It’s not all numbers. A lot of it is, but not all of it. Real estate is not a commodity. It has walls and windows and doors and a street address. Someone lives there or works there or thinks there or visits there or shops there. So why are there two silos – financial analysis and “bricks and mortar”? Clearly, if it costs more to build than the dollar value it creates, it won’t get built. But, the prevalence of commodity-based analysis neglects physical, locational and contextual trends and forces. Want to make money in real estate? Think from both sides of the brain at the same time. Multi-pronged and inter-disciplinary analysis benefits investors, users, community stakeholders and the built environment in the short-, medium- and long-term. Successful real estate investment is a balancing act between what’s good for the investors and what’s good for the users. Think about balance: financeability with creativity, market-driven strategy with trend setting prognostication, traditional products with redefining experiences, acceptable with excitable, familiar with fantastical.
The path to creating value is set when acquiring, strategizing and executing on a defined vision. Success retains flexibility to adapt to rapidly changing markets. Value is not achieved through points on a map. Value results from constantly challenging decision nodes with both analytical and creative perspectives.
- Acquisitions - Strategic vision - Market positioning - Risk factors - Entitlements - Phasing strategies - Financial results - Partnerships/team building - Due diligence/research - Development/investment alternatives
Navigating the path requires experience in real estate finance, development, planning and design. Exposure to entrepreneurial development firms, private equity funds, REITs, design and advisory firms and public entities provides the perspective. Unique entrepreneurial and interdisciplinary skill sets maximize identification and execution of value-add strategies. User experience and owner operations are fused with investment constraints and opportunities.
Where does value come from? Keen market and analytical intellect. Big picture visioning. Detail-oriented execution. Macro and micro real estate fundamentals. Insatiable passion and curiosity. This is how early stage market trends and opportunities are discovered.