Data Chronicles: Higher Education

This week I came across the white paper I wrote while at North Lake College. Data has always played a signficant role in my career. Excited to see how it is showing up as I shift to a speaker, mentor, and commercial realtor.

In every industry there is data that will help us working smarter not harder.

Here is a snippet of the possibilities, Working Smarter, Not Harder

Data Chronicles: Minority-owned startups

Dallas-Fort Worth leads the state in terms of number of minority-owned startups. Unfortunately, they are unevenly clumped in one area, Accommodation and Food. This is particularly disconcerting when we consider the food insecurity in many communities that house a large percentage of minority residents.

Is there an opportunity for the top heave food start up to support agricultural companies in the area?

StartUp DFW

Office Space: Low vacancy. High Rents…What does it mean?

A few months ago I transitioned from residential to commercial real estate. Truth is for the past two years I have applied commercial principles to residential real estate investments. This explains my lackluster success with non-investor residential clients but I digress.

To get my feet wet, I began with what I love ….Data! Data! Data!. (NOTE: If you remember Cody from the Step by Step TV show, you read that part correctly). In this week Data Chronicles, I unpacked the Office Space trends in the Dallas-Fort Worth Market. I work with small- to mid-sized businesses who are in transition. So, my goal was to find a way to address their pain points.

What I realized is that as big corporations chase quality office space, they are vacating office spaces physically but not actually. These vacancies are not reflected in the data. Technically the corporations are still tenants because the leases have not ended. Hence, my small- to mid-sized clients who need short-term solutions may be able to find a favorable deal. Time to make some phone calls.

For the synopsis of my efforts, check out my link Dallas Office Space – Analysis If you want more details, lets talk. Schedule a phone conversation

Need for Affordable Housing

Currently, my primary client wants me to automate portions of her property management company.  To learn more about the business and her strengths, I am working as her assistant as I shadow companies who have automated various aspects of their property management company.  What is surprising to me is the gap in affordable housing. I was shocked to discover that nearly half of all renters can’t afford rent.

I routinely speak with potential applicants who struggle to meet the requirements of the housing market.  One potential applicant began looking for a new place to rent four months ago.  In a week, her current lease ends and she’ll be forced to go on a month-to-month lease. Another had hoped to buy but the rising home prices and the bidding wars pushed her out of the market. So, she’s struggling to quickly find a suitable place to rent for her and her grandson.

Both individuals have a clean criminal history, solid employment history, and are rebuilding their credit.  Yet, our housing market is making it impossible for them to choose a better home, a better neighborhood, a better foundation for their children.

Lower credit scores comes with higher interest rates, higher deposits, less supply, and often lower quality.  Safe housing is a right, not a luxury.  Yet, in today’s economic times so many builders, investors, and policies seem to be more concerned with profit and luxury.

The Deeply, Uniquely American Roots of Our Affordable Housing Crisis

But what does that cool trend mean for me?

I love data. I love numbers. I love context. I love it all.  I refer to myself as a data-geek and one of the most rewarding parts of my last career were data-nerd dates with faculty members who were curious.

As I’ve transitioned to real estate, I’ve found pockets of people with similar curiosity.  They know that the growth in the economy is important and they believe that if they dig deeper they could figure out how it impacts their strategies.  However, for the life of them they don’t have the time or the inclination to sit down and delve into it.

According to Berkadia report on Dallas-Fort Worth, “The enormous leasing activity [in 2018] is projected to drive occupancy up 50 basis points to 95.2%.”.  In short this means that there will be more demand than supply. So, landlords who have vacancies can charge more for their supply; the market will support higher rents.

But, what does the trend mean for a real estate investor who owns single-family homes with long-term leases and tenants.  Does this mean that she misses this opportunity? Well, it depends.

You could always increase rents. When you notify the tenants, explain the increase is the result of rising costs.  If the tenants balk at the idea of a higher rent, then when they look at the supply they will see the higher rents for themselves.  If you price it appropriately, staying will be more appealing than the hassle of packing and moving.