Bradley Byrne: [00:00:00] Hello and welcome to the Mobile Matters Podcast, powered by the Mobile Chamber, where we’re diving deeper into important topics that make a significant impact on Mobile’s thriving business community. I’m your host. And president and CEO of the Mobile Chamber, Bradley Byrne. Today, we have a special episode as we welcome Pratt Thomas, the president of Merrill P. Thomas company, Inc. Mobile’s 2024 small business of the year. We’ll talk about his family’s business, its impact on our community, and what’s next for the company. So Pratt, welcome to Mobile Matters.

Pratt Thomas: Thank you for having me.

Bradley Byrne: So, um, Merrill P. Thomas Company has been a fixture in Mobile’s commercial real estate landscape for more than 30 years.

Tell us a little about the company’s history and how it all started.

Pratt Thomas: Well, the company was founded in 1992 by my father Merrill. And he [00:01:00] founded the company after a career with Falmer Associates. And they, he started the company as, really as a development company. And was Going to pursue super K marts and was working on a deal in Pensacola when he first incorporated.

And that’s when super Kmart filed bankruptcy literally the day before he was set to sign a lease to begin construction on a Kmart in Pensacola. And so he. He pivoted and began doing development work across the Southeast region. I joined the company in 2008 after a banking career at Regions Bank and we finished three development projects in 2008 and then the Great Recession happened.

We started building a [00:02:00] brokerage, or building the brokerage side of the business at that point. And now, today, we, we do development, brokerage, and, and property management services for small businesses and, uh, government entities across the Gulf Coast states.

Bradley Byrne: Well, a lot of people know your dad, and I’m telling you what you already know, he’s a special guy.

But, to have had the courage and the foresight to jump out there and do what he did 30 some odd years ago is pretty remarkable. But you’ve come into the company now, and I know that he’s proud to have you there. Your company’s evolved from a single tenant retail focus to managing neighborhood shopping centers and warehouse properties.

What drove that change over time?

Pratt Thomas: Well, it was really a personnel change in a large company that really pushed us to deviate from the single tenant. It was a single relationship, [00:03:00] single tenant relationship. And so, um, you know, just saw an opportunity where there was small businesses that needed retail space in, that were anchored by a university, a major retailer or some other anchor that drew people to a certain area.

And there was a need for small space for small businesses. And so that’s where we began diversifying into. properties. And then through 2008, the Amazon effect retail was about to die. And so we were really just managing what we had, not really knowing what was going to come. And so we started diversifying into warehousing properties at that time.

And so now here we are today [00:04:00] with a focus mainly on retail and industrial properties.

Bradley Byrne: You know, most of our members here at the Chamber are small businesses, so when you talk about small retailers, you’re talking about a lot of people that make up the bulk of our membership here at the Chamber. So your involvement with the HOPE Program to build affordable homes is truly remarkable.

Tell us more about that.

Pratt Thomas: I was just reflecting on what we we do in our business, developing properties for profit. Um, and really had just had a calling to do something more with the talents that we have, something that was more impactful to, to someone’s life, you know, in a, um, building a shopping center or an office building or whatever it may be is, is great.

And it helps small business, but, um, [00:05:00] You can’t really see how it changes somebody’s life. And so I, I started thinking of, of ways to make an impact in, in an individual’s life that was, um, tangible. And so, uh, really just meditated on it and prayed on it. And so I, I took that as just a, as a calling to, to participate in helping to build affordable housing and just so happened that the mayor and his administration rolled out a program, the HOPE program and, and so.

It was a call to action, and so we, we applied for it, and it’s been a long process, uh, you know, from the time that he announced the program to the time we started building homes, but we’re, we’re, we’re now, we’ve gained some momentum with that, and, um, and so we’re, we’re starting to learn that process and, and work through that, and we [00:06:00] are finishing one home this month and, and starting two more this month.

Oh, wow. Cool. Cool. And so it’s, it’s really cool to see these, these homeowners, you know, you meet with them and the, the emotions that are involved, they’re using, you know, their section eight vouchers, housing vouchers, and the city is, is loaning them the money. And using their vouchers as, as the repayment source, and they, they have to contribute a little bit more as well, but it’s an incredible opportunity for these, these individuals.

Bradley Byrne: Well, we know we have a need for more homes in Mobile. Um, a fast growing economy, you expect more people to come here. Um, so thank you for doing that. So, um, obviously it’s a big honor to be named Small Business of the Year. And by the way, you were in some pretty competitive company because the other finalists were really great.

Yeah. But congratulations to you for winning it. What, what does that honor mean to you and your company?

Pratt Thomas: [00:07:00] Probably the most humbling experience that I’ve had in my entire life. You know, you see that competition and you know, is there, they’re making the announcements of what these companies have accomplished and how much they’ve grown.

I’m sitting back and thinking, we don’t have a chance. And then you hear your name called and it’s just like, Really? I don’t, it’s hard for me to even picture, you know, ourselves in the same same category. So, uh, just trying to do the best we are we can. And so it’s just, it’s been really cool. The recognition that individuals throughout the community have, you know, brought to us and, and then just the recognition that the chamber is, uh, has put on this program, uh, and, and for our company, the billboards and advertisements and, um, and [00:08:00] so it’s, it’s been a great humbling experience.

Bradley Byrne: Well, I think you know this, but let me make sure I emphasize this for our listeners. The chamber itself doesn’t make the selection. We select judges, um, and they make the selection. So you went through an intense judging process. Uh, so I know it’s humbling, but you wouldn’t have gotten if you didn’t deserve it.

So you deserve it. And we’re glad you got it. Um, y’all are pretty deeply rooted in the Mobile community. And we just talked about the hope program, but so what role does community engagement play in your business philosophy? Our

Pratt Thomas: businesses is primarily here in Mobile and Baldwin counties. And so just.

Being a part of the community is just something that is good for business is good for business. Yeah, sure

Bradley Byrne: I make

Pratt Thomas: that

Bradley Byrne: point a lot to people if you’re a business be engaged in the community because it’s the right thing to do But hey, the [00:09:00] more you’re engaged more business you’re likely to get So it’s, it’s a little bit of, uh, enlightened self interest.

Okay. We’re going to take a quick break, but when we return, we’ll talk about Pratt’s journey into the family business and what the future holds for Merrill P. Thomas Company. We’ll be right back.

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Bradley Byrne: We’re back on the mobile matters podcast [00:10:00] We’re here with Pratt Thomas with Merrill P. Thomas commercial real estate who was just named the 2024 Small business of the year Pratt you joined the company in 2008 after working in banking as you said What made you decide to leave banking and switch to real estate?

Pratt Thomas: Well, I had always wanted to be in real estate growing up with a father who was traveling a lot, um, for working on development projects across 11 states. Uh, it was not uncommon for us to, to have a family vacation that. Revolved around where dad was doing work at the time. So, uh, you know, project going on in Tennessee near, near Nashville, you know, ended up, uh, we ended up at, at, um, the musical Dollywood, Dollywood.

Yeah. Um, and so [00:11:00] it was really just, uh, almost a part of my DNA by the time I started thinking about what I wanted to do and. I grew up and so I wanted to really pursue a degree in real estate at Ole Miss. When I was there, dad said, nah, it’s too specific. And so got a finance degree, a double major in finance from the University of Mississippi, still thinking that I wanted to get into real estate and started with AmSouth, which eventually became Regions.

You know, got my license while I was working at Regions and I came to dad one time after about three years in banking and the bureaucracy of banking was something that didn’t jive well with me. And so dad said, I said, look, I want to come work with you. [00:12:00] I thought that I told you after five years, you go, you know, pursue a career for five years, but it’s not working out.

We’ll revisit. I said, well, I thought you said three years.

So, uh, so five years, you know, rolls around in banking and I, uh, I showed back up. And said, you know, I’m ready to get into real estate there. You could see some of the changes, some of the exposure that regions had in December of, uh, 07 in the beginning of 2008 in South Florida, some of the development loans that we had made were starting to feel you could feel his tentacles at the core.

And so some of the changes in banking were on their way. And started feeling some of that. And so I came to dad and said, I’m, I’m ready. He says, well, there’s not much here for you. And I said, well, if there’s [00:13:00] nothing here for me, I’ll go across the street to your competition and

I’ll get started that way. And so, uh, so he found, found a position for me, um, you know, come on and we’ll. We’ll let you start managing some of these properties for a nominal, uh, salary. I think I was, I think I was paid 11, 000 a year, um, and, uh, 12, 000, excuse me. And it was, okay, figure it out.

Bradley Byrne: So, you know, not all of us go into a family business.

And so, I can imagine that joining a family business comes with some unique challenges and opportunities. So, what’s been the most rewarding part of your journey in a family business so far?

Pratt Thomas: You know, finally recognizing the, [00:14:00] the contributions and Um, the value that, that dad has, uh, you know, made over his, his career, you know, as a son, you always challenge your father, at least I always challenged my father.

Um, and so really it was no, no different in business. And so there’ve been, there were a lot of times where we butted heads and it wasn’t until we started. Having differences in, uh, how we were going to go forward. And it became apparent to me that I was either going to have to blaze, blaze a path going forward, or maybe find something else to do.

And it was really hard for us because we butted heads over which, which direction to go forward. And I. [00:15:00] We’ve, we’ve been building a team and, uh, I ended up participating in the Goldman Sachs 10K SB program and, and through that program, it, it gave us an opportunity to, uh, have a holistic view of the company.

Dive deep into, you know, all the different components of our business and, and have just be able to sit down and talk together about what my, my view of how we move forward and in his view, and, uh, just make sure that we are. Having those conversations rather than having these ideas in our heads that, that we ultimately don’t, uh, sit down and have a conversation and put something on paper on how we are going to move forward.

Bradley Byrne: Well, sons and fathers butt heads sometimes, but that’s part of the loving relationship and the fact you feel comfortable enough to communicate what you really [00:16:00] think. And my sons don’t always I think exactly the way I do on things and that’s okay. I mean, you know, it’s part of, part of them being who they are, me being who I am.

So, um, so as you look into the future, what are some of your big goals for Merrill P. Thomas Company?

Pratt Thomas: You know, our vision is to be a leader across the Gulf Coast states in the commercial real estate industry.

Bradley Byrne: Good. I

Pratt Thomas: like hearing that. Yeah. So, you know, the industry and the work that y’all are doing to build that.

is a big part of our goal. Um, you know, contributing to the, uh, the infrastructure and the real estate that’s required in order to help facilitate that growth, forming strategic partnerships, uh, in order to, to just help the city grow. And, and so, um, yeah, we, we have ambitious. Revenue [00:17:00] goals as we grow and it’s going to take growing our team in order to do that.

Um, and so I can’t say that there are, you know, individual projects that are gonna, that we were targeting that are gonna, maybe there are some individual projects, but that would help us get there. Um, But yeah, being a leader across the Gulf Coast states in the commercial real estate industry.

Bradley Byrne: Well, I love hearing a mobile company that has the ambition to be that, because we want you to be that.

That helps us here when you do that. And we are, we’re developing a lot of very interesting opportunities, I’ll put it that way. Uh, our calculations are that we need 50 million more square feet of warehouse space, for example. And not just any warehouse space, the kind that the big boys are using. And so there’s going to be a lot of commercial real estate opportunity there.

We’ve got our, we have a data, uh, person in, in, in the chamber and I asked him to go figure out how much have we publicly, how much have we announced in [00:18:00] public and private infrastructure spending and he came back with a figure, 12 billion. That’s what we’ve announced and we’ve got a lot more yet to announce.

So we think for people throughout our economy, but commercial real estate in particular, we think that there’s going to be a lot of growth there. So, you’ve had the benefit of now been doing this for a while. You’re a successful small business owner. So for those small business owners or entrepreneurs who are listening, what piece of advice would you give them about growing and sustaining a small business?

Communication.

Pratt Thomas: Ah, good. Communication, involving your team in, in decisions, uh, you know, as, as, as we started out, when, when we started as a company, it was every man for himself. When I showed up, it was okay, go earn a living.

Bradley Byrne: Yeah. Eat what you kill.

Pratt Thomas: Yeah. Yeah. [00:19:00] And so, uh, we, we have evolved to, you know, Develop a team.

And so we, we, we take different perspectives and, and communicate, uh, across the team when we are trying to make decisions about how to move forward. And so I would say that, you know, the biggest thing is, is just, you know, taking the initiative to follow your, you know, follow your dream and involve your team and how you want to achieve your goals.

Bradley Byrne: Well, it helps that you have a good team. I know some of your team members, one of them pretty well, and they’re not just good at commercial real estate. They’re good people and, um, kind of congratulate you on your team. Well, Pratt Thomas, thank you so much for joining us and sharing your story.

Congratulations again on being named mobile chamber, small business of the year [00:20:00] from the heart of the mobile business community. This is the mobile matters podcast powered by the mobile.