​On Wednesday February 19th, ULI New York’s Young Leaders Group gathered at JP Morgan Chase and Co.’s Midtown headquarters for an informal conversation with David Arena, JPMC’s Global Head of Real Estate, as part of YLG’s Secrets of Success panel.

​Responsible for JPMC’s global real estate portfolio, Arena leads a division that oversees 6,500 properties in 62 countries across 2,500 cities, owns over $19,000,000,000 of properties and is the world’s fourth largest tenant. Arena though still considers himself the son of a Westchester milkman, turned video-dating service entrepreneur, turned painter who fell into real estate through a series of happenstance and connections.

​During a candid and lively Q&A session Arena shared what he’s learned over the course of his 4 decade career in real estate.

Q: How has the industry changes since you began your career?

A: Capital was much harder to come by and you couldn’t get equity or debt as easily, which is why the big developers and owners were largely insurance companies such as Prudential Life, Equity Life or Met Life. The Savings and Loan Crisis and the popularization of REITS allowed new sources of capital to flow capital into the industry.

The real estate market was also much more fragmented and inefficient. The internet and technology has made real estate much more efficient, especially globally.

Q: How do you identify whether or not someone will make a good long-term or short-term business relationship?

A: That’s definitely the wrong way to approach relationships with people. You should be kind to everyone and not think of people as someone as only a short term relationship. You never know when you may cross paths with someone later in your career or in business.

In terms of identifying new opportunities for business relationships, one thing I do is read the Wall Street Journal and circle the names of people or companies i want to work with. Then think how can I make that person money or work with them? Then how can I use my network and six degrees of separation to meet that person.

Q: How do you translate the highly localized industry of real estate globally?

A: Real estate is highly localized, being able to recognize patterns and trends across the markets is key. It’s important to know the mechanics of the deal and pricing. Along with bringing in the right local team and partners and making sure they know you’re serious and going to close. When working globally there’s a similar cohort of names and companies that work globally and you cross path frequently and there’s often the six degrees of separation. interpreters and gifts are also very helpful.

Q: What can you tell us about JPMC’s new headquarters at 270 Park Avenue?

A: We were bursting at the seams at the former 270 Park Avenue. Aside from the aging infrastructure we were at double the capacity the building was designed for. We weighed our options and ending going up with the most economical decision.

You can see we’re currently demolishing the existing structure, over 91% of which is being recycled. What you can’t see is all of this if going on while building on top of the LIRR East-side Access tunnel and the foundation-work will soon rise. It’s major win for the construction industry and tremendous validation of the Midtown East rezoning.

Q: Any other tips or secrets of success?

A: Pick an established company with resources that you’ll learn from and recognition that you can take with you as you move throughout your career. Or pick an smaller entrepreneurial company where you will learn a lot first hand.

Always be learning and learn a specific thing well. Your ability to be commercial and make money and turn a profit for your company will make you valuable to your employer.

Most importantly always be humble. You’re not the center of the universe. By staying humble and not being stuck in your own way you’ll be more open to opportunities that may come your way. Remember that everyone makes mistakes. Strive to be magnanimous and aspire to noble actions in service to others.

​Special thanks to David Arena for his time, candor, insights and to J.P. Morgan Chase for hosting the ULI New York’s Young Leader’s Group as part of our Secrets of Success program series.