The early Catholic Church identified seven mortal or “deadly” sins as mankind’s gravest transgressions. Can you name them all? Over the centuries the original Latin has been replaced by the vernacular, and in some cases the original meaning and interpretation of specific “sinful” behavior has been modified, but for our purposes today the Seven Deadly Sins are:
- Wrath
- Greed
- Gluttony
- Sloth
- Pride
- Envy
- Lust
Don’t ask me why, but lately I’ve been reflecting on this classic understanding of human behavior. Regardless of your religious convictions, few among us would disagree on the gravity of the “Sins” and society’s interest in protecting its members from its worse side. Fortunately, for every sin there is a corresponding virtue that we can all aspire to and in the practical world of commercial real estate it may be best to reflect on this, especially during such challenging times for the industry and our economy as a whole.
Wrath is an apt description for the blinding rage that many of us experience at some point in our business lives. People don’t always have the capacity to “do the right thing”, and when the screws are turned on you it can be infuriating. Commercial real estate deals often develop some emotional baggage as they progress and it is not unusual for someone to lose his or her temper along the way. (Mea culpa – I am absolutely guilty of this.) But when your temper gets the best of you, chances are you just lost whatever it was you were trying to achieve. Better to embrace the virtue of Patience and keep your eyes on your objective.
Greed and Gluttony are sickening things to bear witness to and often go hand-in-hand. Greed, also referred to as Avarice (which sounds so much more damning) 
can be as blinding as wrath when it reveals itself in the deal process. If you believe that Gordon Gekko’s (portrayed by Michael Douglas in the 1987 movie “Wall Street”) famous line that “greed is…good”, you may want to think again. Too many times otherwise intelligent people will lose a deal because they held out for a perceived value that may not be attainable. Or, in the case of commercial tenants, were excessive in their requirements for leasing concessions or attempting to achieve an unworkable lease rate. Brokers too can be guilty of reaching beyond what is customary in a market, or worse, attempt to steer a prospect to a property with a more favorable commission structure. Gluttony, while typically associated with over-indulgence or excess, can be found in business situations where a party can be so over-the-top in their demands that their behavior becomes truly piggish.. Dealing with greedy gluttons is no fun in business or elsewhere. Perhaps recognizing and acknowledging these damaging traits in ourselves will lead us to embrace the virtues of Charity and Temperance in our everyday lives.
Sloth is a sin that one typically wouldn’t associate with a commercial real estate professional, or frankly any business person in today’s economy. With every business fighting for scraps of market share for the past several years, anyone that had a slothful disposition is probably no longer around. The interesting thing about Sloth is that the corresponding virtue is Diligence. Diligence comes in varying degrees, and while very few business people can be accused of laziness, it is hard to deny that some are more diligent than others. Are your people and your representatives working as hard and as well as they could?
Pride and Envy often go together, especially in real estate. Oftentimes we’ll hear the comment that so-and-so was pretty proud of his building. This is never a good thing. Much like Greed, Pride can move us away from a realistic value e.g. my building is better than the building next door or my kid can beat up your honor student. Likewise, Envy can reveal itself in a 
number of different ways. We typically encounter envy when a building owner relays to us what a comparable property on his street sold for in, say, 2006. That number is forever burned into his brain and despite the fact that the entire world has been in a financial crisis ever since is immaterial.
His building is exceptional. Envy can also be witnessed amongst tenants, particularly tenants in the same complex. When one tenant brags to others about the drop-dead deal he achieved, misunderstandings sprout like weeds. Lease deals are like snowflakes, no two are alike, and timing, market conditions and underlying financial risk change with each transaction. Being envious of the last sale or someone else’s lease deal is damaging and unproductive. The corresponding virtues for Pride and Envy are Humility and Kindness. Frankly, it’s not too hard to be humble in today’s economic environment and kindly congratulating your neighbor for their good fortune is a lot better than harboring jealousy and resentment.
Finally, there is Lust. If you are encountering Lust in your business activities and commercial real estate deals you either:
a). have watched too many recent episodes of Mad Men, or
b). you work in a much more interesting office than I do.
And that is all I have to say about that.
If you’ve taken the time to read this, I wish you the best in your business and personal life. By recognizing the inherent weaknesses of human nature in ourselves, and striving to do the right thing, we can all work together to build better lives in our neighborhoods, cities, and our nation.
by:
Tim Bahr
704-375-1000
Email Tim
