The Importance of Tough Conversations

The toughest thing about tough conversations is that they are tough. They may be hard, but they are effective and efficient. At the end of the day, these conversations will create more trust, instead of decreasing trust. I truly value people who can have tough conversations. It tells me that you think like an owner, take accountability, and want what’s best for the company, not yourself. 

I’ve always wanted Fort to be an inspiring place to work. A large part of this is creating a culture that allows and encourages these tough conversations. Disagreements can exist and different opinions are allowed to exist. It helps create the culture of iron sharpening iron—we will all rise together.

Tough conversations give us a chance to learn, improve, and move on—and do it all quickly. They come in all shapes and forms, but at the core, they come from a place of honesty. When had genuinely, the tough ones are the conversations that will create the most progress, clarity, and growth as you move forward.

There is a quote from IBM’s CEO, Ginni Rometty, that I will never forget hearing:

“Growth and comfort don’t coexist.” If you are in your comfort zone, it’s hard to grow. As soon as you move outside your comfort zone, you grow.

In looking around at my closest relationships, I’ve noticed that these are the relationships where transparency and honesty flow freely, both with the easy stuff and the tough stuff. As long as someone else has to have the conversation for me, I’m cheating myself and those around me. I’ve also learned that if the person receiving the tough information can’t handle it, that’s on them, not on me.

Honest feedback and conversations are a gift to those looking to grow and improve. Even if you don’t like conflict, these conversations must be had, so it’s important to learn how to do them right.

-CJPJ

The Case for Class B Industrial: Cannabis Sector Growth

No matter what side of the issue you stand on, the facts are the facts, and data shows that the use of cannabis, both medically & recreational, is legalizing state by state faster than ever before. At the turn of the century, 63% of Americans were against the legalization of cannabis vs. 31% who were for legalization. Fast forward to 2018 and the tables have turned—34% of Americans are against legalization vs. 65% who are for it. 

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Even Republicans are rapidly converting to believers in the legalization of cannabis. In 2018, the Texas Republican Party amended its platform to include three separate cannabis planks, support for industrial hemp, decriminalization, and expansion of the state’s existing medical marijuana program. It’s progress. 

So what does this have to do with real estate?

In states that have already passed laws legalizing cannabis, growth has occurred dramatically in Class B industrial districts where warehouses and factories are being converted into cultivation / manufacturing facilities and even retail shops. CBRE published a research study in 2017 stating that in Denver, Colorado, warehouse leases signed for use by the cannabis industry exceeded market rents by 2-4x. 

Innovative Industrial Properties (NYSE: IIPR) is up 272.5% in the last 12 months. “IIPR is the pioneering REIT for medical-use cannabis industry. Founded in December 2016, we are the first publicly traded company on the NYSE to provide real estate capital to the medical-use cannabis industry.” (IIPR Website)

At Fort, we believe the cannabis game is still in the very early innings. In fact, we might still be on the practice field. There is a lot of reason for us to believe the tailwinds in cannabis are strong and will be around for many years and decades to come. 

Please keep Fort Capital in mind as an aggressive purchaser of these assets. If you’re a broker, we’d love to tell you more about our Broker Incentive Program for off-market purchases. Please reach out to Hunter Harrison (hharrison@fort-companies.com) or Steve Wolff (swolff@fort-companies.com) for more information.

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-CJPJ