A Stirling Salute
Stirling Properties celebrates success of Team Stirling & the company.
Stirling Properties hosted a virtual Stirling Salute last Friday to acknowledge and award the team and company’s remarkable success over the past year.
Marty Mayer, Stirling Properties’ President & CEO, kicked off the company-wide event recognizing the challenges of the past year and highlighting the team’s extraordinary adaptability and response. “Like most businesses, in the wake of the COVID-19 pandemic, our commercial business slowed substantially. But we were able to pivot quickly, adapt to the challenges—which uniquely positioned us to take advantage of the resulting opportunities,” said Mayer.
He noted the favorable position the company is in today is due to the groundwork that’s been laid over the last ten years. “As a company, we took chances, made conscious decisions without having a clear view of the outcome but rather a vision of the future possibilities. That’s the reason we were able to respond to this crisis and all the crises before that. Our accomplishments are due to the collective efforts of the entire team. You have heard me say, ‘when opportunity comes, it’s too late to prepare.’ Conversely, ‘when challenges come, it’s too late to prepare.’ That certainly was never truer than in 2020.”
He and Stirling Properties’ partners thanked Team Stirling for their hard work and dedication. Brokerage Division Award recipients received recognition for Bronze, Silver, Gold, Platinum, Diamond, Emerald and Ruby production levels based on individual adjusted gross commissions from 2020. Special acknowledgment was also given to Rhonda Sharkawy, Senior Retail Leasing and Development Advisor in New Orleans, for achieving the Top Commercial Producer Award —this is the 6th consecutive year she has earned this accolade.
Brokerage Awards
Ruby
Rhonda Sharkawy (Top Producer), New Orleans
Justin Langlois, Baton Rouge
Emerald
Lee de la Houssaye, Covington
Chad Rigby, Baton Rouge
Diamond
Charles Cornay, Lafayette
Nathan Handmacher, Mobile
Ryan Murphy, Covington
Jason Scott, Pensacola
Platinum
Jeff Barnes, Mobile
Steve Legendre, Baton Rouge
Ryan Pécot, Lafayette
Gold Award
Joe Gardner, New Orleans
Gaines Seaman, New Orleans
Silver Award
Thomas Bryan, New Orleans
Seth Citron, Lake Charles
Amanda Goldman, Mobile
Scott Macdonald, Baton Rouge
Bronze Award
Andrew Dickman, Mobile
Jim Dowling, Shreveport
Ben Graham, Baton Rouge
Griffin Lennox, New Orleans
Angie McArthur, Mobile
Karen McElroy, Shreveport
Stacy Odom, Shreveport
Tommy Parsons, Baton Rouge
Carly Plotkin, New Orleans
Saban Sellers, New Orleans
Dottie Tarleton, Baton Rouge
Also recognized were employees and agents who achieved special anniversaries with the company. Service Awards were given for 5, 10, 15, 20, 25, 30, 35, 40 and 45-year milestones.
Service Awards
45 Years of Service
Judy McKee – Covington
40 Years of Service
Michele Wallace – Covington
35 Years of Service
Marty Mayer – Covington
30 Years of Service
John Arthurs – New Orleans
25 Years of Service
Charles Cornay – Lafayette
20 Years of Service
Chris Abadie – Covington
Rhonda Creel – Covington
Beezie Landry – Covington
Patrick Malik – Covington
Ryan Pécot – Lafayette
Jeanne Taravella – Covington
15 Years of Service
Carri Creel – Covington
Lindsey Palmer – Covington
Dawn Plaisance – Covington
Tara Slater – Covington
Laura Wallace – Covington
10 Years of Service
Jason Babin – Lafayette
Carolyn Ciarrocchi – Lafayette
Gregory Gautreaux – New Orleans
Jimmy Gomez – New Orleans
Joseph Kimble – New Orleans
Solomon Lewis – New Orleans
Scott Macdonald – Baton Rouge
5 Years of Service
Jaime Burchfield – Covington
Bradley Cook – Covington
Jim Dowling – Shreveport
Amanda Goldman – Mobile
Jared Lauderdale – Covington
Carly Plotkin – New Orleans
Rebecca Pritchard – Lafayette
Lesia Richardson – New Orleans
Saban Sellers – New Orleans
President’s Message: Lessons Learned
As midnight approached on December 31st and the end of the year was in sight, there were all sorts of GIFs, memes and messages circulating, illustrating how anxious we were to finally close the door on 2020. The whole world was exhausted and eager to move on.
But I believe before we slam that door on 2020 and block it from our memories, we should take a moment to look back and reflect on the valuable lessons it taught us—both good and bad—and take them forward with us.
I, too, have pandemic fatigue and am beyond ready to move on. However, my exhaustion stems not just from COVID but also from the constant animosity, anger and vitriol on so many issues that only seemed to escalate to a boiling point in 2020. I am disappointed and disheartened by the numerous topics that have become divisive between families, friends, neighbors and coworkers. And I am disgusted that our children and grandchildren are watching adults behave in ways that we (should) teach them not to. We must do better.
So, what are some of the lessons of 2020 that I think are worth taking into the new year?
- Spend more time listening than speaking (or tweeting). Who knows, you may learn something new. You may understand someone else’s point of view. You may even gain a new perspective.
- Have more empathy for others. We don’t know what it’s like to walk in someone else’s shoes. But maybe if we do more of the first thing I mentioned (listening), we might just learn something about them and see things differently. We can’t judge someone else looking only through the lens of our own life experiences.
- We are better together. No matter what we are trying to accomplish—whether it be in sports, in battle, in our community, in our workplace—we are more successful when we work together, not separately. We saw that firsthand in our region post-Katrina when we finally decided to work collaboratively rather than parochially, and we are all much better for it.
- Treat others the way you wish to be treated. No matter what religion you may believe in, they all espouse some version of this basic humanistic value. How quickly and often we seem to forget this most fundamental teaching.
- Help others in need. During this challenging time, so many people and businesses are struggling, more so now than ever. Pay it forward and do something to proactively help someone else. My favorite quote (by John Wooden) says, “You can’t live a perfect day without doing something for someone who will never be able to repay you.”
These all seem so simple and yet sometimes so elusive. So, as we turn the page to 2021, move on from an exhausting year, and set our New Year’s resolutions of healthier goals, business accomplishments and plans, I hope those resolutions include looking outward and aren’t solely focused inward. A new year presents a perfect opportunity to make changes—right wrongs, try a little harder, be more open-minded.
This year, let’s all resolve to learn from the past, take the important lessons to heart, and set a better example for those that follow.
I wish you all a very Happy New Year…and a better 2021!
Marty
Adapting to Change
Stirling Properties celebrates first-ever virtual annual honors event!
Stirling Properties celebrated its 22nd Annual Stirling Honors last Friday in a first-ever company-wide virtual format. The event recognized and distinguished the successes of Team Stirling and the company over the past year, despite recent challenges stemming from the COVID-19 pandemic.
Stirling Properties’ President & CEO, Marty Mayer, served as the emcee for the presentation and discussed how today’s challenging landscape requires adaptability in our company and the commercial real estate industry. Mayer said, “Companies that can adapt and meet the changing environment will survive and find opportunities for success—this has always been one of our strong points. It’s one of our core values, a characteristic of our company, See Beyond the Present: We adapt and evolve for long-term sustainable success.”
He and Stirling Properties’ partners thanked Team Stirling for their hard work and dedication. Lynn Blanchard and Krystal Atkins were acknowledged as recipients of Stirling Properties’ most prestigious honor, the 2019 Exceeding Excellence Award, presented for extraordinary employee actions that exemplify the values necessary to further the success of the company. Brokerage Division Award recipients received recognition for Bronze, Silver, Platinum, Diamond, and Ruby production levels based on individual adjusted gross commissions from 2019. Special acknowledgment was also given to Rhonda Sharkawy, Senior Retail Leasing and Development Advisor in New Orleans, for achieving the Top Commercial Producer Award —this is the 5th consecutive year she has earned this accolade, producing over $1 million dollars in commissions.
BROKERAGE AWARDS
Ruby
Rhonda Sharkawy (Top Producer), New Orleans
Chad Rigby, Baton Rouge
Emerald
Ryan Pecot, Lafayette
Diamond
Ryan Murphy, Covington
Joe Gardner, New Orleans
Scott Macdonald, Baton Rouge
Jeff Barnes, Mobile
Jason Scott, Pensacola
Platinum
Saban Sellers, New Orleans
Nathan Handmacher, Mobile
Justin Langlois, Baton Rouge
Gold Award
Thomas Bryan, New Orleans
Bradley Cook, Covington
Angie McArthur, Mobile
Carly Plotkin, New Orleans
Seth Citron, Lake Charles
Steve Legendre, Baton Rouge
Silver Award
Charles Cornay, Baton Rouge
Melissa Warren, New Orleans
Lee de la Houssaye, Covington
Karen McElroy, Shreveport
Stacy Odom, Shreveport
Andrew Dickman, Mobile
Bronze Award
Dottie Tarleton, Baton Rouge
Beth Cristina, New Orleans
Gaines Seaman, New Orleans
Jill Meeks, Mobile
Ben Graham, Baton Rouge
Also recognized were employees and agents who achieved special anniversaries with the company. Service Awards were given for 5, 10, 15, 20, 25, 30 and 35-year milestones.
SERVICE AWARDS
35 Years of Service: Sharon Amacker – Covington, Donna Smith – Covington
30 Years of Service: Rick Skelding – New Orleans, Dottie Tarleton – Baton Rouge, Monica Milazzo – Covington
25 Years of Service: Lee de la Houssaye – Covington
20 Years of Service: Lynn Blanchard – Baton Rouge, Tina Crouchet – Covington
15 Years of Service: Mark Salvetti – Covington, Marcia McGarrity – Covington
10 Years of Service: Jim Short – Baton Rouge, Richard Frazier – Baton Rouge, Ryan Murphy – Covington
5 Years of Service: Lesley Huval – Southpark Storage, Sharon Horton – Westland Plaza, Angela McArthur – Mobile, Sean Montreuil – New Orleans, Andrew Dickman – Mobile, Joyce Ori – Mobile, Valda Butler – Covington, Griffin Lennox – New Orleans, Robin Hayles – Mobile, Helen Giang – Covington, Thomas Bryan – New Orleans, Mitch Gauthier – Covington, Patty Meyer – Covington, Rachel Jerkins – Mobile, Jason Franklin – Mobile, Rachel Fonseca – Covington, Sarah Schoonmaker – Covington
Stirling Properties’ Commercial Agents Among Top Industry Producers In the Greater New Orleans Area
Stirling Properties commercial real estate agents were recently honored for outstanding industry achievements and transactions during the New Orleans Metropolitan Association of REALTORS® (NOMAR) Commercial Investment Division’s (CID) Annual Achievement Awards virtual ceremony.
Rhonda Sharkawy
Rhonda Sharkawy, Senior Retail Leasing & Development Advisor, was awarded top Retail Broker of the Year for the greater New Orleans area with a sales and leasing volume of more than $45 million in 2019.
Saban Sellers
Saban Sellers, Investment Advisor-Multifamily, was named top Multi Family Broker of the Year with a sales and leasing volume of more than $16 million in 2019. He was also awarded Land Broker of the Year with a total credit volume of $4.3 million. Sellers also received honors for top Land Lease of the Year and Multi Family Sale of the Year.
Carly Plotkin, Advisor, received the award for Retail Lease of the Year. Ryan Murphy, Senior Advisor, and Bradley Cook, Advisor, were the recipients of the Office Sale of the Year award.
Melissa Warren, CCIM, Senior Advisor, Lee de la Houssaye, Senior Advisor, and Bradley Cook, Advisor, were among Silver Production Award recipients for obtaining total commercial credit sales and leasing from $2.5 – $4.9 million.
Carly Plotkin and Ryan Murphy received the Gold Production Award for commercial credit sales and leasing from $5 – $9.9 million.
Rhonda Sharkawy and Saban Sellers were awarded Diamond Production Awards for total commercial sales and leasing volume of over $15 million.
With 53 agents and nine offices spanning the Gulf South region, Stirling Properties’ brokerage team specializes in all aspects of commercial real estate, including retail, office, industrial, healthcare and multifamily sectors. In 2019, our commercial brokers completed 787 transactions totaling 6.9 million square feet, with a total commercial volume of over $555 million.
So, what’s coming next for lenders and borrowers of CRE?
Commercial real estate today is extremely dynamic. Under “normal” circumstances, that is a positive thing, but in the context of the events over the last four months, dynamic is detrimental. There has been much discussion about accelerated uses of technology in the industry and how it will impact retail, office, hospitality, multi-family and industrial real estate sectors. We hear a lot about PPP funds, rent deferrals, omnichannel strategies, decentralized supply chains, working from home and creating healthy environments for employees and customers.
One issue, though, that to this point has been largely missed is the relationship between lenders and borrowers. Over the next few years, there will unquestionably be fallout from the aforementioned discussions that will ultimately put stress on the relationship between lender and borrower in the commercial real estate space. So, what’s coming, and how do we address it?
To look at the future, the first step is to understand the underlying issues of where we are today. In this Covid-19 landscape, the stress on businesses has significantly impacted landlords across the board. Forced closures by governing authorities, diminished foot traffic in retail, vacant hotels, lower utilization of office space and disrupted supply chains are all examples of issues that tenants have faced throughout the commercial real estate sector. Even in multi-family where tenancy has remained high, and rent collections stayed strong, there is a fear that once the stimulus provided by the Federal Government is no longer a factor, collections could become a massive issue.
The effects on lenders and borrowers will be felt across the board. If tenants can’t pay rent, which, in turn forces landlords to either seek relief from their lender or not perform on loan requirements, what happens next? For the few borrowers with deep enough pockets, they could attempt to pay penalties or cover debt service themselves, but at the expense of wiping away a lifetime of work and cash reserves. Furthermore, there is no guaranty that in six months or a year down the line, there will be enough tenants paying rent to stabilize the property and sustainably cover debt payments. Some tenants have continued to stay afloat, but how long can they hold on operating at reduced capacity, unable to get stable shipments of supplies or workers. And, how long can a landlord continue to float the debt service from reserves before they are gone altogether?
So far, most landlords and tenants have recognized their unique predicament and have tried diligently to work together to bridge the gap for survival. Still, as time goes on, this will become less tenable, and there will be fallout. The same issues will inevitably arise between the lender and borrower. We already see this in the CMBS segment of our market, where both sides have less leeway to work through cash flow issues. That said, the real stress has yet to be realized across the industry.
As the crisis continues—regardless of the pace of recovery—more commercial properties will certainly be impacted in both the short- and long-term. We anticipate a significant increase in distressed properties, which will go into servicing or foreclosure. As a result, investors and property owners will be left to sort through the chaos.
At Stirling Properties, we have begun working with lenders, servicers and property owners to strategize solutions for potential problems that continue to grow as loans rollover, values decrease and properties default. While there is no one-size-fits-all solution to the issues, our Lender Solutions Program can help.
We have created a platform that, regardless of the type of lender or borrower issues, can help to alleviate the stress. Stirling Properties has a proven track record of success working with all commercial property types to develop a plan and achieve the end goal. Whether it is to stabilize an asset for the current borrower, manage a property and process through foreclosure, or ultimately find the right purchaser through asset disposition, we have the experts to achieve the desired results.
If you are an investor, property owner or lender who needs assistance with valuation, asset and property management, development or disposition services, please reach out to us. Our experienced commercial advisors are knowledgeable in various property types and market segments.
Our Lender Solutions Program can help you determine the next steps. For more information, contact Chris Abadie at (985) 246-3721 or cabadie@stirlingprop.com.
President’s Message: Now What?
As we move beyond the initial shock and awe of the Coronavirus crisis, we in the commercial real estate industry begin considering “Now What?”
The pace of change in our business was moving at lightning speed even before the pandemic, with shifts in consumer and workplace behaviors, integration of technology, changing demographics. The pandemic only served to accelerate those changes to warp speed.
What will those impacts be? While none of us know exactly the long-term effects of this unprecedented situation (my crystal ball is still a bit foggy), those able to adjust and respond to the new landscape will find opportunities.
So, here are some of my observations as I sit here contemplating what’s to come.
Retail
- Open-air shopping centers primarily anchored by essential retailers like grocery, pharmacy and dollar stores are the winners and emerging stronger than ever. Enclosed malls, particularly B and C class with department store anchors, have seen an acceleration of their struggles.
- Online shopping surged during the pandemic and is still going strong, triggering increased behavioral trends such as BOPIS (buy online, pick-up in-store), curbside pick-up and delivery options—a direction we were headed in before.
- We will see an equilibrium point in e-commerce, and successful retailers will figure out how to marry online sales with storefronts and fulfillment centers. Those retailers that can successfully integrate online and brick and mortar will be the winners.
- Retailers will accelerate the depth and breadth of data mining of their customer base to drive more business into physical stores and improve upon convenience factors and delivery options.
- Creative restaurant operators will continue to find ways to expand take-out and delivery through innovative marketing, such as partnering with community associations for delivery options/pick-up stations within individual neighborhoods.
- Food kitchens offering delivery of various selections of meal options, like Asian, Italian, burgers, and salads all under one roof, will become increasingly more popular.
Supply chain and logistics
- Already one of the fastest-growing sectors before COVID was the distribution and logistics property type. Retailers, as well as many companies that depend upon the import of goods, saw a disruption in their supply chains during the pandemic, creating months-long backlogs of soft goods (remember toilet paper!), clothing, appliances, medical supplies (PPEs!), and even outdoor/sports equipment (bikes!).
- Businesses are going to diversify and expand their sourcing of goods and supplies, so as not to be dependent on one primary source, decreasing their risks of future interruption.
- The bright side is that we expect increased demand for manufacturing, storage and distribution facilities in the U.S., presenting more opportunities for development, as well as backfilling large blocks of space. This continuing trend bodes especially well here in the Gulf South region, where we have excellent logistical infrastructure in place, such as ports, air, rail and interstate systems.
Office
- The workplace landscape was already evolving pre-COVID; now, we see new, different twists on those existing trends.
- All companies will be pressed to reevaluate their long-term office needs and contemplate space decisions, with the health and safety of employees being paramount.
- Some permanent changes we can expect to continue in the office environment are distancing requirements, enhanced sanitation, reduced touchpoints, incorporation of more outdoor spaces, increased use of technology in place of meetings, and the adoption of more hybrid work environments balancing remote and in-office personnel.
- One winner in the office real estate sector will be the low-rise or garden office park setting, which will allow companies to control their environment, design safe floor plans and office layout for employees, and avoid dense, high-rise settings with crowded elevators.
- Some companies will be willing to pay more to get what they want, spurring an increase in demand for certain office types and opportunities for adaptive reuse and conversion of old retail space into office.
Investments
- Market turmoil usually creates opportunities to buy and sell. Those creative people who can sort through the challenges and prospects will be successful.
- Investor and property owners need to understand what will come out on the other side of this as more troubled, distressed and foreclosed properties inevitably hit the market—and more so, how do we value them? More thought will need to be given to analyze the risks and opportunities accurately.
- At Stirling Properties, we have begun working with local lenders to help strategize solutions for potential problems that continue to grow as loans rollover, values decrease and properties default.
The COVID-19 crisis has undoubtedly changed the commercial real estate industry and our businesses. Still, those who can adapt and evolve will be successful, especially if they have the right people in place to effectively see and execute.
Here at Stirling Properties, our team of skilled, experienced, professional advisors is well poised to assist our clients and investors in wading through these murky waters.
My crystal ball can’t precisely predict what will happen next. However, as it relates to Stirling Properties’ ability to weather this storm through our diversity, expansion of services for our clients, and extraordinary talent, the future is pretty clear.
