Sam Zell’s “Am I Being Too Subtle?”

A quick read (or audiobook) that’s entertaining for any deal junkie but has applicability to goals setting and management philosophies and some (badly needed) Chicago pride.  I’ve seen him speak many times.  He’s typically – though not always – ahead of the curve.  One of my favorite speaking engagements of his was when he played his New Year’s 2000 Zellennium song.


  1. It appears that Sam wrote his autobiography long ago, and then shaped actions to build the desired legacy.  If this is true, this is a great example of the habit of writing your biography or eulogy.
  2. He’s a list maker, a common activity for high-performing individuals. I view them as “mini goals.”
  3. As a risk-taker, he says that his greatest fear is making a decision without having all the information.  He’s confident in his ability to evaluate and assess the known risks but, it’s the unknowns that bother him.  He clearly did not see the capital markets shut down right after the Chicago Tribune acquisition.
  4. He prides himself at being innovative and incentivizes his employees/partners to do the same.
  5. He hired a creative director early on to build his brand and leverage his considerable skill set in this regard.  He understands the value of his personal and Equity Group’s brands. Forward thinking.
  6. Incentivize employees to act like owners – think big, long-term and be conscientious.
  7. Creating wealth is about leverage. The primary levers are people and capital.  I know someone that calls the structure that pulls these levers a “pyramid.”   Such hierarchical structures are demoralizing.  It’s not a coincidence that both Zell and Ray Dalio talk about meritocracies (though I haven’t researched how well Dalio’s people share in the spoils).  A key question is how to motivate people for the common good.  It goes beyond financial rewards.
  8. History (re)written?  The winners get to write History and I always question the biases of an author. Does Sam rewrite it?  The physicist in me probes every observation.  Zell is clearly concerned about his legacy and paints a favorable picture, as one would expect.  I’d like to believe it.  He’s been so generous with his time, speaking around Chicago, and does indeed make large donations, though these good just be examples of ways to pacify an ego.  His reputation supports much of what he extols in the book.  Perhaps my one area of doubt, which he ultimately convinces me of, is whether those on the opposite side of the negotiating table share his perception that the negotiation was win-win.  My experience is that the more the counterparty says “I’m a good guy” the less (s)he will be.  Regardless, it is instructive to see how concerned he is for this aspect of his reputation.  When you need to do that many deals (because you have so much capital to place), I’m sure his reputation is important.

There is certainly, on average, a different/higher professional courtesy amongst corporate real estate brokers and with landlords that work in a given geographical market and must do so repeatedly.  This can help the corporate occupier client, oftentimes getting to final deal terms more quickly.  The downside is when there’s a “market-middling” of the transaction, particularly common when brokers also represent landlords.  For those brokers active in a geographical market, they are worried about future transactions and may therefore be reserved in the representation of their corporate clients’ interests.

Data is everywhere but CRE. Why?

How many hours has it been since you heard the phrase “Big Data?”  Albeit, other technologies capture the public consciousness (Blockchain in 2017) but I find the silence deafening.  We all predicted Amazon would crush retail back in 1999 but this has only recently come to pass, as evidenced in Fig 1.   Reality takes longer (and a good bit of execution) to materialize.  As the hype wears off, the real fundamental change starts to happen.  It’s permeated most areas of the organization but two: HR and corporate real estate (CRE).  Why is there not more emphasis on quantitative measurement of a company’s human capital and how its CRE drives economic profit? For most firms, they are the 1st and 3rd largest cost categories respectively.

Fig 1:  Graphs of Tech (Amazon) vs Bricks and Mortar (Simon is the largest retail REIT) stock prices are always entertaining.

Tech vs Bricks & Mortar

Long after we started discussing the marginalization of physical retail, it has now taken hold.


Hello World!

October 28, 2001, I posted my first blog entry on   I was trying to make sense of the world — two years out of school, enjoying the wonderful spoils of Chicago and seeing a lot of upheaval after 9-11 and an impending Tech Bust.  I now find that Google re-posted them, after tearing down after 2010.  The posts below were brought over from that site.

As I embark on a new round of journaling, I plan to explore how I see the world changing, most notably from the lens of my primary job – a corporate real estate advisor for Colliers International, – as a multifamily investor (, the economy and, possibly, American culture.

U.S. Unemployment Varies Significantly Based on Income Levels — Seeking Alpha

When you get granular, it’s a wonder office real estate has been beset by such challenges. As reported by Seeking Alpha, U.S. Unemployment Varies Significantly Based on Income Levels. The top three income deciles, representing those with household incomes in excess of $75k, have an unemployment rate of 4.07% (vs 9.7% in January overall) and underemployment (ie U3 + U4) of 6.63%. This could help explain why office CRE has held up so much better than industrial (warehouse / manufacturing) space.
It could be that there is not the extent of shadow space many (I) believe and thus office CRE, which has held up better fundamentally than all other major RE classes, will bounce back sooner. Admittedly, I’d like to understand the historical relationship of these values….it’s on the to-do list.

Olympics in Chicago

As we are days away from the decision for the 2016 Olympics, it’s time to handicap the game.  From the moment it was announced, I tried to play the southside real estate market. Fortunately, I wasn’t too successful – limiting my interest to one property (greater economic headwinds have limited the payoff).  Any new capital put to work on the southside will benefit if Chicago loses but I’m going to stick with my 2007 prediction and say we clinch.  I don’t feel as good about it as I did six months ago.  Rio has performed well in competition. 

In the end, my prediction comes down to a few things: (a) we’re regaining some popularity in the global scene, (b) historically, U.S. Olympics have proven economically successful, and (c) Daley and Ryan don’t lose.  That said, I do think it will be a loss economically in the short run.  I’m still a supporter of it because of the long-term benefits and possible infrastructure improvements, but, the costs of Daley’s boondoggle will be great.  The Skyway and parking meter privatizations were $2.4 B of shady spending. Imagine what happens he gets his hooks into $3.5 billion plus in spending that’s far more difficult to track.  He makes Blagojevich look saintly.



Park City Condo & Hotel Pricing

It snowed three out of four days. Kurt’s place is Arrowleaf right on Silver Buck / Silver Strike Express lift is awesome. Centennial is the best run (great trees).
On-mountain condo pricing: about $1100 / sq. ft. for 2-year old Arrowleaf product; St Regis is trying to get $2k for their new condos but not going well (bad location at Base of Mountain); Montage is looking to get $2k too; lots are around $1M.
Deer Valley is not a very challenging slope but it snows frequently and Park City has great nightlife. I’ll come back. Great for families and novice skiers.