Wednesday, 08 September 2010
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The real estate world

The real estate world is big. There are skyscrapers. There are huge great shopping and entertainment centres. There are extravagant hotels. There are warehouse and logistics parks which stretch as far as the eye can see. It’s a jungle out there man. It can also be kinda lonely. So in this big wide property universe, you have an office building, and you have an investment fund. The two are made for each other. They can’t survive one without the other. The office building needs the sense of worth that only the investment fund can give. Ok, the tenants give some feeling of satisfaction, and they’re part of the gig, they’re part of the scenery. They come with the territory. But they come and go. There’s no commitment there. Here today, gone tomorrow. And you’ll only get complaints out of them anyway. Commitment comes only from the investment fund. The office building needs to feel, well, needed. What’s the point of its flash glass frontage, its strong shiny steel frame, its fancy engineering system, its underground heated parking, its sustainable water retention roof system, what’s the point of it all if the investment fund doesn’t give that office building more than a passing glance. But the investment fund needs the thrill of the chase. It can’t be too easy. It’s not so simple, and not everyone gets it right. More get it wrong than get it right, with the office building left on the shelf, and the investment fund drifting alone empty handed into the night. Maybe it ain’t fair. Maybe it’s too tough. But it’s just the way it is.
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