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Above all, L&B seeks to create value through skilled portfolio development and active portfolio management, investing in assets through focused strategies that fit each client's risk/return profile. Thorough underwriting, a detailed investment plan for each property and hands-on
asset management help to provide solid income and capture value to ensure that investor objectives will be met.
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Market Perspectives
It is easy to become overly optimistic in an expanding economy. As the real estate industry delights in its continued growth, and with property values and demand increasing, L&B continues to emphasize due diligence and tight underwriting. History has shown that certain types of tenants, strategies and formats are less effected by economic fluctuations. L&B takes our fiduciary responsibility seriously by analyzing down-side risks in order to "bullet-proof" our portfolios as much as possible.
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Retail
Retail is in the upward phase of the investment cycle; however, not all retail is the same. Retail properties located in trade areas in high concentrations of affluent, time-constrained (our "ideal") consumers will outperform similar properties located in other trade areas. L&B recommends niche opportunities in special formats in these trade areas.
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Office
Rents
in many suburban markets (and in some CBD's) have reached levels sufficient to justify new construction. Abundant capital availability has brought significant downward pressure on office investment yields and continues to fuel new development. At current pricing, investors must be wary of the risks of slow/negative rent growth (due to new supply) and to capital depreciation (due to a correction in the supply of capital.) |
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Industrial
U.S. commercial property markets are reaching maturity in terms of asset pricing and property level rental rates. L&B strategies are designed to generate strong cash flows while minimizing exposure to potential market weakness. |
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Multifamily
The current marketplace is characterized by an abundance of low-cost capital, which is driving down capitalization rates across the country. As investors chase too few opportunities, disposition is becoming an auction market process. As new development and rehab capital has increased, some markets have already begun to show signs of over-supply. Even though potential yields are still well above 10-year Treasuries, L&B recommends a cautious and selective approach to the multifamily sector.
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