loans to qualified developers could make such projects financially viable, leading to revitalized urban centers and increased housing supply.

Lastly, I would focus on the reconciliation and repurposing of obsolete buildings. Many buildings in the commercial real estate market are no longer viable for their intended use, creating a state of limbo. Accelerating the process of identifying which buildings can be repurposed and facilitating their teardown or conversion is crucial. City governments can expedite permits for demolition and redevelopment and offer incentives for projects that align with community needs. For instance, streamlined approval processes for mixed-use developments could help transform underutilized office buildings into vibrant spaces combining residential, retail, and office functions.

These changes — enhancing transparency, supporting adaptive reuse, and reconciling obsolete buildings — could significantly improve the commercial real estate landscape, fostering growth, sustainability, and innovation within the industry.

How has technology changed the commercial real estate industry, and how do you foresee it shaping the future of the sector?

Technology has profoundly transformed the commercial real estate industry, creating a divide between those who have integrated advanced technologies and those who have not. The “haves” are companies that leverage technology to gain deeper insights and make more informed decisions. These businesses utilize data analytics to identify and engage with the most promising prospects, ensuring that their resources are used efficiently. Data analytics play a crucial role in this transformation by enabling companies to probe the market for qualified leads and provide ongoing service to their clients. This intelligent use of data allows businesses to better understand their customer base, tailor their outreach strategies, and ultimately enhance their service offerings. For example, in the healthcare sector, data analytics can be used to optimize property management and improve patient experiences by tailoring facilities to meet specific needs.

Looking forward, the integration of technology will continue to shape the future of the commercial real estate sector in several ways, including enhanced market analysis, improved customer engagement, and operation efficiency. Companies that embrace these technological advancements will be well-positioned to thrive in the evolving landscape.

I am hearing the phrase “Stay alive until 2025” a lot. What is your plan to survive in the current market?

My plan is to lead our company and clients towards success by focusing on innovation, accountability, and transparency. We are leveraging cutting-edge data analytics to identify and pursue the most promising opportunities, ensuring strategic decisions that drive success. Additionally, we emphasize results-oriented strategies and total transparency, allowing us to prove the effectiveness of our decisions with clear, audited results. By combining expert insights with a commitment to transparency, we aim to navigate the current market complexities and achieve sustainable growth for Vestian and our clients as we move towards 2025 and beyond.

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?

Hard work — that’s number one. You must be prepared to put in the effort and dedication required to succeed in this competitive field. Equally important is the ability to listen. Being an attentive listener allows you to learn from others, understand client needs, and adapt to market dynamics.

Accountability is another critical trait. You need to be responsible for your actions and decisions, holding yourself to high standards of performance and integrity. Persistence is also crucial; the commercial real estate industry often requires resilience and tenacity to overcome challenges and achieve long-term goals. Curiosity cannot be understated. A curious mind enables you to explore various aspects of the market, seek out new opportunities, and stay informed about industry trends. This quality helps you imagine and navigate the many variables that impact commercial real estate.

In addition to these personal attributes, acquiring knowledge in specific subjects is beneficial. Understanding finance, market analysis, property management, and legal aspects of real estate will provide a solid foundation. Developing strong communication and negotiation skills is also vital, as these are essential in client interactions and deal-making.

Do you have three things you would advise a new real estate professional to avoid?

Stopping — that’s number one. Avoid inconsistency; stopping and starting your efforts can be detrimental since losing momentum makes it challenging to regain progress. Consistent work is crucial for building a successful career in real estate. Second, never become complacent after a successful transaction. Whether you were lucky or skilled enough to close a large deal, do not assume future successes will come effortlessly. Always stay proactive and maintain your discipline, regardless of past achievements. Lastly, lack of discipline can be a career killer. Many people fail in this industry because they lose their drive and commitment. Remember that there is always someone else working harder, so continually push forward through thick and thin. Consistent effort and a disciplined approach are vital to sustaining success in real estate.

When evaluating deals or opportunities in real estate, what are the most important factors you look for and why? Can you provide some examples?

When evaluating real estate deals, it is crucial to establish competitive metrics aligned with the business goals of our clients. First, we prioritize understanding the specific needs of our clients to ensure that the solutions we recommend enhance their competitiveness and profitability.

Location plays a vital role, but it’s important to choose sites that offer genuine long-term benefits rather than being lured by trendy areas. For example, many large tenants in Fulton Market [Chicago] have regretted their decisions, realizing that these locations, while vibrant socially, are not ideal for their business’s operational needs.

Additionally, patience is key. After COVID-19, many companies hastily signed leases, only to find themselves overcommitted as market conditions evolved. It’s critical to avoid rushing into decisions, when possible, as the market continues to adjust in favor of tenants. Taking time to evaluate all options can prevent costly mistakes and secure more favorable terms.

Can you share a story with us about the hardest deal you made, that ended successfully for you?

One of the most challenging yet ultimately successful deals I managed was selling Chrysler’s 350-acre test track in Arizona back in 2006. This sale was critical for Chrysler, as they needed to meet their quarterly financial targets. The difficulty lay in finding qualified buyers who truly had the means to complete such a substantial purchase.

We encountered several potential buyers who initially expressed interest but lacked the financial capability to follow through. After navigating through multiple prospects, we finally secured a commitment from a home builder planning to develop the land for residential use. However, at the eleventh hour, they hesitated and reconsidered their decision.

Recognizing the urgency for Chrysler, we applied strategic pressure, highlighting the potential reputational damage if the buyer backed out. By working closely with the treasurer of Chrysler, addressing objections, and mitigating concerns, we managed to secure their final commitment. The buyer found a lender, and the deal was completed in the spring of 2006 — just six months before the market crash.

This experience underscored the importance of persistence, strategic negotiation, and timely decision-making under pressure.

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”?

Success in commercial real estate is built over time; it’s a long game. Relationships and reputations are not made overnight. For example, my long-term relationship with Citigroup was cultivated over years of consistent performance and trust-building, leading to sustained business opportunities. Building genuine relationships is crucial. Think of your clients as friends you are building trust with. The decision to hire you often hinges not just on your skill set but also, on the trust, developed over time. For instance, my work with Chrysler, AT&T in the Midwest, and Chicago Title involved long-term pursuits. These clients sought not only expertise but also advice that would make them look good to their peers and superiors. By providing insightful information that they could confidently present to their boards, I became a trusted advisor, thereby securing long-term business relationships.

Providing value beyond the deal is another critical factor. Clients value advisors who help them shine in front of their stakeholders. Always aim to arm your clients with valuable information that boosts their standing internally. This approach solidified my relationships with companies like Ameritech, which later became AT&T, and others, as I provided insights that helped my clients succeed within their organizations. Adaptability and persistence are also paramount. The industry constantly changes, and being adaptable is crucial. Persistence in pursuing leads and not giving up after initial setbacks also pays off. For example, when selling the Chrysler test track, we faced multiple buyer hesitations, but persistence and strategic pressure led to a successful deal despite the challenges.

Finally, always operate with integrity and transparency. Clients appreciate honesty and straightforward communication. This builds credibility and trust, essential for long-term success. Throughout my career, maintaining high ethical standards has been key to fostering strong client relationships and securing repeat business. In summary, building a successful career in commercial real estate requires patience, genuine relationship-building, providing added value, adaptability, and unwavering integrity. These principles have guided my journey and can serve as a roadmap for others aspiring to succeed in this field.

What advice would you give to another real estate professional about improving the work culture, building team morale, and helping each employee thrive?

To improve work culture and build team morale, meet early and often as groups. Frequent group meetings foster collaboration, innovation, and a sense of community, which are crucial for brainstorming and problem-solving. While remote work has its place, it can be counterproductive for our business, which relies heavily on teamwork. In-person interactions allow us to develop strategies and grow together more effectively. Limit remote work to tasks that don’t require group collaboration.

Creating a connected and engaged team is essential. Coming into the office enables spontaneous interactions and immediate support, enhancing productivity and morale. By emphasizing teamwork and personal connections, we can create a thriving workplace where everyone feels valued and motivated to contribute.

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 emphasizing the importance of hard work and genuine customer interaction. In today’s world, hard work is becoming a lost art. My upbringing in a deli, working all day and engaging with customers, taught me valuable lessons that seem to be fading. I believe everyone should develop business acumen and the ability to spread goodwill. Leveraging digital platforms, we can effectively share these values and create a positive impact.

How can our readers further follow your work online?

You can stay updated on my work by visiting Vestian’s new website, which is launching this summer. Additionally, you can follow me on LinkedIn. I’m excited to connect and share more about our projects and industry developments.

This was very inspiring. Thank you so much for joining us!