Isaac Gutman

Isaac Gutman Says Learn From Commercial Real Estate Mega Deals

Isaac Gutman is one of the great, innovative business leaders and real estate entrepreneurs emerging out of New York City. Currently, he is CEO of Ryer Investments, a hyper-growth NYC development and real estate management firm headquartered in Angola with holdings throughout New York City, Brooklyn, and the Bronx. Isaac Gutman was named one of the real estate visionaries and development professionals in New York City. He is frequently quoted as an expert on construction planning and major capital investments in the media and is a recurring contributor for the Real Estate Daily Report. Isaac Gutman is an esteemed member of HGE, a highly selective community for entrepreneurs in the real estate sector that includes some of the most passionate and successful entrepreneurs across the globe.

Over the past ten years, there have been numerous mega-deals in commercial real estate: purchases totaling more than $100 million. In South Florida alone, the industry saw a dozen mega deals, including six in Miami-Dade County. Savvy real estate investors can see the value in these investments and are taking advantage of them moving forward.

1. The Hottest Cities in America

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Around America, some cities simply outperform others in terms of the number of mega-deals available in the area. These include:

  • The Dallas/Fort Worth area
  • Chicago
  • New York

In these areas, commercial real estate may not be readily available, but when it does go on the market, it has the potential to offer a substantial return on that investment. Many investors recognize the importance of investing in these key areas.

It’s important, however, not to rule out smaller areas. Many millennials are leaving big cities finding that they simply don’t have the funds to live in these big cities, even if they have the skills needed to jump into open jobs and fill talent gaps within their chosen industries. As a result, many people are shooting for a higher quality of life in smaller cities that offer the same opportunities—which means those mega deals are likely to be around for some time to come.

2. Warehouse and Industrial Properties Increase in Popularity

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Now, as never before, savvy investors are looking to warehouses and industrial properties. These properties have immense potential for the online shopping market: more customers than ever are shopping online, and they not only want their products at lower prices, they want them fast. Offering warehouses and industrial properties around the country makes it possible for many of those online shopping giants, including such big names as Amazon, Target, and Walmart, to reach their customers no matter where they live, allowing them to enhance their services to their customers and keep goods moving smoothly around the country.

The Twin Cities area, for example, saw record-breaking sales, both in terms of overall volume and the purchase price of a specific property, in 2019—and, in spite of economic challenges plaguing the beginning of 2020, the market seems set to continue to grow. The increasing number of customers turning to online ordering in light of the pandemic may actually fuel the growth of the triple net (NNN) industrial leasing industry further.

3. Shifting Home Ownership Trends

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Millennials have a unique perspective on homeownership. Many of them have little desire to “settle down” in a home that belongs to them. They’ve grown up through economic uncertainty—and in fact, many millennials have fewer financial opportunities and lower financial portfolios than previous generations. As a result, they’re choosing to live in rental properties longer.

In many cities, this decision is fueling strong demand for apartment complexes. Millennials, especially those who are waiting longer to start families, are often content to live in apartment complexes, especially those that offer the amenities they want most from their investments. As a result, they’re comfortable in those spaces—and apartment complexes make an excellent investment in many areas.

4. Changing Office Space Needs

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Many employers are revisiting their office spaces. Instead of offering employees more individual spaces, offices are looking into open spaces that encourage collaboration. Savvy investors, however, will consider how COVID-19 and the resulting social distancing measures may continue to impact this strategy for some time to come: many investors may find that an increasing number of offices shift to allowing remote work, which may change the design of the physical office substantially.

Changing the way investors offer spaces to office managers means remaining innovative and aware of the latest trends in the industry, even as things start to shift back to normal. Flexible working environments, including spaces where workers can rent office space, are likely to rise into higher demand as more offices offer remote work possibilities and employers look at a global workforce, not just a local one.

Savvy commercial real estate investors must stay on top of the latest trends in order to make the most of the opportunities available in front of them. In many cities, demand continues to rise—and how you respond to those needs can make a substantial impact on your financial portfolio.