Education: The Great Equalizer
"Education then, beyond all other devices of human origin, is the great equalizer of the conditions of men...” Horace Mann
Horace Mann, pioneer of American public schools in the 19th century, called education the “great equalizer of the conditions of men,” yet there are still gaps in education--particularly in the commercial real estate industry--that need to be filled to create a path for success for minority individuals.
Limited educational opportunities and high debt balances contribute to the challenges for people of color.
Limited access to educational opportunities for minority individuals can be traced back through American history. Even after receiving a college degree to increase their financial stability and wealth, many minority individuals find their wealth after college declines due to providing financial support to parents, which is less common among white individuals. Additionally, minority students assume student loan debt at a greater rate than white students, and borrow more. Black families are 1.3 times more likely than white families to have student loan debt, and they have balances that are 1.7 times higher than those of white families.
Create an article to link to about the historical timeline that contributed to the wealth gap and limited access to education.
The Commercial Real Estate Diversity Divide
Real estate is key to building wealth, and historically, the commercial real estate industry has lacked diversity, and still does today. 76.2% of jobs within the industry are held by white men and women. (source: “Confronting Diversity Woes in Commercial Real Estate,” Retail Solutions Advisors.) The industry is often categorized by the phrase “go to who you know,” meaning those within the industry tap into their networks to seek out a mentor, advance their careers, find investment deals or raise capital. This paired with the predominance of white employees in the industry perpetuates limited diversity and opportunities for minority employees to advance.
Greater Diversity Equals Better Financial Performance
Creating a more diverse commercial real estate industry is not only critical to creating more equitable opportunities for people of minority races, it can also improve financial performance and profitability.
According to a 2018 McKinsey report, an analysis of 1,000 public companies found that those in the top quintile for racial and ethnic diversity were 33% more likely to have superior financial performance.
Along the same lines, a 2018 Boston Consulting Group report found that companies with above-average management team diversity reported higher innovation revenue than companies with below-average leadership diversity. The benefits of diversity don’t stop at financial performance. Studies show that diverse firms are also twice as profitable as those that are not diverse.
Casoro Group Education Foundation seeks to increase the pipeline of diverse commercial real estate professionals through education.
Casoro Group Education Foundation helps students in under-served and under-represented communities have access to opportunities that close the generational wealth gap regardless of race and economic background. Through their E4 Approach, Casoro Group Education Foundation has the ability to create more knowledge workers in the industry by influencing and connecting students through each phase.
The foundation provides funding to post-secondary schools like Historically Black Colleges and universities (HBCU) to create coursework concentrated in all aspects of the commercial real estate enterprise. Students develop the knowledge, analytical and communication skills needed to succeed in the industry. Integrate that with valuable industry connections and relationships gained through internships and mentorships positions graduates better for increased job offerings and earnings.
Types of Commercial Real Estate Careers
To find out more about Casoro Group Education Foundation, how you can help, or to donate, visit www.cgeducationfoundation.org.