Do It Again: Real Estate’s Return to Old-School Value Creation

Ken Rosen has been an astute analyst of the real estate world for 50 years. The highly regarded economist, consultant and educator explains why today’s higher interest rates could force investors back to the fundamentals. He also provides a framework for strategic investment and operational excellence in a rapidly evolving landscape.

·      Higher interest rates mean returns must come from real estate fundamentals, including better asset selection, leasing, operations and placemaking.

·      Rosen notes that capital is a short-term asset, while real estate rewards long-term value creation.

·      Deep repricing, constrained supply and renewed demand can turn challenged markets like San Francisco into compelling opportunities.

·      Office-to-residential conversions may become a bigger opportunity as cities look for ways to address housing shortages.

·      Better data can improve decision-making, but it can’t replace human judgment, common sense and a real, experience-driven understanding of market conditions.