Who are real estate’s true architects?

COMMENT I always love a read of Warren Buffett’s annual note to shareholders – who doesn’t? – but there were a fair few paragraphs in this year’s letter that really got me thinking. The note was something of a love letter to Buffett’s long-term business partner Charlie Munger, who died in late November last year, aged 99. Buffett credits Munger as his conscience. The steady hand who “jerked me back to sanity”. He says Munger was the “architect” of Berkshire Hathaway, with Buffett the “general contractor”. “In the physical world, great buildings are linked to their architect while those who had poured the concrete or installed the windows are soon forgotten,” wrote Buffett. “Berkshire has become a great company. Though I have long been in charge of the construction crew; Charlie should forever be credited with being the architect.” I loved this, not just for the built environment connotations, but because it got me thinking about the “architects” we might have in our own lives who need championing a bit more and perhaps the “architects” we have in this industry that deserve a bit more credit for creating something special. I know I’m always banging on about how we need to be better as an industry when it comes to talking about the benefits the built environment delivers and the important role real estate plays in delivering value for UK plc, the population and the planet, but Buffett’s comments got me thinking that maybe we’ve got all that already. We’re just not recognising it. Let’s take business improvement districts as an example. In this week’s EG Interview, regeneration specialist Ruth Duston talks about how BIDs have transformed parts of London for the better. But, Duston tells us, there is so little understanding as to the power that BIDS have to make positive change that perhaps we’re not making the best of them. Are BIDs an underappreciated architect of the UK built environment? “I’d like to think we make an impact that leaves a legacy in London, that builds on what our future generations need from a more sustainable and resilient city,” says Duston on page 16. “I do it because I love it, because of my regen background. It’s all about opportunity and giving people chances.” What other architects are there in our sector that we’re just not utilising to the best of our abilities? We often turn to the likes of the RICS and the BPF to be our Charlie Mungers, but who else out there is already creating the frameworks and the designs for a better, more powerful and, dare I say it, more profitable real estate sector? I turned to the consultancy community as I thought about this. This week, we publish our annual leaderboards showing which agents advised on the most deals over the course of 2023. In a year where we’ve – us journalists in particular – been talking about how depressed the market was, it was encouraging to see some sizeable numbers announced. CBRE topped the rankings with more than 17.5m sq ft of leasing deals, with JLL and Cushman & Wakefield nipping at its heals with more than 13m sq ft of acquisitions and disposals each. With this level of activity occurring in a year where business has been undoubtedly hard – those three agents have all published full-year results recently, showcasing just how tough it has been – should we credit our agency community with the “architect” badge? Are these dealmakers creating a market that helps drive the sector and our country forward? Of course they are. So while Buffett may credit Munger as the architect behind the success of Berkshire Hathaway, I’m going to steal this moment for my own little love letter. This one is for you. It is every single person in this sector who does their bit – in whatever stage of the process, whatever geography or sector – to build the UK back up, brick by brick.