Shalom Lamm is a real estate entrepreneur who has had ample experience negotiating deals over the course of his stories and extensive career. But there are significant changes that have come to the industry during that period of time that are worthy of discussion, recounting and not neglecting. Surely, a healthy and stimulating dialogue about the subject would be in everyone’s interests, as it helps educate and inform people concerning what the future holds for the industry.
According to Shalom Lamm, the changes that the industry has gone through have come in multiple phases. Much of it has been related and in fact been an outgrowth of changes in related industries – including, but not limited to the technology industry. The technology industry has indeed promoted a great deal of efficiency in the way of how real estate operates in a commercial context.
But what has also been viewed and noted is the changes in the demographic makeup of certain areas of the city – both in an urban and rural context. Certainly there are certain areas that have been gentrified over time. These areas’ gentrification have led to a windfall of substantial and immense proportions on the part of those that have actively sought to invest in the areas that have been the subject of these changes.
Their investment undoubtedly appreciated and benefited a great deal from the way the makeups of these areas have changes – and changed drastically so. The phase of gentrification can be broken down in various ways. First, the rents in these areas have significantly gone up; as a way of enhancing the quality of life of residents; but also as a way of padding the pockets of certain developers.
The fortunate developers and investors in the real estate industry who were first to the punch, when it comes to these noted areas and investing within them, have been the beneficiaries of these changes. The amount of capital one may have needed to invest in these areas in their pre-gentrification phase was rather limited. If one is to compare that with the capital needed to invest today, there is no comparison.
There’s a drastic difference in price – as the values have appreciated enormously. This is a function of the gentrification of the areas; but also of wise and prudent investments. Part of real estate is surely about having foresight to be able to scale and determine the ways in which an industry is going to evolve, change and indeed transform.
In fact, having that foresight is an ability that serves real estate investors better than in perhaps any other industry. It provides them the unique ability to understand trend lines and the ways in which capitalizing on them is indeed possible. These patterns that have been exhibited will continue. So let’s not fool ourselves.