Executive appointment: Why Bayleys’ Lloyd Budd has a focus on fun at work

Tuesday, 24 September 2024

It is buzzing at the Bayleys head office in Auckland’s Wynyard Quarter, and that’s exactly what new Bayleys Auckland chief executive Lloyd Budd likes to see.

The reception area is open with a cafe to one side and tables for small meetings to the other, a layout usually aimed at encouraging interaction. It is filled with many small groups of people, chatting enthusiastically.

It actually seems a little too busy for your average working day in the current age of hybrid work arrangements. And it is, Budd confirms.

The day I’m visiting Bayleys House to interview him is the day before the company’s annual national conference. About 1100 people from around the country are expected, and different groups are already scattered around the array of meeting rooms and space conducting break-out sessions and catch up meetings.

Budd greets many people by name and with a promise to catch up properly over the next day or so, as we order coffees at the cafe, and then find a meeting room to chat.

The atmosphere is good, and Budd, who took on his new role at the start of this year, is buoyant.

The conference is one of the highlights of the organisation’s year, he says. “It’s a chance to get together, network and have fun, and that’s something I believe is important for a productive work culture.”

But Bayleys is New Zealand’s largest full-service, locally owned real estate company, so it seems fair to wonder if the property market’s widely reported downturn might cast a shadow over this year’s event.

There is no doubt the last six years have been a big challenge, Budd concedes. “What with Covid, changes in workplace trends, massive disruption of capital, and now the economic downturn… The industry has been through a lot.”

He cites the fact that last year was the lowest year of commercial real estate sales since the 1990s as an example. But things are changing and optimism is returning to the market, he says.

“The big difference is the Reserve Bank’s cut to the official cash rate, and its impact on the interest rate outlook. With mortgage rates set to get lower, and decreasing inflation, we should see capital start to flow into real assets, such as property.

“That’s left me with a positive outlook for the market whereas a few weeks ago it would have been very different.”

“We are already seeing confidence return with deal volume a lead indicator, and while CoreLogic’s figures show a 2.5% decline from the recent cyclical peak, our latest figures show a positive uptick in listings and deals compared to last year.”

Budd is still young at 41, but is familiar with the ups and downs of the property cycle. That’s because he was just 17 when he first felt the lure of real estate.

It was 2000, and he was in his last year at Palmerston North Boys High. He had never thought of property as a potential career. Instead he had been considering going into either marketing or physiotherapy.

But the school guidance counsellor thought property would be a good fit for him, and encouraged him to apply for a scholarship through the Keystone Trust, then the Biggins Property Education Trust.

“When I went to Auckland for the interview, I’d never been to Auckland before, and had no idea of what to expect, but I was one of three selected. That set me off on a course I would never have gone down otherwise.”

At a related event, he met John Bayley, who founded Bayleys with his father Graham in 1973, and their interaction led to a work invitation for Budd. He went to Massey University in Palmerston North, and did a BBS in property and management, but in the holidays he worked for the Bayleys research team.

“I used to drive up at the end of every term, so excited to get to work in Auckland. My job involved going into every office building in the CBD, doing a spreadsheet of who was on the floor, and then doing the data crunching on it. It was the legwork for the office vacancy survey.”

Once he finished his degree, he moved to Auckland and into a fulltime job at Bayleys. It was only then that he was able to get his first agent's license and move into sales.

Budd maximised the opportunity to learn from some of the “legends” of the business, such as Gerald Rundle and Adrian Burr, and progressed steadily. In 2005 at just 24, he became Bayleys’ youngest franchise owner when he partnered with company leaders to buy the Northland franchise.

He and his co-owners took the franchise from $5.2 million to $8m annual turnover in a two-year period. The market was booming, and it was the best, and steepest, learning curve of his life, he says.

“After about three years, my business partner and I saw different futures. I thought we were set for an epic growth period, but she thought the opposite, and we decided to go our separate ways. As it turned out she was correct on the market, and I got it wrong.”

He had not done an OE so he told John Bayley he would be gone for a year, and jumped on a plane. But in Abu Dhabi he ran into one of his former mentors, Paul Duffy, who helped him land a real estate job there. His year-long OE ended up as a seven year one.

“There were lots of lessons for me because I encountered big cultural differences. I had only lived in New Zealand, so it was fascinating to meet new people from new backgrounds, and build relationships. As a manager, you need to understand different people, and my time in the Middle East taught me how to do that well.”

Budd and his wife, Monica, decided to move closer to home when they were expecting their second child. They lived in Australia for a year before returning to New Zealand in 2015. He was welcomed back into the Bayleys fold, and given the opportunity to reinvigorate its commercial business.

The agency was down to a 23% share of the commercial market, and it is now about 42%, he says. “I’m proud of those numbers. They put us back on top as a commercial agency, and our reach is across the country, not just the main centres, because of our network.”

In 2018, he was named “property professional of the year” by the Property Council, and early this year he was appointed to the chief executive role. He now leads the agency’s residential, projects, commercial & industrial, and lifestyle teams.

While he is new to the role, it is a familiar challenge, as property is always a people business first and foremost, he says.

“Whether you sell a commercial business, or a house, or lease an office, you need to know your market, and be a good connector and problem solver. That doesn’t change, but this role has given me the opportunity to do some things I’ve always wanted to do.”

One of Budd’s goals is to build up the agency’s share of the $1m to $2m residential market in Auckland. Setting up two new offices, one in Pt Chevalier and one in Browns Bay, is part of that, but so is a first ever appearance at the Home Show, and a marketing campaign involving an Audi Q5.

“It’s all about fun, and always learning, and trying new things to target that price bracket. So we are upping our social media game too.”

Another goal is to show a more diverse range of young people that property is a good career to get into. That’s because while there is strong diversity in sales, there is not at leadership level, and he wants to change that.

“Architects, project managers, people coming out of university - it’s a fight to get that talent, and to retain it. But they are our future leadership, and we need to see them coming through more. So how can we attract people into the industry?”

He says the solution will involve addressing real estate’s reputation as a dog-eat-dog industry, reviewing the remuneration structure, and modelling the many different career pathways it offers.

Budd’s passion for not just his industry, but his job, are impossible to ignore. He loves coming into the office because he is working with his mates, and it is a fun environment, not a chore, to be around.

His management style reflects that, and is probably influenced by his sporting background, he says. “There’s a vision, which the team works out together, and then I want people to get out there, have fun, and do it. That’s what I like to see.

“At the same time, my expectations are very clear to the team. If you are not living up to your end of the bargain and fulfilling your responsibilities, then decisions will need to be made. You have to play as a team to win.”

Monthly key metrics are involved, and that can make for uncomfortable conversations. But once people understand it is not about pointing fingers or throwing them under the bus, the better they will deliver, he says.

But his family is his number one priority. His daughter is into netball, and his son is into basketball, and he loves taking them to their various activities.

When it comes to work-life balance, he is fortunate he does not feel pressure either way, he says. “I have seen people struggling with it, but I am lucky enough to be able to pick the kids up when I need to. I can work on my laptop from home, if I need to go to the gym I go.”

A supportive family helps, as does his boat which gives him the ability to “de-frag” on the water. “I enjoy being outdoors, and fishing is my number one way of escaping. It’s a luxury, but I’ve not had as much time for it this year with the new role.”

Despite his good fortune, Budd does have some broader concerns, and housing inequality is a big one.

“If we don’t address it and the gap continues to grow, and we end up with more deprivation and homelessness, that’s not good for anyone. Not for society or the country, or infrastructure, or sustainability.

“So how do we help people? I’m a big believer that we need much more housing supply to make us a better country. We should think big, take out some debt and just do it, build. It’s not a new idea, but we need to do it.”