A simple cap rate analysis for REITs is misleading. A true total return calculation must add 2-3% for rent growth and factor in the amplifying effect of leverage, which can turn a perceived 6% yield into a 10%+ long-term return.

Counterintuitively, the best multifamily markets aren't high-population-growth cities like Austin. These attract too much new supply, capping rent growth. The optimal strategy is to find markets with barriers to entry and minimal new construction, as this creates a durable runway for rental increases.

Before initiating contact, Prime Group's team conducts deep dives on target properties, researching rents, taxes, and other operational details. The goal is to understand the asset better than the owner. This level of preparation establishes credibility, demonstrates serious intent, and sets them apart from unsolicited, low-effort offers.

By servicing maintenance club members during the slow "shoulder season," businesses free up their schedules. This creates capacity to take on new, high-margin customers when demand inevitably spikes, maximizing growth opportunities instead of just servicing existing clients.

Real estate owners were skeptical of new tech. Instead of focusing on operational cost savings, Metropolis's go-to-market strategy centered on proving they could capture more revenue by eliminating leakage (e.g., when gates are up), which directly increased the underlying value of the real estate asset.

In Phase 1 operational improvements, a Pareto analysis reveals that the majority of value comes from three key areas: aligning and incentivizing the management team, rationalizing the revenue portfolio to focus on profitable segments, and optimizing the operational footprint.

Many businesses over-index on marketing to drive growth. However, strategic price increases and achieving operational excellence (improving conversion rates, average tickets) are equally powerful, and often overlooked, levers for increasing revenue.

Kastle Systems data reveals a dramatic stratification in the office market. The best "A+" buildings in prime locations are seeing occupancy rates return to pre-pandemic levels on peak days. Meanwhile, lower-tier B and C buildings are struggling, signaling a major flight to quality.

Asset-light hotel management firms like Hilton grow earnings through RevPAR, unit growth, and buybacks with minimal capital. This structural difference leads to vast outperformance versus asset-heavy REITs. Since separating in 2017, Hilton's free cash flow quadrupled while its REIT counterpart's shrank.