It’s time to let the next generation of leadership step up. That’s why Tim Murnane, the long-time president and chief executive officer of Minnetonka, Minnesota-based Opus, announced his retirement late last month.
Murnane, who will have served 15 years in his leadership role as of the date of his retirement, said that Opus, one of the busiest development, design and construction companies in the Minneapolis area, boasts a talented roster of talent. It was time to tap these professionals to lead the firm, he said.
“At Opus, we’ve always focused on succession planning and making sure we have great leaders identified early on. We’ve always provided these leaders with the tools and resources that they need,” Murnane said. “There’s nothing magical about having a 15-year term. But that is a long time for a CEO. It’s the right time for me to retire personally and the right time to let the next generation of leaders come up.”
One of those leaders? Matt Rauenhorst, who currently serves as president and chief executive officer of Opus Development Company. The members of Opus’ board of directors selected Rauenhorst to fill Murnane’s role as president and chief executive officer of Opus once Murnane leaves the post.
That won’t be coming too soon. Murnane will work in his current role through the end of 2026. This means that when this industry veteran retires, he will have spent 38 years at Opus and 46 years in the commercial real estate industry.
Matt Rauenhorst and Tim Murnane (Photos courtesy of Opus.)
Phil Cattanach, formerly of Opus, will return to the company to take over the role of president and chief executive officer of Opus Development Company upon Rauenhorst’s move to his new role.
Murnane said that Rauenhorst is the right person to take over his role. Murnane said that Opus began considering people to fill the role of chief executive officer and president five-and-a-half years ago. This included hiring an outside consultant to evaluate the options.
The consensus? Rauenhorst was the best person for the job.
“I have worked with Matt for more than 20 years. I’ve gotten to see him grow as a leader,” Murnane said. “Matt was the successor who made the most sense. Matt is ready for this position.”
Rauenhorst said that he appreciates the opportunity to work with Murnane during the next 18 months to learn the intricacies of the job he’ll be taking over.
“I appreciate the thoughtfulness that went into this decision,” Rauenhorst said. “What an incredible opportunity and gift to have that overlap with Tim of 18 months. That is a great benefit for me and for Opus. This is a longer transition than you’d normally see. But it will benefit the overall organization.”
Rauenhorst is happy, too, to see Cattanach return to Opus. Rauenhorst said that Cattanach, too, is a talented leader and developer, and his return will provide another boost to Opus.
Continuity
The succession plan continues Opus’ long history of retaining its talented workers for many years. Murnane might log 38 years with the company by the time he retires. But that won’t even make him the longest tenured employee at the company. There are some employees who have worked for the company for more than four decades.
Murnane said that Opus has always given talented people the chance to build a great career.
“That’s one of the things that’s so special about the culture here,” Murnane said. “The leaders at Opus have always believed in giving smart people the chance to succeed or fail. That is empowering to an associate, especially someone who is, say, 25 or 26. They are given a tremendous amount of authority and responsibility to run a project. That is empowering, and it inspires people to stay with us.
“It’s not just a job here,” Murnane said. “People appreciate the culture and core values that our founder embedded here.”
As Rauenhorst says, commercial real estate is a cyclical business. This means that Opus’ business strategies must evolve over time to meet the challenges of working in this field.
But what doesn’t change? Opus’ core values.
“Who we are, our culture and core values have been consistent for 70-plus years,” Rauenhorst said. “Tim has been powerful in helping to lead that. Innovation, safety and leadership are key components of our culture. Our associates want to be here for a long time. They feel good about the organization in which they are working.”
Long-term success
Gerald Rauenhorst founded Opus, originally named Rauenhorst Construction Company, in 1953. That means that Opus has been a fixture in the Twin Cities area for more than 70 years.
Opus has gone through a lot of up and down commercial real estate cycles. How has the company managed to thrive for so long?
Murnane said that Opus’ leaders have long spotted opportunities early in new cycles. This was evident during the recession of 2008 and 2009, a time in which every commercial real estate firm was hit hard.
Opus’ leaders rebuilt the company following this recession, focusing on providing the top customer service and building the highest-quality properties. The company also expanded into new geographic markets.
Opus has also been nimble enough to focus on commercial sectors that are thriving. In the 1990s and 2000s, Opus became one of the biggest developers of office properties. The company also built plenty of retail when that sector was growing.
During the last 15 years? Opus has focused on the industrial and multifamily markets, both sectors that have been booming during this time.
Opus restructured in 2010. The company kept its high-performing Midwest offices but added locations in higher-growth markets such as Phoenix, Denver and Austin, Texas.
“The strategy has been to stay focused on the primary products that we most experienced in – industrial and multifamily – and focus on geographic markets that are providing the biggest opportunities for growth,” Murnane said. “It’s about building in a slow, methodical way.”
Rauenhorst said that another reason for Opus’ success has been the quality of the company’s work.
“The big institutional owners of real estate, whenever they buy buildings from us, they say that Opus has a brand that stands for high quality,” Rauenhorst said. “Whether it’s multifamily, industrial, office or retail, our team has consistently delivered high-quality buildings. That’s a differentiator for our band and part of our long-term success.”
Opus also not only survived COVID but thrived during the pandemic. Part of that was because of the boom in demand for industrial space. Opus was well-positioned to deliver that space for its clients.
Murnane also credited the long-term planning of Opus’ leaders. These leaders had developed a strategic growth plan before COVID. Following the tenants of that plan helped the company navigate the challenges of the pandemic.
“We couldn’t have predicted COVID, but we were fortunate that we had done some planning,” Murnane said. “We were ready to make cuts to expenses. We didn’t hire as many people as we might otherwise have added. We had a road map that helped us anticipate changes in business. Nothing ever goes completely according to plan in commercial development. You need to be responsive, nimble and smart.”
Opus is now planning a new headquarters office in the Twin Cities suburb of Edina. Opus will fill a portion of this new five-story, 112,000-square-foot office building. The building will be a high-quality one with modern finishes and amenities.
“We are fired up about this at Opus,” Rauenhorst said. “It is an incredible site, and we can deliver an A-plus building in a market that needs it. It will be Opus’ future home, but this is a market-driven development. The demand side for Class-A, well-located suburban office is strong. Our site responds well to that demand. We think it will be a well-received building that sets a new bar for what in a post-COVID world a Class-A office building should look like.”
