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LA JOLLA, CA—Wermers Properties is celebrating 60 years in business. The apartment developer and construction company has grown to become one of Southern California's longest-standing, family-run multifamily companies that today tackles projects in excess of $150 million.
Sixty years ago, James J. Wermers envisioned a family-run construction business that has today become an industry leader in multifamily construction and development. GlobeSt.com spoke with CEO Tom Wermers about what has led the firm to success and the lessons he's learned along the way.
GlobeSt.com: What has led to your company's success and longevity?
Wermers: It's an attitude: perseverance. In this business, particularly building and real estate, you have to have a passion for what you're building and developing, as well the people, clients and staff. Like most businesses, we've had our ups and downs, but if you have a long-term vision and are persistent, you will succeed.
GlobeSt.com: What are the lessons your company has learned along the way?
Wermers: The biggest lesson is: Be ready to pivot. Today's market is frothy, and we're very busy in the multifamily space. My experience over the years is that when it is going as it is now, the end is near. it's interesting, but each time it's happened, it's a little less surprising to me. You need to be ready to adjust to the market's demands quickly. Part of that is this is now my third or fourth time at the helm watching this industry go through boom and bust markets. We also limited how much we would do when things were booming. Work is abundant right now, but we limit and focus on the relationships we have with customers and doing what we say we're going to do. That limits the number of projects we take on. In our business, it's about delivery. You have to be able to do that.
GlobeSt.com: Where is the company heading in the future?
Wermers: In the building business—our building company is 60 years old—it's more of the same. Our model is not going to change a lot. We're going to continue to be a contributor or leader in the multifamily market space, and that keeps us full-time focused and busy because the market is changing tremendously. With everything about our business and all the disruptive things from Uber to delivery trucks (e-commerce), we are having to adjust and adjust and adjust to figure out where things are going. It's exciting and challenging, and we still love it.
GlobeSt.com: What else should our readers know about your company?
Wermers: Our company is a family business at its core—not only family by blood, but family by employees. It sounds like a cliché, but this is true of a lot of successful companies: all the senior people have been here for multiple decades, and almost all our clients are repeat clients—we have 100% retention of clients and subcontractors as well. We're a multigenerational company, and many of our clients come from families that did business with my father. This differentiates us from the market. Our tangential business, Wermers Properties, has had quite a bit of focus. We have spent a fair amount of time on the development side of the business and have had success with it.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
