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One-On-One
Angling for Balance

It's been one year since Duke Realty merged with Weeks Corporation. In that time, under the leadership of CEO Thomas Hefner, the two companies have been successfully blended and the firm grew from eight to 13 markets and has had four quarters of solid growth.

Portfolio:What merger-related obstacles did you have to overcome to achieve that growth?
Hefner: We had to merge two cultures so that everyone feels like part of a team. Then, since Duke had been in multi-cities for over 20 years while Weeks had only been in multi-cities for a few years, some of Weeks' people had a lot of catching up to do in terms of diffusing the decision-making process.

Portfolio: How have you developed relationships with clients in these multiple markets?
Hefner: We cross-sell in our markets. For instance, one client signed seven leases in seven different cities. First, you do a very good job for the client. Second, you ask them what locations they need help finding facilities. And, third, the staff uses our computer system to find which cities we're doing business in.

Portfolio: Duke-Weeks was one of the founding members of Broadband Office Inc. What prompted you to get involved? Do you anticipate participating in additional technology initiatives?
Hefner: We got in to it to provide our clients with a better, cheaper, service. On top of that is the opportunity to take Broadband public. From an ancillary service standpoint, utilities, in addition to telephony, should generate the most cost savings to our clients as we aggregate services, while still creating revenue for us. In addition to experimenting with aggregating utility services, five members of our executive team have formed a technology committee to research new ideas.

Portfolio: Do your dot-com tenants have special technological needs?
Hefner: Our idea of dealing with the new age economy is to do transactions like we did with the The Gap, where we built a $130 million project, which they will own, that is part of their e-strategy in Columbus, OH. When we're negotiating with start-up companies we make sure that we're getting security for their leases.

Portfolio: As the Chairman and CEO of a leading real estate company, what is your greatest asset? Your greatest challenge?
Hefner: I am focused, I am relentless. I can understand fairly quickly where the consensus of our management team is going. On the outside, I am perceived as less of a leader and more of a dictator. They misinterpret my intensity and focus, but our track record and how long our team's been together speaks to that. My greatest challenge is patience.

Portfolio: How did growing up one of eight children in a Midwestern family affect you?
Hefner: You take nothing for granted. You wake up a little nervous every day.

Portfolio: Do those experiences influence the way Duke-Weeks is operated today?
Hefner: Yes. You tend to take nothing for granted. In our business when somebody gets fat, dumb and happy it generally means it's the beginning of the end. You have to be unrelenting and you have to constantly improve your business. Your game's only as good as yesterday.

Portfolio: We understand you enjoy hunting and fly-fishing. What is it about your personality that makes these activities appealing to you?
Hefner: I feel sorry for people who have to have the radio blaring all the time. I think you have to have some solace time, some quiet time. I go pheasant, grouse, Hungarian partridge hunting. It's not about the bag, it's about the process. My 14-year old son got me interested in fly-fishing when he was eight. He's very good at it. He's better than his father. I found that fly-fishing and bird hunting are a lot alike because like stalking birds, you're also stalking fish.

Portfolio: How are these traits carried over into your daily business activities?
Hefner: I think it just gives me some time away to reconnect with nature. You have to have a balanced existence. I feel sorry for someone whose entire life is tied up in the workplace. I've got a balance in my life where I selfishly give myself, my wife and my kids some time. At the leadership level, people can get that out of whack if they are not aware of its importance.

Portfolio: What is your vision of the future for Duke-Weeks Corporation?
Hefner: We are an office/industrial value creator and we've staked out our territories in the Midwest and Southeast. I think we're going to have one of the most recognizable brands in the United State over the next 50 years.


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