If you could start over, which market/product type would you specialize in?
The title says it all - we've all chosen our niches (or had them chosen for us), but I'm curious what the RE forum has to say now with the luxury of hindsight.
Which product types, in your opinion, have the best medium to long-term outlooks? Is there a specific market that you think is better positioned than others to be lucrative for years to come?
In the spirit of starting the conversation, I'm intrigued by the idea of medical office. It seems like it has a lot of overlap with retail in terms of investment decision-making, which makes me wonder if that sector stands to be a big winner when these retail properties start to turn.
Bump
Contrary to picking one, I wish I had a broader knowledge base when it comes to product type. It is a mission of mine over the next couple of years to acquire this. If I could start again, I would work to find one of the elusive firms that build a bit of everything.
Thanks @CRE, appreciate your perspective.
To confirm (and for the benefit of others who may be reading this thread), you're saying that you wish you'd spent time at a place that ran a generalist program such as a Hines/Invesco/Eastdil, right?
Not necessarily those, because the problem with those type of programs is that you can get siloed into running models nonstop without ever understanding the physical real estate, but yes - a company that develops multiple product types based on the highest and best use of the site and to take advantage of specific market conditions.
I mainly don't wait to get "pigeon-holed" into only one product type. I'm a multifamily guy, and as a result I've also done a decent amount of retail, but I'd love to work and/or run a place that isn't afraid to build apartments when apartments make sense, office when office makes sense, a warehouse when a warehouse makes sense, retail when retail makes sense, etc.
Agree with @CRE - less of an interest in building but acquisition or asset management across product types is where my interest lies.
I've worked across pretty much all property types in different markets. I'd say industrial has the best outlook. Not the sexiest but best aligned with how supply chains have evolved. Middle cost markets/metros and suburbs of major metros, where the cost of land is less are where you'll make the most money. Leases are solid too, and few to little improvements are needed for when you turnover a space to a new tenant.
I would go back and hopefully join a brokerage team that played in all products. But after a couple years I would definitely target the health care/medical office space. That's a niche area I would spend my career in. Easily the most interesting product in my opinion.
Start my career in Land Brokerage. Establishing relationships with landowners, municipalities, and developers would mean you would know what your market needs and what developers are best to work with.
Honestly, I would go into medicine.
jesus... $1.3mn comp from a 9-5 job that she can practically continue until like 80, and a net worth of $6mn already at 41. I'm sure her med school residency years were as bad as IBD or even worse but... what a boss
Anything niche-y I could've moved up fast in but turned my nose up at, at the time. Like maybe even cell towers.
glad you said this, people on WSO seem to think "niche" = bad, and think being a broad specialist is better. In reality, you really need some niche (might be product type or market, but could just as well be function/role/deal type/process/etc.) to drive value and move up. Generic analysts aren't that special long-term.
absolutely! not only will i stand by this but i want to emphasize to any young monkeys reading this that i *SLOWED MY CAREER PROGRESS* in my 20s by turning down a seemingly less-sexy job at a niche company, would've paid more than where i ended up but i insisted on putting myself in a role with exposure to 'multiple food groups' and looking back that was unnecessary.
as a side note, if you're worried about only having one arrow in your quiver, random suggestion that comes to mind: pick ONE other product type and study it a couple hours week for fun. in 2020 you can self-teach just about anything, look at the bloggers and seekingalpha contributors with nontraditional backgrounds who developed their own expertise. if you pick one outside your day job then you'll be an expert in two different things. maybe not a master of the universe but that's pretty cool IMO.
disclaimer: if you're a PBK from Brown or Pomona comparing top front-office offers from Grosvenor Group and TPG Real Estate you can ignore this, take your generalist job offer and you'll do fine...
Couldn't agree more. If you want to succeed in real estate (or maybe anything?) you need to have an advantage over the next guy. There will always be someone who will outbid you if you don't have a specific edge over them. Maybe you know your municipality like the back of your hand and know where the next gentrifying areas are likely to be. Maybe you know the potential tenants in a given space. Maybe you know the local land use regs and grant programs. But you need to have something. Because you'll never have cheaper capital than the big players, and if you're based in San Francisco and trying to do deals in Orlando, there will always be someone local who is going to get that look first.
Single family and multihousing development in South Florida
What are some trends that draws your attention there?
population inflows, job growth, limited supply
Sub-prime mortgages pre 2007-2008
Ask Tim Dillon how that went
Industrial baby for spoiled millennials who are too lazy to get off their couch.
Biotech/Life sciences - I think that’s where the most innovation in both architecture/building science and technology is. Plus you’re most likely working with companies and people who are pioneering an industry, sector, or product. (If you’re in this field, feel free to correct me if I’m wrong)
I’m in mixed-use/MF and I feel like once you’ve done one, you’ve done them all. The good thing is housing will always be needed, so it seems that most developers in multi family are just trying to streamline the process and build it cheaper and cheaper. Only innovation is keyless freakin entries.
To be fair there are small innovations in MF, just nothing compared to biotech spaces.
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