Navigating Real Estate Finance: Insights from Kwasi Benneh

In today’s ever-evolving world, Commercial real estate is becoming more and more of a dynamic field. It is defined as “property used for business activities, including office buildings, retail stores, industrial facilities, and hotels, rather than for residential living”. It is really important for companies in generating income as it facilitates activities such as leasing. Professionals in this field balance precisions with creative problem-solving making it very challenging, but rewarding. To help our readers understand what it takes to succeed in this space, we spoke with Kwasi Benneh, who is the managing director of commercial real estate finance at Morgan Stanley. 

Finding Opportunity in Complexity

We started by asking about some challenges he’s experienced in his field. When asked about one of the most challenging, he recalled the financing of a Hawaii Resort. 

“We led the financing for a Hawaii resort which was challenging because of the uniqueness of the asset and the profile of the cashflows,” he explained. “The biggest takeaway from that experience was the realization of the diversity of collateral types financed in the Commercial Real Estate industry.”

He emphasizes how commercial real estate covers so many things, from data centers to hotels and warehouses. Each property type carries unique risks and cashflow patterns, and understanding those different characteristics is key to structuring a successful deal. 

The Role of Technology and Data

We also wanted to ask about the role of technology in his field. Especially in the world of finance, technological advancements are becoming more lucrative and important for experts to understand if they want to succeed. We asked how technology/data-analytics are shaping decision-making in real-estate finance today and he responded with:

“Technology is playing a significant role in real estate finance,” he said. “The valuation of real estate as an asset class involves a lot of data inputs collected from a variety of sources. The ability to synthesize the data using technology and data applications is critical to the ability to scale financing in the real estate industry.”

From machine learning models that predict property values to software platforms that automate underwriting, the integration of data tools is allowing firms to make faster and more informed investment decisions.

Skills That Matter Most

We then wanted to try and take some advice from Mr. Benneh. He emphasized that there’s no single “correct” path into finance or real estate. Professionals in the industry come from a wide range of academic backgrounds, but a few traits stand out as universally important.

“The most important traits are curiosity, quantitative fluency, and perseverance,” he noted.

Curiosity is important because it drives professionals to explore new markets/ideas. Quantitative fluency ensures they can analyze financial data effectively. And perseverance, which can typically be overlooked, helps them navigate the inevitable challenges of dealmaking and market volatility. All three of these qualities piggyback off of each other, so it is important to manage all of them.

Advice for Students

He also provided some advice for students hoping to understand complex markets like CRE lending. Mr. Benneh recommends starting small but staying consistent.

“Given the availability of resources online, students should read as much about the industry as possible and keep up with articles that outline developments in the industry,” he advised. “It’s also a good idea to reach out to current participants in the industry for guidance.”

Learning for experts can be very important because it can give insight that could be hard to find online. Reaching out on platforms such as LinkedIn or members of your community could be a good start.

A Final Word of Financial Wisdom

Lastly, when asked what advice he wishes he’d received earlier in his career, Benneh kept it simple:

“Be patient.”

In industries driven by long-term cycles, patience is a competitive advantage. Success in finance often comes to those who combine discipline with a long-term perspective.