How might China’s wobble affect MOBs

August 31, 2023

Investment August 31, 2023/Investment The news recently has been full of stories about China’s mounting troubles. Youth unemployment is skyrocketing. At least one very large real estate company is bankrupt. Chinese debt is high and confidence is low. They seem headed for a recession, or worse.   As the second largest economy in the world…


Investing in great partners

August 24, 2023

Investment August 24, 2023/Investment In recent years, I’ve heard more people saying some version of your network is your net worth. I don’t entirely agree, but they have a point. Relationships with high-performing people are among the greatest assets any business can have.   One particular deal we did a few years back really demonstrates…


The Fed… and MOB implications

August 18, 2023

Investment August 18, 2023/Investment After more than a year of steadily increasing interest rates, the Federal Reserve (the Fed) announced another slight rate increase in July. Will we see more interest rate increases later this year?    Marcus & Millichap predicts that the Fed will probably hold off on more rate increases for the following…


Why MOB Conversions are Rare

August 3, 2023

Investment August 3, 2023/Investment A few months ago I wrote about real estate conversions. That piece prompted several questions from investors that I wanted to address:   First, some quick background: when a shortage of a certain kind of property type (e.g. MOB or housing) meets an oversupply in a different property type (e.g. office),…


Retail Healthcare Trend Benefits MOBs

July 19, 2023

Investment July 19, 2023/Investment Over the last few years, the healthcare industry has started taking cues from retail. This is a win-win for consumers (i.e. patients) and long overdue.   Historically, medical appointments have often been inconvenient, time consuming, and frustrating. These small frictions also cause people to put off care.   If retail worked…


Case Study: Lease Renewal… And Win-Win

July 13, 2023

Investment July 13, 2023/Investment Fear of vacancy runs deep for many commercial property owners.   A looming lease termination date means uncertainty, and often difficult negotiations.    Many commercial real estate property owners will sell in the few years before a lease terminates… And often, their risk aversion is Alliance’s opportunity.   Some of our…


Succeeding In All Market Conditions

July 7, 2023

Investment July 7, 2023/Investment Investors must track and manage risk. This has been a key part of Alliance’s 25 year track record of winning in all market conditions.   The highly respected commercial real estate (CRE) research firm Marcus & Millichap recently published their own list of the top 5 challenges in today’s market.  …


The Power of Demographics

June 29, 2023

Investment October 7, 2022/Investment Many people find demographics boring – just another kind of statistics.   I’m not going to bore you with math or charts, but let’s talk about how powerful demographics can be.   Demographics are all about the big trends in a society. If you pay attention to the direction of change,…


Positive Sum Mentality

June 23, 2023

Leadership June 23, 2023/Leadership If there is a secret to business, this is it: Put energy into creating value, in addition to capturing value.    When you create value for others, they’ll want to work with you again. They’ll give you the benefit of the doubt, friendly terms, and will even go out of their…


MOB Continues to Outperform

June 9, 2023

Investment June 9, 2023/Investment Medical Office Buildings (MOB) are a key part of Alliance’s investing portfolio, and this sector continues to outperform other kinds of commercial real estate.   The highly respected research outfit Marcus & Millichap recently published a report on commercial real estate trends. The data really supports our investment strategy in several…


Tighter Lending? Alliance Is Well Positioned

May 25, 2023

Financial May 25, 2023/Financial Lending standards are tightening across the banking sector, and particularly among banks with so-so balance sheets.   After years of cheap and easy money, this is no surprise.    Banks received a glut of new deposits during the pandemic. Many of them parked that extra cash in government bonds that are…


Are Conversions the Answer to MOB Shortages?

May 12, 2023

Development May 12, 2023/Development Recently, a lot of people have been asking me about real estate conversions.   At first glance, this makes sense. We know that traditional commercial real estate like offices and retail space are struggling. The work-from-home trends that started during the pandemic have not reversed. Inflation and other economic worries are…


Medical Debt Forgiveness… Is it Bad for MOBs?

May 4, 2023

Investment May 4, 2023/Investment Healthcare costs continue to rise in America.   The amount America spends per person on healthcare is dramatically more than other rich-world countries. It’s also unlikely to change any time soon, despite modest initiatives for more efficient spending, e.g. value based healthcare.   There are dozens of explanations for why this…


Banking Industry Woes? Alliance Isn’t Worried

April 11, 2023

Financial April 11, 2023/Financial The news recently has been full of stories about banks in turmoil. Silicon Valley Bank (SVB) went bust, First Republic has been pushed to the edge, and the Swiss government brokered a firesale of Credit Suisse to prevent further trouble.   We’re closely monitoring developments in the banking sector, but I’m…


MOB’s Buck Recent Real Estate Trend

March 8, 2023

Investment March 8, 2023/Investment The real estate investing environment these days is mixed. Many people expect a recession in 2023, although we’ve been hearing that for quite a while.   Future expectations do affect decisions now, so much of the real estate industry has been slowing. Global commercial real estate investment volume fell substantially, year-over-year,…