Success in the real estate market looks different on everyone and requires a combination of skill, risk tolerance, and sometimes sheer luck to achieve. The difference between a good career and a great career in real estate is nearly intangible, but the career of Floridian Real Estate Mogul Stephen Bittel is a good place to start. While reviewing Bittel's career, it's difficult to pinpoint exactly where that "it" factor lies. Is it the sheer boldness and confidence in taking on new ventures early in his career? Or his passion for the community he grew up in? Or perhaps it's his ability to forecast the trends that will shape the future of real estate? As is the case with most successful leaders, it's not just one quality that differentiates him from competition.
Its often said that what separates good from great leaders is an absolute sense of purpose. With Bittel for example, a sense of purpose is evident. As a Miami native, Bittel's values are intrinsically aligned with the community's. He applied this set of values to his education at University of Miami School of law and sought out innovations that he could lead with in his career. One such opportunity arose in the form of being awarded the Watson Fellowship where he embarked on a year of travel to study the motivations behind European Investment in the United States. The private banking model that he witnessed while working with investment advisors and bankers throughout Europe inspired him to replicate the type of one stop personalized service to high net individuals.
When founding Terranova Corporation in 1980, he made sure to incorporate his personal values in determining the founding principle of the company. In a recent article written by Bittel and published on Thrive Global, he expands on the values that drove him to create his own company. He writes, "By maximizing the value of business through real estate, I was able to establish trust, forge professional relationships, and leverage profit for tenants on a long-term basis. This was the founding principle of Terranova Corporation, and a personal mission statement that propelled my leadership."
Going even further, he also explains what values he prioritizes in order to maintain flourishing long term relationships. Running his company with principles of complete transparency, trust and understanding between commercial property operators and tenants demands that at times principle comes before profit. This kind of sacrifice is what it takes to successfully ensure that the message conveyed to clients, partners and the general public is one that aligns with a company's intended mission statement, he says. By providing such a personal relationship with tenants, his reputation began earning him the trust of formidable business owners. As these relationships flourished and his assets grew, Bittel was able to create lasting community change.
By tirelessly working to keep Terranova in alignment with its core values, Bittel has developed a positive relationship with the community and its leaders. This relationship has granted him the platform to be able to have more of an impact in his hometown. Experts like Bittel provide a voice for trend forecasting and can use this voice to impact a community's ability to thrive under huge cultural changes. For example, Bittel recognized that the rise of online shopping culture necessitated a change to the evolution of traditional commerce. So, he set out to create a shopping experience that provides consumers with a reason to leave the house to shop, even if they don't have to. Following this foresight, Terranova set out to modernize southern Florida's premier shopping destinations.
After purchasing various properties in some of the largest property deals in Florida history, local governments began funnelling money into projects that would facilitate in creating one stop experiences to boost the local economy by encouraging in person spending. In an interview with Coral Gables Magazine in 2019, Bittel commented that "the Streetscape project has really triggered what we believe will be the renaissance of the community, and Miracle Mile really is the core of the community." Over a year has passed since this prediction and once again his forecasts rings true.
Bittel's skill around cultivating relationships definitely serves as an essential building block to an extraordinary career, but his ability to grow and learn from failure is just as significant. Bittel iterated this sentiment when asked about failure in a recent interview for Ideamensch. As is the case with most leaders, he admits that there have been a lot of failures over the years. He says, "Good money after bad to try to prove yourself correct is always a losing strategy. We moved on from unanchored strip shopping centers to anchored ones early as a risk mitigation strategy, and it worked. Next, we moved out of big-box anchored properties to urban retail to avoid what we thought was a coming collapse. On our urban strategy, we retired almost all of our debt to create a more forgiving capital structure, that has been a blessing during COVID." Given the precarious nature of the high risk bets he has taken in his career on commercial real estate investments, it's seemingly crucial that he has a growth mindset around failure. E-commerce could have been a destructive force for Bittel's business, however his growth mentality around threats to his success allowed for creative solutions that led to even greater success. And as a result of his anticipatory pivots, Terranova and the surrounding community grew.
Despite Bittel's expertise in anticipating hurdles, he definitely could not have foreseen the challenges that a global pandemic would bring. Never one to back down from a challenge, Bittel and his team at Terranova have stepped up to the plate as the community looks for ways to boost the economy. To help small businesses regain foot traffic and increased activity, and simultaneously fill vacancies created by long-term shutdowns, the Lincoln Road Business Improvement District launched a pre-holiday pop-up shop program. Terranova once owned thirty percent of the retail space on Lincoln Road, but now serves as a co-owner and managing member after taking on new partners. With the goal of keeping the street as occupied as possible, Bittel is charging less for pop-ups than the current asking rates. His lower asking rate of $80 per square foot for short-term leases versus $250 per square foot for annual contracts is exemplary of the values he initially founded the company with.
All in all, there is no one single influence that led to Stephen Bittel's success in the exceedingly competitive market of commercial real estate. His mindset around failure and his passion for his community certainly contributed. However, it's in his unwavering commitment to his foundational mission statement that has garnered the community trust, relationships and employees needed to take a career from good to great. Commenting on what it takes for a company to withstand 40 years like Terranova has, Bittel writes "both personally and professionally, your company's mission statement will be your guiding principle. Through inception and beyond, you will find those goals and incentives tested, and you will garner opportunities to stray from the plans you initially forged. Thus, it is vastly important to iron out the most important mission statements for your business. Whether your goals include maximizing earning potential for clients, maintaining highly ethical practices in the face of challenging times, or establishing long-term professional relationships, solidifying these guiding principles will help to keep you on the right path in the future."
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