Our philosophy in selecting target property types is pretty straightforward. Multi-family is too easy! It’s available in abundance and easy to manage as an investment. As a result, the competition to acquire multi-family is fierce, putting ever-growing, downward pressure on going-in cap rates. A higher level of expertise is required to successfully manage investments in other property types. Our expertise is very much focused on industrial, office, and retail.
E-commerce sales in the USA have been growing nearly three times faster than brick-and-mortar sales for the past decade. Consumers now have a myriad of shopping choices, available with next-day delivery and flexible return options. This has put increasing pressure on the supply chain and driven demand for industrial real estate to nearly unprecedented levels.
The tech industry continues to lead leasing trends in our target markets, with companies such as Amazon, Apple, Google, Facebook, and Expedia based here. Opportunities are following job growth, expanding out of the CBDs. In particular, suburbs with transit accessibility, abundant retail options, and residential density are well situated to benefit from this growth.
Contrary to what you may have read, retail is not dead! It's simply evolving. Big box retail stores and department stores are definitely under threat from e-commerce. However, there remain products and services that consumers prefer to buy or consume in person. People still crave and will seek out social interactions. The key to sustainability is to make retail experiential.