Savvy real estate investors know that they can beat the competition by getting-in ahead of the herd mentality, but the window of opportunity closes quickly as soon as mainstream capital starts to flow. By taking the time to assess the broader market characteristics we are able to understand new trends, capitalize on new market opportunities, and direct investment funds in strategic ways. The timing of the worldwide rural-to-urban transition and the creative class generation with the massive deleveraging of the Great Recession represents the largest shift in 75 years, for the cumulative endeavors of the real estate community.
Bright-light urban environments attract the exploding number of career-building, Boomer offspring known as Generation Y. These 20-somethings prefer places to congregate with friends—in parks, bar scenes, restaurant clusters, and building common areas. This generation prefers the less pricey digs in urbanizing commercial nodes along transit routes convenient to center-city jobs. Investment will gravitate to places that welcome business and view public investments in education, infrastructure, and innovation that cater to this new generation’s preferences. Markets are becoming ever more segmented and specialized where “one size no longer fits all” so it is important to get closer to the market and meet the demand of the different fragments individually.
“The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday’s logic.” ~ Peter Drucker