Diversity Report Marks Important Step For Real Estate Industry.

A new study recently completed by FPL Associates L.P., (“FPL”) reveals that the real estate industry has a great deal of ground to cover in order to catch up with the movement towards workplace diversity that has mobilized corporate America over the past several years.

The report, the first of its kind for the industry, was sponsored by several of the nation’s leading real estate companies, including Cushman & Wakefield, Inc.; MacFarlane Partners; and Pulte Homes, Inc. It reveals both a pronounced insufficiency of opportunities for minorities in real estate as well as some encouraging details on successful diversity initiatives at a few forward-thinking real estate companies.

“We are committed to improving diversity in the real estate industry not only because it’s the right thing to do socially, but also because it’s the right way to run a business,” said Bill Ferguson, Co-Chairman of FPL.

“Corporate America is undergoing rapid, fundamental changes in the demographics of its employees and customers. As workplace diversity increases and minority buying power grows, it’s clear that success in tomorrow’s real estate industry requires the successful implementation of diversity initiatives today.”

FPL’s study provides both current perspectives and quantitative measurements of diversity in the real estate industry. “Our goal,” said Ferguson “is to create awareness of the status quo and define a path towards effectively driving new workplace initiatives.”

Ron Whitley, Managing Director, Human Resources at Cushman & Wakefield, commended FPL’s Diversity Study and said he hopes this year’s report is the first of many. “We should embrace this opportunity to start a dialogue about best practices,” said Whitley. “The more we can show how diversity improves business performance, the more traction our initiatives will get.”

Another survey sponsor underscored the importance of diversity initiatives in light of changing demographics. “As the industry faces a more diverse America in the coming years, real estate companies — nationally and globally — must be more aggressive in their diversity initiatives, which are critical to a company’s competitive advantage,” said Victor MacFarlane, founder and managing principal of MacFarlane Partners, a real estate investment manager specializing in urban development/ redevelopment projects. “Today, minority groups as a whole are the majority in several of the largest metropolitan area in the U.S. and the wage gap between women and men is narrowing rapidly. As business leaders, we must address these and other demographic shifts to ensure the success of our companies.”

For the study, FPL examined formal diversity practices, initiatives and studies across corporate America in order to understand successful efforts in other industries. The firm then compiled information collected by other researchers through interviews with professionals in a broad range of industries and conducted additional interviews with leaders in real estate.

Finally, FPL conducted the first-ever survey of the largest real estate firms across several sectors. Some key findings of the Diversity Study include:

— 70% of participants believe that their CEO and/or senior leadership team are committed to diversity; however, less than half indicated that a formal role for oversight of diversity initiatives exists at their organization

— Only 2% of respondents reported that African-Americans comprise 15% or more of their Board positions, and Asian and Latino Board members were even more rare (a particularly startling figure in light of a recent Fortune magazine study which found that minorities occupied 21% of Board positions among of the Fortune 1,000 and the 200 largest private U.S. companies)

— 92% of companies surveyed indicated that they currently do not align their compensation practices with the company’s diversity goals

For more information at http://www.fpladvisorygroup.com