Showing posts with label blog direction. Show all posts
Showing posts with label blog direction. Show all posts

Tuesday, December 29, 2020

The End of 2020: Now What?

2020 has been a life-changing year for everyone, literally everyone. From the global pandemic, to the fluctuating economy, not to mention the seismic shift in the perception of "going to work," it is safe to say that the world is different place than it was 12 months ago. Now what?

Every year Bloomberg Business Week puts out its "Bloomberg 50"--a list of 50 individuals that have made their mark during the prior year. Although this year's list contains a number of impressive men and women who were able to quickly mobilize and make moving, positive contributions during this tumultuous year, it is notable that not one member of this list was mentioned for contributions to the real estate market. In fact, there are many executives on the list that are touted for reducing the size and/or the footprint of their companies, which in many instances includes real estate divestment. Furthermore, Blackrock, a private equity that is well know for its real estate investments, has made the list, not for real estate, but for its renegotiation of national debts in South America.

The lack of presence of real estate in this list is yet another illustration of what was obvious to all real estate professionals--2020 was not the year of the major real estate transaction. As people hunkered down during to quarantine, the economy fluctuated and work-from-home became the norm, the real estate market dramatically changed. Mortgage delinquencies rose, office spaces became more available, the cost of materials trended upward and permits for new projects trended downward. Migrations from urban areas also took place en masse in March and April as those with the means and desire to seek less crowded surroundings during the spread of the pandemic did so. Although the amount and duration of this recent migration may be disputed, the effects of this exodus have noticeably shifted the dynamic in many local real estate markets, for better or for worse.

As asked earlier, "Now what?" Anyone that has paid even a little bit of attention to this blog over the years knows that I do not "do" doom and gloom. There is always opportunity in change and if there is one thing that 2020 has done well, it is that it has exposed a number of opportunities. From the rise of Special Purpose Acquisition Companies to the consideration of rezoning in urban areas, opportunities to add value, create wealth and thrive in the real estate market are going to present themselves throughout 2021. Rather than make a brief list of some of these opportunities in this post, I will attempt to explore them more in depth in posts throughout the upcoming year. 


Instead of looking back on notable movements in the real estate market during an unprecedented time, I have decided to look forward to the apparent opportunities of the upcoming year. So, please join me as The Real Estate Think Tank.com celebrates its 10th year in existence in 2021. It has been a wild ride thus far, let's conquer next year together. 

See you in 2021.

Wednesday, February 11, 2015

Why I Choose Real Estate

A number of times throughout my career, I have been asked a very poignant question—why real estate? Admittedly, other asset classes do carry a certain level of prestige, which is typically more associated with the asset’s mystique, yet I find that real estate can be as involved and complex as any other asset class. Although the mathematics for risk curves and certain derivative transactions may be more intricate than those used in a typical commercial real estate property acquisition, such transactions and risk analysis can be structured around real estate financing structures. In fact, the mathematical aspects of some of the more “complex” investment vehicles are not as esoteric as they seem and most can be understood, given enough time and exposure to them. The legal issues specific to each class of investment can also be considered complex, but not beyond the comprehension of most competent lawyers. Ultimately, the decision to prefer one asset class over another boils down to a matter of preference.

So, why do I so closely follow real estate? The reason is that underlying any real estate-related transaction is a relationship to a tangible hard asset. A tangible hard asset that has a value influenced by easily understood factors. Real estate markets for every property class are motivated by the economy, real estate demand and the market for the business that the property serves. The real estate market is also relatively stable and changes over the course of years, not months or weeks. Finally, real estate is one of the few assets that lends itself to owner-operation in a way that a company or payment stream may not.

Sunday, November 23, 2014

It's Good To Be Back

Hello Blog Audience,

It's been a while, but I believe it is time to renew this blog and begin posting again. Having finished law school and gained a greater appreciation for the legal aspects of real estate and real estate securities, I have much to write about the wonderful world of real estate and real estate finance. I continue to augment my quantitative knowledge of both real estate and securities, but have found it necessary to also be intimately familiar with the law that makes all of this analysis possible.

I recently looked back at my previous posts and saw how the discipline of blogging about a topic forced me to confront the limits of my knowledge and seek answers. In that sense, this blog was, and continues to be, as much about my quest to better understand real estate finance as it is an expression of my knowledge of the asset class. Having stated that personal realization, I look forward to the more robust nature of the content of this blog. Post will be more frequent and necessarily more succinct in nature. I cannot promise daily posts, but I can promise to "get back on the bicycle yet again." Now for the legal disclaimers.

This blog is for the purposes of information only. I make no representations as to the correctness of the information posted on this blog and any posted information must be verified independently. Nothing on this blog is intended to give legal advice, suggest legal advice or be construed as engaging in the practice of law in any way. All discussions of legal matters should be verified by competent council, licensed to practice in the jurisdiction in question. Any of the opinions posted by anyone on this blog are those of the poster alone and are not necessarily shared by me. Such opinions include, but are not limited to, those from readers, fellow bloggers, guest bloggers and/or any miscellaneous commentary posted, with or without my knowledge.

That was a mouthful. Happy reading and feel free to leave a comment.