Ec56108634cc4b598874a13a523052d5

Creating Sustainable, Inclusive Communities

Deodate

8. Decent Work and Economic Growth 10. Reduced Inequalities 11. Sustainable Cities and Communities

Overview

Deodate is a corporate real estate consulting firm based in Pasadena, CA that provides advice and strategies to public and quasi-public entities, corporate/institutional developers, and mid-cap to fortune 500 firms globally. Some which include public agencies, government agencies, non-profit organizations, state departments, large counties, and school districts. Their goal is to help their clients maximize both the potential of their real estate as well as grow strategically to maximize shareholder value, while simultaneously creating sustainable communities, and reducing inequalities.

Authors

Taylor Sherman

Taylor Sherman

Daniel Zegarra

Daniel Zegarra

Faisel Musa

Faisel Musa

School

Loyola Marymount University

Loyola Marymount University

Professor

Ingrid Greene

Ingrid Greene

Innovation

Deodate has created a business model that is built on the foundation of reducing inequalities, and creating sustainable cities and communities, while hiring a diverse workforce. They are a certified California small business enterprise, as well a certified minority owned firm with the California Public Utilities Commision. The demographic of the management consulting industry that Deodate is in is largely made up of fifty-five year old plus, caucasian males. Deodate prides themselves on hiring a diverse workforce to help combat this demographic inequality within the industry. Deodate’s team is made up of under-40 year olds, Asian-American, Hispanic-American, or American backgrounds men and women, making them highly diverse.

Deodate’s innovative advice and strategies are based on creating sustainable, inclusive communities. CEO, Rodrigo Gonzalez, stated that their business model includes providing their clients with data that “allows them to understand and remove preconceived notions that low income areas would not serve their retail use to a profitable state.” Deodate uses data from large retailers which shows that some of their highest earning stores are in high concentration Hispanic, or African American communities, to inform their clients of the potential success in these communities. They pride themselves on being proactive in advising their clients to look into these areas, which could provide corporate tenant investment which in turn brings in jobs, and amenities to areas and communities that wouldn't otherwise have them. Deodate has also taken action in creating sustainable, environmentally friendly communities by partnering with one of the ten largest commercial solar roofing companies in the US, as well as with a company that uses large voltage manufacturing machines and introduced a device that indicates if a machine is using more electricity than it needs. Additionally, Deodate has explored a property-technology platform that detects leaks, to cut down water usage. These partnerships exemplify Deodate’s dedication to creating sustainable communities.

Creating Sustainable, Inclusive Communities

Inspiration

As one of the leading innovators in real estate focused consulting, Deodate is committed to promoting sustainable and equitable goals. The firm has always been committed to diversity and employing workers from all ethnic backgrounds. Deodate is fully owned and managed by minority workers and assists in hiring people from local underrepresented communities. This includes hiring immigrants in large urban cities across America such as Atlanta, Los Angeles, and Philadelphia. From the beginning, these goals have been an integral part of the company’s corporate strategy. Diversity, inclusion, and equal opportunity allow Deodate to stand out from its competitors. The aim is to provide growth opportunities and empower local economies.

Deodate has always used sustainable and equitable practices. These weren’t strategies that were implemented to further profits such as is the case with other companies. They were ingrained with the company’s overall mission from the firm’s inception. According to Rodrigo Gonzalez, “Diversity is a function of the company’s reality.”

Overall impact

Deodate has had more contextual knowledge than other consulting firms in terms of meeting the needs of people from different backgrounds. This helps them make proper decisions when dealing with different communities, such as the Latino community or the Asian community. The company engages with clients to decipher whether a certain project will work for a certain region. They want to create a sense of communal trust. This allows people to ease certain fears such as those of gentrification. It also helps minority businesses thrive. The future profitability of Deodate’s investment vehicles comes from minority areas. The land in these places tends to be cheaper, there is population growth, and a high presence of job centers. This is evidenced by the number of successes Deodate has had in these fields. The impact the company has on local communities is beneficial for all parties.

Business benefit

Deodate has seen large success in the real estate management consulting space by way of their diverse employee background. When asked about the benefits of their sustainable business model, Rodrigo Gonzalez shared that “we [Deodate] have a lot of contextual knowledge that a lot of other consulting firms don’t have … it’s very natural for us [Deodate] to have engagements with clients where they’ll say ‘Hey listen, will this market generate sales within the Asian American community?,’ we have staff that say ‘we think it will’ or ‘from personal experience, we don’t think it will.’” According to Rodrigo, diversity brings about a widened perspective to assess different markets that require unique insights in order to maximize investment. With an entirely minority workforce, Deodate has been able to provide unique angles on real estate investment decisions that ultimately translates to revenue growth for the firm.

Deodate’s minority background also helps to engage with under-served communities. Because Deodate’s workforce is either Hispanic, Asian, Hispano-American, Asian-American, etc., their employees are able to effectively communicate and interact with people of similar backgrounds throughout the areas they serve. A major concern within many minority communities is the fear of over-gentrification. Deodate, however, is able to mitigate this concern and persuade the individuals within these communities to consider and observe the positives associated with large corporate investment. This successful community relationship management effort is possible, in large part, because Deodate’s business model integrates diverse employee backgrounds. Successful negotiations between under-served communities and large corporations eyeing investment in these areas is a win for the corporation in terms of expansion, a win for the local community in terms of stable jobs and capital injection, and a win for Deodate in terms of advisory fees and healthy client/community relationship management.

Social and environmental benefit

Due to the nature of their business model, Deodate delivers positive social impact in the form of reducing inequalities. As previously mentioned, Deodate’s workforce is composed entirely of minority employees (men and women) under the age of 40 years old. In an industry dominated by 55+ year old, caucasian males, Deodate’s diverse workforce is a testament to their commitment in providing opportunities to under-represented and under-served populations. Additionally, Deodate just recently launched a real estate equity fund, which encompasses several progressive social initiatives. For example, the fund's ESG charter outlines that 40% of all contracted and subcontracted work on newly purchased facilities must come from minority-owned businesses. Moreover, Deodate strongly encourages their tenants to implement a local-hire program with the hopes of assisting the local economy with employment opportunities.

As far as Deodate’s environmental impact, they have done a commendable job of stimulating and implementing positive change. Deodate prides itself in, at one point, representing one of the ten largest commercial solar roofing companies in the US. Through this partnership, Deodate and the solar roofing company installed solar roofs in large manufacturing facilities which reduced electrical power intake and opened the conversation for property owners to consider further green initiatives that positively impact both the business and the environment. Another Deodate environmentally-conscious driven partnership came with a company that used large voltage manufacturing machines. Deodate introduced a device that would indicate if a machine was using more electricity than it needed. The company was able to use this device to identify faulty manufacturing machinery and optimize their electrical usage. Doing so helped the company reduce unnecessary expenses which drove bottom line growth. Recently, Deodate has explored a property-technology platform that implements a mini turbine applied to the main meter in individual apartment units to detect, on a unit by unit basis, any leaks. In a drought-stricken state like California, this sort of technology could be helpful in conserving water, which further showcases Deodate’s commitment to have a positive environmental impact.

Interview

Rodrigo Gonzalez, CEO

Photo of interviewee

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Deodate

Deodate

Pasadena, US

Business Website: https://www.deodatecorp.com/

Year Founded: 2013

Number of Employees: 11 to 50

Deodate is a corporate real estate consulting firm based in Pasadena, CA that provides advice and strategies to public and quasi-public entities, corporate/institutional developers, and mid-cap to fortune 500 firms globally. Some which include public agencies, government agencies, non-profit organizations, state departments, large counties, and school districts. Their goal is to help their clients maximize both the potential of their real estate as well as grow strategically to maximize shareholder value, while simultaneously creating sustainable communities, and reducing inequalities.