Increases in upfront costs of 0–2% will result in life cycle savings of 20% over the life of the building.

— California Sustainable Building Task Force

Building B saves $30M in operational and end of life costs by investing more upfront. When owners do capital improvements, they can expect similar results.

The average hold is 8.5 years. This reduces returns.

When the hold period was at its shortest during the 2007 recession, returns were the lowest.

A longer hold combined with quality improvement results in the greatest returns.

Holding Period

First Quarter 2021 NCREIF Indicies Review

NPI total returns by property type

First Quarter 2021 NCREIF Indicies Review

Industrial is the only sector currently performing close to the historic average annual return of the S&P 500.

The CRE industry can do better than extreme booms and busts.

With a careful asset management strategy and dedicated quality improvement, these swings can be minimized and all sectors can improve NOI.

We understand the economics of construction like no one else.

Rising construction costs, inflation, materials shortages, long lead times, and new regulations are all cutting into profit. What is the solution for long term profitability?

We can help.

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