I have not posted in a while – but a topic is on my mind, so I thought I would share. I often get asked as a Senior Real Estate Analyst – what is the secret to real estate? – I generally do not post opinion pieces – but here we go. Three key ingredients I think make for good real estate – Land, Location, Quality Buildings.

1. Land: To be honest – land is something that typically has not ever real lost its value – Yes there are many exceptions I acknowledge that. But it is a scarce resource, particularly in cities like Vancouver and Toronto. You cannot build more buildings if you do not own the land. There are those that typically just simply buy the land, and hold it for several years, waiting for appreciation. (Called Land-Banking) If you have the land – you control the area and what goes around it.

• Location: That simple saying ‘location, location, location’ is still true today, as it ever was. Given we are in a competitive market, as especially individuals, and employers balance the need for working from home / do we need office space? –  The question becomes – What can you offer, that is unique, or can get you to build? Is it amenities, in your new office building? is it access to high quality retail shops?

If anyone knows me, I am a huge view person. Give me a downtown high-view, river-value view, or something unique – I still believe that matters. The location of your building truly matters. Real Estate I believe is the benchmark for a city – brings people together and creates better cities. I mean let us be honest, particularly in Edmonton, the more we build the better our downtown is. On a sidenote – I am super excited about the upcoming Edmonton Downtown Warehouse Park! Where we can balance all the condominiums with an amazing park. Google it – if you have not heard about it.

• Quality: Quality is so crucial, you can build the prettiest building, but if its not functional, if it was not constructed right, then in the end – I personally feel your going to run into problems down the line. While I am not in development – I think those will agree that building it right is the goal.

In Real Estate as I alluded to you are making an impact – I also believe you have that responsibility to make that impact through quality construction.

Tenant Mix: Quality not just in the building construction but also having quality tenants who support the vision you share to is also equally important. You want to feel proud of your space, also want you visitors to your sites to feel special. Having a good tenant mix, I believe is key to success.

So, balancing out the correct land, the correct location with the best buildings with outstanding tenants is the key to success in my opinion!

I understand that I am oversimplifying all components and have barely scratched the surface – but I like to keep my blogs general so all readers can appreciate. I would love to hear feedback and people’s thoughts! Feel free to reach out. If you are into talking cap rates, different Assets Classes etc. too, I am also game.