Staying the Course
A conservative approach delivers long-term success and reliability for this national firm.
Most would say that the story about the tortoise and hare would not apply to today’s economic condition. Fast and flexible is the tone of the day, rather than slow and steady.
In the last year and a half, analysts have looked at where we were, how we got into the current chaos, and how to recover or embrace what they call the ”new normal.” Unfortunately, if the experts are correct, the new normal will deliver fewer rewards for greater effort, which will require a shift in the way that many of us conduct business.
When asked whether their strategy is to adjust their approach to their market McCormick and Singerman state, “Absolutely not.” They have a long history of being conservative and plan to continue doing business this way in the foreseeable future.
Mark Singerman, Assistant Vice President/Regional Director of Arizona explained their philosophy to today’s market, “At Rockefeller Group, it’s business as usual and we see no reason to change our way of doing business.”
Slow and Steady Pays
Because the company has not used third party financing and they haven’t been overly speculative, they are in a solid financial position.
Mark explains, “We didn’t buy anything that was really risky. Everything was well located, well conceived, there is no third party lender waiting to swoop in and foreclose. That’s one of our hallmarks. We had the financial wherewithal to do that and will be around for the next 10 years—and longer.”
Tom McCormick, Senior Vice President Development agrees, “We’re in a strong position because we take a conservative approach and are able to accurately predict the outcomes of our actions.”
The result is steady growth, strong management of existing properties and projects, and tenant confidence that Rockefeller will be here for many tomorrows, rather than flaming out like many of their fast-moving competitors.
In Arizona and California, Rockefeller’s holdings exceed a million square feet of premium office and industrial space.
Market Smarts
The word “recession” doesn’t scare these two veterans. They’ve been in the commercial development business for many years, and have experienced turbulent changes in the market before. The difference is that now with Rockefeller Group, they can adhere to practices that are close to their own methods of doing business.
As they point out, proper execution, no matter what the market, will ensure that all the bases are covered and allow room for them to think outside the box when it comes to marketing property.
“This downturn will eventually go away, just like all of the others. Surplus properties will be absorbed. The fundamentals have not changed,” explains Singerman. “Lack of capital, low confidence and high unemployment took a long time to recover from in the past. But, we did come out of it.”
As Singerman points out, today’s housing market is beginning to stabilize and the traditional cycle of recovery is: housing, retail, industrial, then office. He plans on doing business as usual in 2010, and be ready for the recovery which he predicts will happen in 2011.
McCormick agrees, and shares that Rockefeller has a solid financial foundation, which is critical for tenants. “We have the dollars to do improvements and pay commissions; and we own our buildings free and clear. There won’t be any foreclosures.”
Rockefeller’s Focus
The robust financial health of Rockefeller Group Development Corporation should come as no surprise. The company is a national owner, developer and manager of prestigious commercial real estate properties. It was founded by one of America’s iconic families more than 80 years ago. Since that time, they’ve initiated many memorable commercial real estate developments, including Rockefeller Center in mid-town Manhattan, home of NBC Studios and Radio City Music Hall.
The Art Deco building was constructed in the 1930’s and into the 1940’s, in their signature quality workmanship.
In the decades following, the Rockefeller Group Development Corporation has initiated many high quality developments, including the Embarcadero Center in San Francisco. Their corporate philosophy of conservative policy and fiscal responsibility provides a firm and stable platform for clients.
Capabilities include a broad array of real estate developments from corporate headquarters and offices to landmark properties, multi-use urban complexes, distributions centers, suburban business parks, medical facilities and foreign trade zones.
Green Initiatives
After positioning themselves as a class-A product developer, Rockefeller is always looking to lead the market in quality innovations. Because of this, they have taken the lead in LEED-certified buildings here in the Southwest.
“We have the first LEED-certified warehouse in Tucson, maybe in all of Arizona,” exclaims Tom McCormick.
The advantages of building a LEED-certified building are numerous for tenants and owner-occupants. The biggest is reduced operating cost. However, the cost of making a building green is more expensive, but it isn’t as high as the market perception; additionally that cost will be paid for in lower operating costs in just a few years.
Singerman reminds us, “The premiums have not been drastic, within the 5 – 7% range which is not a huge cost to get green. The Green Council continues to change standards, but so far, it doesn’t have to be a costly construction.”
If Rockefeller Group Development Corporation has its way, there will be more LEED-certified buildings in the Southwest, and beyond.
Partnerships
The two men are uniquely suited to growing Rockefeller’s position in the Southwest. Both understand the role of “team” in successful business ventures and enjoy the challenge of creating a solution to any situation.
McCormick oversees seven markets across the country. And, he enjoys working with a variety of individuals who are part of his Rockefeller team, as well as their clients, “I get a chance to work with a lot of people and see many of the markets around the country. I get the chance to see how Phoenix ticks, what makes Chicago unique, and so on. It’s a privilege doing what I do.”
A natural problem-solver, Singerman loves the challenge of commercial real estate. “I have to have a problem to solve and development is basically a problem-solving business.”
Today’s market presents many challenges, but even on the best day, both men agree that development is a game for patient people. And, they were fortunate to be with Rockefeller where there was no pressure to aggressively sell and lease before the opportunities in a fast market disappeared. The team was able to focus on strengthening Rockefeller’s foundation to ensure long-term prosperity for their company and clients.
Balanced lives
Although they are passionate about their careers, McCormick and Singerman are also focused on their rich personal lives. Both make it a point to find time to enjoy their off-hours, give back by supporting educational initiatives and be involved in professional organizations.
Tom McCormick bikes near his home in Southern California and loves to travel—for business and leisure. He’s also involved in Catholic School education, which has rubbed off on his two children. His son is a high school basketball coach and his daughter is a Catholic school teacher.
Tom still serves on the SIOR Board of Directors after serving as President in 1998. His interest is in finding scholarships for degrees related to the commercial real estate industry.
A former tennis pro, Mark Singerman still works out—but limits his cardio exercise to elliptical training and spin class at the gym. Like Tom, Mark’s activities have influenced his daughter’s career choice. She went to school, and focused on dance performance, but is now a stage manager of the Alvin Ailey Dance Troupe in New York City.
He has also worked with the Urban Land Institute where he co-chairs the Program Committee at ULI Arizona, whose mission is to provide education on land use and development issues. He also participates in a program called Urban Plan. This program brings commercial developers to high schools where they work with students on a hypothetical redevelopment RFP, Request for Proposals. In this program the students make decisions about urban issues including land use, density, marketing, governmental approvals and financial feasibility which gives them real life, problem-solving challenges.
Going forward
The aim of both men is to strengthen Rockefeller’s position in Arizona and the Western region.
When asked how they see Rockefeller in the next few years, they both agree that the company will be in a stronger position in the next few years while still taking a conservative approach to building their holdings.
Slow, steady and solid, it is.
Mark Singerman
Assistant Vice President and Regional Director – Arizona
Rockefeller Group Development Corporation
Mark Singerman is Regional Director for Rockefeller Group Development Corporation. He is responsible for the development process of the company’s projects throughout Arizona, including in-depth financial and market analyses and direction of consultants, such as architects, engineers, and leasing agents.
Before joining the company in 2008, Mr. Singerman was the Western Region President of Crosswinds National LLC in Phoenix, where he was instrumental in forming the western national division to develop commercial and mixed-use master-planned communities. His extensive real estate career began in 1975 in the Midwest as a Retail Leasing Representative for Developers Diversified REIT in Cleveland, Ohio. Afterward, Mr. Singerman served 18 years in southern California with several large developers, including regional mall developer Ernest W. Hahn, Inc. and Trizec/Hahn where he directed the acquisition, development, and construction of numerous office, industrial, and retail-center buildings, as well as single- and multi-family residences. In addition, he acquired and managed the entitlement and development of over 4,200 acres in California, Arizona, Texas, Michigan, and Florida for mixed-use master-planned communities with infrastructure to support 15,000 homes, plus parks, schools, amenity centers, and commercial spaces.
Mr. Singerman holds a Bachelor of Business Administration, with honors in Personnel Management, from Ohio University, and a Masters of Business Administration from California State University. He is actively involved in the Urban Land Institute and several other national real estate organizations.
Tom McCormick, SIOR
Senior Vice President and Regional Development Officer
Rockefeller Group Development Corporation
Thomas E. McCormick, III, SIOR, is Senior Vice President and Regional Development Officer for Rockefeller Group Development Corporation, in charge of California Operations. Mr. McCormick’s responsibilities include development of new opportunities for industrial and office real estate business through his extensive contacts in both the brokerage and end-user communities. Prior to joining the company in March 2004, Mr. McCormick was the Chief Operating Officer of Panattoni Development Company .
A former National President and a longtime member of the Society of Industrial and Office Realtors (SIOR), Mr. McCormick began his real estate career with Coldwell Banker Commercial in 1981. After three years as President of Colliers Macaulay Nicolls, a privately held Canadian-based commercial brokerage firm with 85 offices around the world, Mr. McCormick left to become COO of Panattoni, which is one of the largest industrial developers in the United States.
As a member of the Society of Industrial and Office Realtors, Mr. McCormick is actively involved in the society’s Education Foundation. He served as SIOR in 1998, SIOR Foundation President in 1999 and 2000. Most recently he served as Chairman of the Realtor Commercial Alliance Advisory Board (RCA).
Mr. McCormick heads the regional office of Rockefeller Group Development Corporation based in Orange County, California.
TMcCORMICK@rockgrp.com
MSINGERMAN@rockgrp.com
