Interview: Jeffrey Rogers, President, Integra Realty Resources

By Mike Myatt, Chief StrategyOfficer, N2growth

Thisweek's interview features Jeffrey Rogers, Presidentand COO, of Integra Realty Resources (IRR). Jeffrey is thesenior operating executive and a board member of IRR, the nation'slargest commercial valuation firm with more than 55 offices and 750employees. I had the pleasure of first meeting Jeffrey severalyears ago at an industry conference and developed an immediaterespect for his intellectual acuity and business acumen. Jeffrey isa phenomenal leader with one of the most well rounded executivebackgrounds you'll find in the commercial real estate space. Onwith the interview...Mike Myatt: Jeffrey, for ourreaders who may not be familiar with your background, would youplease share a brief summary of your career history?JeffreyRogers: I have had the fortune of approaching real estatefrom a number of different disciplines. My background includesInvestment Banking, Technology and Law. In my past positions, I wascharged with assessing risk, deploying capital to its highest use,and significantly increasing shareholder value. Integra has been agreat fit for me because it has allowed me to combine all of myskills to assist in doubling the size of Integra over a 5 yearspan. In addition to Integra, I sit on various boards including TNPStrategic Retail Trust, Inc., which is a non-traded publicREIT.Mike Myatt: As President of the nation'slargest valuation firm, you're at ground zero on one of theindustry's biggest issues...what are assets really worth? Pleasedescribe where you see cap rates and values trending in2010.Jeffrey Rogers: We are still in a decliningmarket. More than $2 trillion in commercial mortgages are expectedto come due between now and 2013. However, due to the decliningvalues and lack of financing, many property owners will have a verydifficult time refinancing. Even the money sitting on thesidelines, which is about $300 billion, will not be enough tobridge the gap. In such an environment, values will continue tofall and cap rates will continue to rise in 2010.Compounding theproblem, foreclosures of commercial properties carrying mortgagesare starting to surge. The CMBS sector is experiencing delinquencyrates of more than six times the level a year ago. The economycontinues to sag with increasing unemployment, falling income andconsumer pessimism. Without the demand for commercial real estateincreasing anytime soon, it will take us a while torecover.Mike Myatt: What do you see as yourprimary role as IRR's President?Jeffrey Rogers: Myprimary role is to provide the overall strategic vision anddirection for the company and oversee its implementation. During mytenure at Integra, we have made shifts in strategic direction inline with the external environment and stage of the company'sgrowth. So the process of strategic visioning is iterative and ajob that is never done. At the same time, we have had significantaccomplishments on the operational side. We have built processesand technology to capture the best data in the industry so that ouremployees can do their job better and faster than our competitors.We also expanded our product offerings such as valuation forfinancial reporting and distressed asset analysis.MikeMyatt: Do you have a mentor, and how important was thatperson to you in term of your professionaldevelopment?Jeffrey Rogers: I have been veryfortunate to have many mentors in my life, including pioneers inthe real estate industry. I cannot mention them all, but would liketo mention one, our late Chairman Kevin Nunnink, who passed awayunexpectedly in August. Kevin's professional life touched everyaspect of real estate. Kevin saw the industry changing and the needfor a large national valuation firm and, thus, formulated thevision to found Integra. He was key to my development as weexperienced rapid growth. I encourage everyone to seek a mentor. Inmany cases, a mentor has already seen the challenges ahead of youand can assist you in making the best decisions while learning inthe process.Mike Myatt: What books are youcurrently reading?Jeffrey Rogers: For balance, Ialways read a non-fiction and fiction book simultaneously. On thefiction side, I am close to finishing The Black Swan whichtheorizes that it is impossible to predict rare events outside ofthe realm of normal expectations. I love this book considering thetimes we are in now. The book also discussed how we attempt torationalize black swan events as if we could have expected them.Onthe fiction side, I am reading The Road which is a post-apocalypticnovel about the journey of a man and his son after the US wasdevastated by an unnamed cataclysm. Although the novel leaves youwith hope, it is a warning of how bad the human condition canbecome if we do not change some critical aspects of ourworld.Mike Myatt: What would you say was your"defining moment" as an executive?Jeffrey Rogers:When Integra experienced a spike in assignments from the CMBSindustry a few years ago, it was tempting to direct adisporportionate amount of company resources to that sector of themarket. However, I made sure we remained diversified and investedin building our Litigation, Valuation for Financial Reporting andGovernment practice groups. At the same time, I took our brandinternational resulting in assignments which originated abroad. Wenever had that before to the levels we are seeing today. When theCMBS work dried up, our competitors experienced severe downturnsresulting in layoffs. Integra is still growing today with ouremployee count now at 750, which has increased everyyear.Mike Myatt: What do you see as your greatestleadership strength?Jeffrey Rogers: My greateststrength is to analyze an industry and formulate a vision to becomea market leader. I accomplish this by clearly communicating thevision and inspiring other leaders in the organization to takeaction. The ability to move seamlessly between strategy andexecution, and knowing when to focus on which, has been key to mysuccess.Mike Myatt: What is the toughestleadership decision you have had to make thus far in2009?Jeffrey Rogers: In this environment, mostcompanies are slashing budgets and cutting investment. We made thedecision to invest heavily in enhancing our technology and productofferings. I went against the convention because not only do I seeopportunity in this downturn, but because we are a value-addedplayer in the type of turmoil.Mike Myatt: If youcould give one piece of advice to our readers what would thatbe?Jeffrey Rogers: Everyone is going through avery difficult time right now. However, in difficulty there isopportunity. One should spend time searching for the opportunityand not worrying about the past. This is a time to stay positive,get creative, and make an impact. Our industry and the economy runin cycles. This period will end and we will get through this. Whenthis cycle is over, think about how you want to answer thequestion, "What did you do?"ConclusionAfter reading this interviewit should be no wonder as to why IRR has become the nation'sleading commercial real estate valuation firm. Jeffrey's integrity,leadership ability, and intellect even have the firm growing in theworst commercial real estate market this generation.

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