Opportunity
Coming soon!
“Lakeshore Solar Partners” is completing its first 2 projects, and has raised capital for completing new projects in 2025. We will be providing more information soon.
The Multi-Family and Industrial sectors continue to have favorable demand charactoristics. Today’s biggest distressed opportunity is in Office. Contact us to hear about our plans to capitalize on these opportunities.
Office Macroeconomics
The value of high quality office buildings has dropped by over 30%. Since 2016, US office fundamentals have been damaged by:
1) new supply
2) covid related occupancy decreases
3) tenant demand decreases from hybrid working
4) increased borrowing costs
5) recessionary fears
The confluence of these problems has created a 20-year high in office space availability, a drop in rental rates, and an increase in tenant concessions. The result is a significant fall in asset values.
Office Outlook
Tenant demand for office has decreased from hybrid working. Hybrid work will continue, so Lakeshore targets submarkets and buildings that are remote work attractors. Over the next 3-5 years, office buildings will polarize into “haves” and “have nots.” Making the distinction requires submarket and specific building investment expertise. Owners and Lenders that create repositioning strategies will outperform.
Lakeshore Holdings
Lakeshore’s investment approach targets specific assets in distinct submarkets. Transactional expertise is focused on maintaining and taking additional positions in strategic assets with capital from divesting non-strategic assets. Lakeshore’s strategic assets have strong demand from price-insensitive tenants in supply-constrained markets. These identified assets recover ahead of the market. The result: rapid recovery in asset income and value.
Lakeshore targets markets and buildings
High-quality office is not necessarily about new versus old
High-quality assets: buildings located in supply constrained markets with long term demand by price-insensitive tenants