While ESG factors play an important role in property managers ‘investment decisions, asset owners are also asking managers to look within their own companies’ diversity and inclusion efforts.
Gender and ethnic diversity is becoming a major issue for property managers, pushed by some of the biggest asset owners who don’t think management companies are diverse enough and call on them to change, said Josh Herrenkohl, Managing Director principal based in New York. in the real estate practice of FTI Consulting.
For the first time this year, Pensions and investments included questions about diversity and inclusion in this year’s property manager survey. Only three of the 84 managers who responded to this year’s survey are minority or women-owned businesses. They are Adelante Capital Management LLC, Financial Phocas Corp. and TerraCotta Group LLC.
“As a trend, women and minorities are progressively better represented in all ranks of real estate companies, but progress is much slower at the highest levels,” said Tingting Zhang, founder and CEO of El Segundo, California. Terracotta Group. “The reasons are plural and complicated.”
Long hours and “fierce competition” are not attractive career paths for women who want a work-life balance, Ms. Zhang said.
“In addition, there are subtle but important barriers for women and minorities to run businesses in a field still dominated by white men,” she said.