“Pasteur’s theory of germs is a ridiculous fiction. How do you think that these germs in the air can be numerous enough to develop into all those organic infusions?”
– Professor Pierre Pocket 1872
Walt Disney was fired as a newspaper editor because “he lacked imagination.” Thomas Edison was fired from his first two jobs for being “nonproductive.” Decca Records turned down the Beatles because “we don’t like their sound and guitar groups are on their way out.”
As regular readers, you know that I have pounded the table that it is “all about jobs.” Watch the unemployment numbers drop and you’ll see the real estate market recover. Like many writers, I would like to focus on the other “Jobs” for a moment. Steve Jobs’ philosophy was understanding the importance of putting the customers’ experience first. However, it was deeper than that he saw that the experience had a real bearing on people’s lives. Technology didn’t have to be about people sitting behind a desk doing what’s generally thought of as “work.” It was teenagers trying to find new music, grandmothers browsing family photos or people wandering a strange neighborhood looking for a bagel shop. Jobs’ insight wasn’t in seeing that technology could help people do these things (which is obvious) but that in doing so the technology needed to get out of the way as much as possible. Tech is a window to content and services, nothing more. Hmmm….maybe it is time to think about real estate in this way.
I must say that as genius as Steve Jobs was, he has almost single-handedly contributed to the largest negative absorption of commercial space in the history of real estate. Think about it, the iPod replaced Tower Records, Warehouse records, in fact, records, tapes, and CDs. The iPhone has replaced daytimers, cameras (in fact probably Kodak), and the way we think about telephones. Computers and the Internet have turned the retail world upside down (and emptied space) and the iPad is poised to finish off the bookstore and video store. Meanwhile, cloud computing has lessened the need for office space and laptops and iPads and iPhones allow workers to be productive from all corners of the world (as long as you’re connected to the internet.) This would all seem to be gloomy for real estate (maybe we should organize a march to Occupy Silicon Valley!) but just as human nature so misreads genius, as I illustrated in my opening, I am here to tell you that we all still have an inner need to see, be seen, do and be served. We are social beings It is when we realize this in the context of our properties and tenants that we will prosper again. Our spaces and tenants need to be warm, friendly and inviting. Places that people want to go rather than sit in front of a computer or TV. This is what defines great real estate and the genius of great developers, investors, and brokers.
I used to worry about the concept of what government did for me. But now I worry about what the government is going to do to me! If you are still trying to figure out the whole budget, debt crisis, and the Super Committee, I thought I would give it to you as an analogy to my new diet. Now that I am 50, I thought I would look at various weight loss programs. I decided that the government deficit reduction program (GDRP) was the most palatable. I decided I have been eating poorly for 10 years and probably should lose 15 pounds. Most of us assume that is 15 pounds from what we weight now. However, under the GDRP weight-reduction plan, I assume that I am going to eat badly for the next 10 years and gain 45 more pounds so I am going to lose 15 pounds relative to the 45-pound increase. So…I’ve got 30 pounds to still gain over the next decade! I love this plan. Cheers!
Dan Quayle once said, “Bank failures are caused by depositors who don’t deposit enough money to cover losses due to mismanagement.” Well, banks are slowly repairing and rebuilding themselves. They are starting to lend again but you still need to realize that there are still a lot of “bikini loans” out there (you know, those are the ones you can see but not touch!)
The International Council of Shopping Centers (ICSC) said it expects holiday sales to increase, the second consecutive increase following two down years in 2008 & 2009. Michael Niemira, ICSC’s Chief Economist says, “The sales trend points to a continued picture of unevenness.” Wal-Mart, meantime said low-income shoppers are having a harder time stretching their dollar than they did a year ago. As part of their response, they are bringing back layaway services for the holiday season.
This year we are going to experience four unusual dates: 1/1/11, 1/11/11, 11/1/11, 11/11/11, and that’s not all: Take the last two digits of the year you were born and the age you will be this year on December 31st and the result will add up to 111 for everyone!!! Also, this year October had 5 Sundays, 5 Mondays and 5 Saturdays. This happens only once every 823 years. These particular years are known as “moneybag years”. So whether you want to be #1 or this is a moneybags year for you, remember that it is persistence and attention to detail (virtues we at CDC Commercial try to avow) that is the genius in innovation and success. I hope you enjoy this month’s story.
Google executive Vic Gundotra offered up a memory of now-former Apple CEO Steve Jobs on his Google+ page.
The account gives us a bit of insight into just how hands-on Jobs has been over the years, during which he’s been accused of being a control freak and a visionary.
Gundotra, a senior vice president of engineering who is overseeing the Google+ project, described a 2008 phone conversation and presented Jobs as a person who not only a genius but also cared about details others may otherwise miss.
Here’s Gundotra’s full account, as written on his Google+ profile:
One Sunday morning, January 6th, 2008 I was attending religious services when my cell phone vibrated. I looked at the phone and noticed that my phone said “Caller ID unknown.” I choose to ignore.
After services, as I was walking to my car with my family, I checked my cell phone messages. The message was from Steve Jobs and said call me at home I have something urgent to discuss.”
Before I even reached my car, I called Steve Jobs back. I was responsible for all mobile applications at Google and dealing with Steve was one of the perks of my job.
“Hey Steve – this is Vic”, I said. “I’m sorry I didn’t answer your call earlier. I was in religious services and didn’t pick up.
Steve laughed. He said, “Vic unless the Caller ID said “God”, you should never pick up during services.”
I laughed nervously. After all, while it was customary for Steve to call during the week upset about something to call on Sunday and ask me to call his home was unusual. I wondered what was so important?
“So Vic, we have an urgent issue, one that I need to be addressed right away. I’ve already assigned someone from Apple to fix this tomorrow” said Steve.
“I’ve been looking at the Google logo on the iPhone and I’m not happy with the icon. The second O in Google is the wrong shade of yellow. It’s just wrong and I’m going to have Greg fix it tomorrow. Is that okay with you?”
Of course, this was okay with me. A few minutes later on that Sunday, I received an email from Steve which directed me to work with Greg Christie to fix the icon.
Since I was 11 years old and fell in love with an Apple II, I have dozens of stories to tell about Apple products over the decades. Even when I worked for 15 years for Bill Gates at Microsoft, I had a huge admiration for Steve Jobs.
But in the end, when I think about leadership, passion, and attention to detail, I think back to the call I received that morning in January. It was a lesson I’ll never forget. CEOs should care about details. Even shades of yellow.
To one of the greatest leaders I’ve ever met, my prayers and hopes are with you, Steve.
