Tammy’s 5-step framework to combatting systemic discrimination in commercial real estate
As the nation and the multifamily industry continue to grapple with racial inequities, NMHC President Doug Bibby was joined by Tammy Jones, Co-Founder and CEO of Basis Investment Group LLC and Chair of the Real Estate Executive Council (REEC), to discuss what concrete steps multifamily leaders can take to diversify the industry and expand opportunities for people of color in commercial real estate.
In the discussion Tammy outlined a 5-step framework for industry leaders to consider and undertake.
1 – Create and Implement a Diversity Business Plan
When a firm determines greater diversity as a goal, it should set about achieving greater diversity with the same rigor, approach and determination it would any other business objective. Namely, greater diversity requires a concrete plan with specific metrics, targets and performance goals and it needs to be supported by a dedicated team that has buy-in and integration with senior leadership as well as board members. Finally, accountability is essential and team members’ compensation should be tied to the success of their plan.
2 – Diversity Ecosystem
The commercial real estate industry has made a number of positive attempts at broadening diversity over the years. Many of its leaders’ hearts are in the right place. However, these efforts have been disparate and haven’t come together in a meaningful way.
As we move forward, business leaders should understand that diversity is built – it doesn’t just happen on its own. Creating a diversity ecosystem needs a strategy, a business plan and it needs to start at the top – with board members and the C-suite. It is then the responsibility of those leaders to put a system into place that fosters diversity – through early exposure and access during high school and college, and also through the beginnings of careers, mid-management and into senior leadership, board positions and entrepreneurship.
3 – Spending with African American Firms
The multifamily industry is often one of relationships. When firms determine that greater diversity is a goal for their organization, then it should take a serious look at its business relationships and identify opportunities for diversification. For example, multifamily leaders should consider who are their vendors, lawyers, brokers, appraisers, underwriters, and other partners and make sure they are inclusive with who they hire and partner with.
4 – Access to Capital and Credit
One of the most significant challenges facing Black business leaders looking to make their way in commercial real estate is the dearth of access to capital and credit. Even today in 2020, Black entrepreneurs don’t have the relationships that provide them with access to lending, capital and credit. This is an area where NMHC can act as a convener and help bridge the gap between Black business leaders and bankers, lenders and other sources of institutional capital.
5 – Partnership, Partnership, Partnership
Finally, this is a problem that is too large for any single person or firm to solve alone. There have been a number of well-meaning approaches in the past, but they have not proven scalable. At this critical juncture in our nation’s history, we need to band together and partner to diversify the industry. This means developing strong, concrete partnerships that foster greater diversity and opportunity.
NMHC is committed to partnering with REEC, continuing to work closely with Tammy and making sure that we keep our focus on clear, achievable outcomes to broaden diversity and opportunity within the commercial real estate sector.