I’m always watching demographic and economic trends. It’s one way we unearth high value deals from across the US.
A very interesting trend that continues to pick up steam is remote working. Thanks to communications apps, on-demand transportation, and other internet-enabled wizardry, remote work is becoming a lot more common.
With less need to be in a central office, many people are migrating away from the biggest and most expensive cities. Capital is flowing into new markets, and that means opportunities in commercial real estate.
Population growth is a powerful signal of financial growth. More people, especially those with more income, means more demand for the kinds of local business that Alliance’s tenants serve.
High costs are a big reason that so many Californians and New Yorkers are relocating to places like Nevada, Oregon, Idaho, and North Carolina. As wealthy tech hubs like San Francisco, Seattle, and Boston become financially unlivable for more families, America’s 2nd and 3rd tier cities are starting to look extremely attractive.
Predicting market trends is an art, which the Alliance team has honed for years. We look beyond current population growth to find the factors that are likely to drive future population growth. Things like ease of doing business, low taxes, quality schools, infrastructure, and quality governance are all important indicators that more businesses and remote workers will relocate there, seeking lower costs and higher value.
Technology, culture change, migration, and business environment can create fast-moving feedback loops that help a small city explode in size and wealth. At Alliance, we’re monitoring these changes closely so we can jump on great investment opportunities before competition bids up prices.