Much in the Russian market has changed since the wild early ’90s, when Preston Haskell, founder of Colliers International real-estate agency, moved from the United States to Moscow. But as he says, Russia is still a land of great opportunities.



The Leader: What were the major difficulties you came across in Russia? How did you deal with them?

Mr. Haskell: When I moved to Moscow in early 1994, I knew that it would be difficult. And once I had gone through the process of establishing an office, I recognized that I was taking on the greatest challenge of my life. Whether the challenge was finding business supplies, dealing with contracts, or locating basic living essentials, each day brought a new test, one that needed to be overcome quickly. I dealt with these challenges by meeting them head on, and today, eight years later, I’m still here.

The Leader: What was Russian business culture like in those times?

Mr. Haskell: Wild. There really was no business culture in the early ’90s. It was every man for himself and only the strong-willed or well-connected survived. I’m proud to be part of a group that was able to succeed here through hard work and determination. In reflection, it was an enormously challenging and exciting time to be doing business in Russia. One of the main cultural aspects that was practiced then and today is doing business by building positive and strong relationships, which is an encouraging characteristic in any market in the world.

The Leader: What was the initial foreigner-to-Russian ratio in the company? How has it changed?

Mr. Haskell: When we first opened our office in Moscow, it was 50 percent. It’s hard to imagine, but in the early days there really was no commercial real-estate market. Procedure, practices and leases were all brought to the market by foreigners. At that time, we were developing the market, growing with it and, of course, hiring more talented local employees as needed. As the market has become more sophisticated, the need for expatriates has become less vital at Colliers. Today, we have 75 employees, of whom only three are foreigners.

The Leader: Have you ever felt like leaving Russia and business here and going somewhere else?

Mr. Haskell: Never, not with the weather we have here! Seriously, at no point in my time here did I think of leaving. As long I continue to be challenged, and am needed, then I will stay.

The Leader: How long are you going to stay here?

Mr. Haskell: Forever, or as long as they continue to renew my visa! Russia is a paradise for an entrepreneur, and as person who loves to create and build businesses, this is the place to be. I have been involved with many businesses to date, and I have many more that I would like to explore. To do so, I need time — so I have no intention of leaving.

The Leader: Is your company’s business mostly for Russian or foreign companies?

Mr. Haskell: Today, two-thirds of our business is with Russian companies. That’s certainly a turnaround from when I first came to Moscow and worked primarily on behalf of the foreign business community. I believed then, and it has come to pass, that Russian companies would drive the future of the commercial real-estate market. After the crisis we witnessed many Western firms downsizing their office space and taking a very cautious view toward real estate. It was at that time that we saw the noticeable increase in Russian activity that continues today.

The Leader: What kind of educational background is preferable for a career in real estate?

Mr. Haskell: The best real-estate professionals are those who come to the business with a diversified background and an entrepreneurial spirit. Education is important, but to be truly successful in real estate you must have strong interpersonal skills and a desire to succeed.

The Leader: What do you think of the business centers and shopping malls being built in Moscow? Do they comply with international standards?

Mr. Haskell: On the market today, we are witnessing a surge in the development of shopping or retail centers. Are they at international standards? No, but they are getting there. Currently, we are acting as predevelopment consultant on several retail projects. We advise on the concept and tenant mix and provide marketing and leasing and, ultimately, we can serve as a property manager. The days of building a center and hoping customers just come along are gone, and only through the support of professional consultants will we see shopping centers match those in the West.

The Leader: What is the best deal Colliers International has had in Moscow?

Mr. Haskell: They have all been good experiences. To date, we have transacted almost 400 leases or sales and, if I had to pick, I would say two in particular. First, the pre-lease of 6,000 sq. meters to Arthur Anderson at Riverside Towers in 1996. Literally, there was nothing to show them but an empty lot, but through perseverance we pre-leased them the building. The second would be leasing 9,000 sq. meters to PricewaterhouseCoopers, the largest-ever office-lease transition on the market. There is a lot of work that goes into every deal, large and small, but ultimately it’s the large ones that create lasting memories.

The Leader: What part of the real-estate market is growing most rapidly?

Mr. Haskell: Right now, retail is white-hot and leading the market. We are working on a 38,000 sq. meter hypermarket, Otradnoye, where we signed a 10,000 sq. meter deal with Perkrestok. This project, along with others, points to a bright future for retailers and consumers alike. The residential sector is also gaining momentum, apartment sales in particular.

The Leader: What do you do as general director of a real-estate firm?

Mr. Haskell: It varies from day to day, but my responsibilities are to oversee the operation of our Moscow, St. Petersburg, Kiev and Almaty offices. In addition, we have a joint venture in the Baku market serving many of the oil and gas firms operating there. I’m very fortunate to have dedicated and hard-working colleagues who make my job easy.

The Leader: You have been engaged in so many business activities. What else would you like to do?

Mr. Haskell: Many things, but if I told you I would give my competitors a leg up! I have started different businesses, from real-estate to office-furniture supply to restaurants. And I see many more opportunities in this market.

A project that I’m currently working on of a non-commercial nature is setting up a summer camp for children. I have a site outside Moscow in which we will have a traditional camp for kids to get a well-deserved break from the city. I firmly believe that to be part of a successful community, one has to give back to it. This is my way of giving back to a place that has given me so much.

The Leader: What would you change here in Russia, in the economy, in the culture, etc., to make things better and business more profitable?

Mr. Haskell: The one thing that I would change is the pace at which reforms take place. Reform is needed, from taxes, to investors’ rights, to corporate governance. These issues and many more have been debated extensively, and progress has been made, but not quickly enough. The good news is that we are moving forward, and as an entrepreneur and an incurable optimist, I see more positive changes occurring in the near future.