Our team uses rigorous strategies to successfully execute numerous real estate repositioning projects. In part-two of our strategy features, we dive into our evaluation of a city’s economic and business attractiveness and how it enables Cacoeli in achieving superior returns.
What is economic and business attractiveness?
A city’s economic and business attractiveness can be defined as the available/open offerings made by a local entity, such as a city’s government, for entrepreneurial ventures and established businesses within its borders. This can come in the form of grants, interest-free loans, and other financial and/or zoning elements that are geared towards increasing, enhancing and/or strengthening local business development.
It’s all in the Documents
Core documents, such as Official Planning documents, zoning-designations, programs and funding towards local entrepreneurialism can reveal a lot about the future of a space. In critically assessing and evaluating planning documents, Cacoeli is well equipped to propose a suitable project for a given location, ensuring that it fits nicely within the existing and future landscape.
Economic-Business Attractiveness & Real Estate
Another critical research variable considered by the Cacoeli team is the relationship between business growth and real estate demand. When localities encourage, support and maintain business development, greater job opportunities begin to open up. More jobs, particularly high-skilled jobs, triggers an influx of skilled-workers to fill the job supply demand. Increased numbers of skilled workers impacts overall average earnings and income levels of a particular city, while also applying pressures on its housing availability and supply. Increased employment opportunities lead to an influx of high-earning workers, and a decrease in housing vacancies and supply, causing land scarcity and increased, competitive land values. When local economies experience such a change, property developers express greater interest and initiate additional development projects. This cycle is illustrated below:
So…Why Does Economic and Business Attractiveness Matter to Cacoeli?
Our job as your asset manager is to seek, assess and evaluate information to the best of our ability and advantage. By interpreting past, current, and future economic plans for a city of interest, Cacoeli is able to set realistic expectations and achievements for all of our opportunistic projects.
The goal: minimize operation costs, maximize investor returns.
Learn more about economic and business attractiveness from our CEO, Jedidiah Liu, in this short-clip:
Interested in getting involved with our deeply-researched, opportunistic, multi-family real estate investment projects?
Get in touch with us today!