Real Estate Investment Trusts (REITs) provide investors with a unique way to access the real estate sector, offering diversity, dividend potential and liquidity. They allow small investors to obtain exposure to a diversified portfolio– operated by experts. REITs also offer instant liquidity and regulatory oversight.
As strategic advisors focused on helping businesses adapt to changing market conditions, we at Ruskin Felix Consulting LLC., have been monitoring evolving investment trends and their wider implications. One area ripe for discussion is the role of real estate investment trusts – or REITs – in portfolio construction.
REITs have long provided a means for individual and institutional investors alike to gain exposure to commercial real estate returns. However, their purpose and relevance is being reconsidered in light of recent macroeconomic and societal shifts. Factors like remote work adoption, e-commerce growth, and interest rate volatility are prompting new questions around optimal property sector allocation and risk management.
Opportunities Amid Market Turbulence
At the same time– REITs also present opportunities for those able to identify potential value dislocations. Their structure continues to offer benefits like liquidity, income potential and diversification when part of a balanced strategy. For long-term investors with a disciplined approach, periods of short-term market turbulence may create compelling entry points.
As your strategic partners – we believe an informed dialogue around these issues can help align investment objectives with current realities. REITs undoubtedly remain an important asset class worthy of evaluation and ongoing monitoring. However– their role and risk-adjusted merits require reassessment relative to your specific circumstances and time horizons.
Evolving Landscapes Require Adaptability
As the commercial real estate landscape continues to evolve, so too must the role of REITs in investment portfolios. While their core function remains providing exposure to income-generating properties, the specific subsectors and geographical allocations that will prove most resilient and valuable going forward are open to debate.
Demographic and technological shifts are prompting reimagination of asset types like offices, retail centers and other commercial spaces. REIT managers must carefully evaluate how property demand and usage patterns are changing, with an eye towards repurposing or redeveloping holdings to stay ahead of disruption. This requires both vision and flexibility to capitalize on emerging opportunities while mitigating risks.
Diversification and Disruption Management
At the same time, diversifying beyond core sectors like – offices and apartments into specialised niches like data centers – cell towers or infrastructure could help REIT portfolios weather economic cycles more smoothly. Such properties are often tied more closely to non-cyclical demand drivers.
Geographic selection also merits fresh consideration given variations in work-from-home adoption, e-commerce penetration and other macro factors across markets. A more tailored, dynamic approach to REIT investment may be prudent relative to broader market indexes.
With diligent research, the asset class still presents potential for prudent & long-term oriented investors. But maximising risk-adjusted returns requires re-evaluating traditional assumptions and staying abreast of structural changes reshaping real estate demand.
While working for the roofing contractor’s industry, which is a large and growing market that is expected to reach USD 51.9 billion in 2021. We have provided comprehensive market research, competitive analysis, pricing strategy, traffic analysis, key competitive advantages, and customer acquisition strategies for the industry. These documents and analyses provide valuable information and insights on the current and future trends, challenges, opportunities, risks, and strategies in the industry.
The roofing contractors’ industry is driven by factors such as the increasing demand for roof replacements and repairs, the rising adoption of energy-efficient and eco-friendly roofing materials, the growing construction activity in residential and commercial sectors, and the favorable government policies and initiatives for green buildings.
The industry is also facing challenges such as low barriers to entry, high competition, labor shortages, weather uncertainties, and fluctuating raw material prices. The industry is segmented by service (roof installation, roof maintenance and repair), product (asphalt shingles, metal roofing, single ply roofing, coatings, low slope asphalt), end user (residential, commercial), and geography.
We have analysed the pricing strategies of different competitors in the roofing contractors’ industry, based on their service features, target segments, value proposition, cost structure, and competitive advantage. We have also provided a comparison table of the pricing plans and features of each competitor. We have suggested some best practices and tips for setting a pricing strategy that can maximize revenue and customer satisfaction.
We have also provided a traffic analysis dashboard that shows the traffic volume, quality, conversion rate, bounce rate, average session duration, and other key performance indicators for each competitor. We have also provided some recommendations for improving traffic generation and optimization. We have identified and highlighted the key competitive advantages of each competitor in the roofing contractors’ industry, based on their service differentiation, innovation, customer service, brand reputation, market presence, partnerships, and awards. We have also provided some examples of how each competitor leverages their competitive advantage to attract and retain customers.
Ruskin Felix Consulting helped Your Home Management to better understand a large and growing market that is expected to reach USD 5.59 billion by 2032, which is the property management software. We have provided comprehensive market research, competitive analysis, pricing strategy, traffic analysis, key competitive advantages, and customer acquisition strategies for the industry. These documents and analyses provide valuable information and insights on the current and future trends, challenges, opportunities, risks, and strategies in the industry.
The property management software industry is driven by factors such as the increased adoption of cloud-based technology, the growing shift of businesses toward digital transformation and customer engagement, the rising demand for online and personalized learning, and the vast data being generated across businesses. The industry is also facing challenges such as high competition, low retention rates, quality issues, and regulatory uncertainties. The industry is segmented by solution (AI and predictive analytics, content management and collaboration, asset creation, structured work management), deployment (on-premise, cloud), organization size (small and medium enterprises, large enterprises), end user industry (BFSI, telecommunications, manufacturing, media and entertainment, transportation, retail), and geography.
We have identified and evaluated the major competitors in the property management software industry, based on their product offerings, features, pricing, market share, customer reviews, strengths, weaknesses, opportunities, and threats for Your Home Management.
Post formulating the pricing strategies of different competitors in the property management software industry, based on their product features, target segments, value proposition, cost structure, and competitive advantage. We have also provided a comparison table of the pricing plans and features of each competitor. We have suggested some best practices and tips for setting a pricing strategy that can maximize revenue and customer satisfaction.
We have identified and highlighted the key competitive advantages of each competitor in the property management software industry, based on their product differentiation, innovation, customer service, brand reputation, market presence, partnerships, and awards. We have also provided some examples of how each competitor leverages their competitive advantage to attract and retain customers.
We have explored and evaluated the customer acquisition strategies of different competitors in the property management software industry, based on their marketing mix, customer journey, funnel stages, and conversion tactics. We have also provided some best practices and tips for developing and implementing effective customer acquisition strategies that can increase brand awareness, generate leads, nurture prospects, and drive sales.
Real estate consulting is a service provided by professionals that offer advice and direction on real estate-related issues. Clients of real estate consultants are often those in need of assistance with the market including buying, selling, managing or investing in real estate.
Market analysis, property valuation, feasibility studies, property management and investment analysis are just a few of the many activities that fall under real estate consulting. When it comes to transactions, legal and regulatory issues may arise and consultants can guide clients to resolve these issues.
CONSULTING FOR THE INDUSTRY
The importance of real estate consulting can be seen in various ways such as:
Expert Advice: Real estate consultants provide clients with expert advice on various aspects e.g., property valuation, market trends, investment analysis and legal and financial considerations helping clients make informed decisions that are based on accurate and up-to-date information.
Market Knowledge: Real estate consultants have a deep knowledge of the local market involving current and future trends, supply and demand and other factors that can impact property values. This knowledge helps clients identify opportunities and avoid potential risks.
Customized Solutions: Real estate consultants work closely with clients to understand their goals and develop customized solutions according to their unique requirements ensuring clients receive personalized advice and support that is aligned with their objectives.
Access to Networks: Real estate consultants have extensive network of industry professionals namely agents, brokers, lawyers and financial advisors. This gives clients access to wide range of resources and expertise that can help them achieve their goals.
CHARACTERISTICS OF REAL ESTATE CONSULTING
The following are some of the characteristics of real estate consulting:
Objectivity: Real estate consultants offer best objective advice and recommendations to their clients based on their expertise and analysis of market data. They are not emotionally attached to a particular property or client and can offer an unbiased perspective on the best course of action.
Customization: Real estate consulting services are customized to meet the specific needs of the client whether it is buying, selling, leasing or managing a property, the consultant will work with the client to develop a customized strategy that aligns with their goals and objectives.
Collaboration: Real estate consultants work closely with their clients as well as other professionals in the industry such as lawyers, accountants, and contractors to ensure a seamless and efficient process. They act as a bridge between different parties ensuring effective communication and collaboration throughout the transaction.
Problem-solving: Real estate consultants are skilled problem-solvers who can anticipate and resolve issues that may arise during a transaction. Having the experience to navigate complex situations they can find creative solutions that benefit their clients.
Confidentiality: Real estate consulting services are usually provided on a confidential basis with the consultant protecting the client’s information and interests ensuring that the sensitive information is not disclosed to unauthorized parties and that the client’s privacy is respected.
BENEFITS
Some of the benefits of real estate consulting include:
Expertise: Real estate consultants are specialists in their industry and possess extensive knowledge of the market trends, laws and regulations that provide valuable insights and guidance to clients helping them make informed decisions about their investments.
Save Time and Money: Real estate consultants can save clients time and money by providing them with efficient and effective solutions to their needs helping clients identify properties that meet their requirements and negotiate favorable terms and conditions for the purchase or lease.
Maximizing Return on Investment: To maximize their return-on-investment clients can benefit from working with consultants who can aid in the process of locating properties with growth potential and devising a plan to raise the value of their holdings over time.
Risk Management: Consultants help clients manage their risks by identifying potential risks and providing strategies to mitigate them by analyzing financial risks, regulatory compliance risks and other risks associated with the purchase or management of real estate.
Network: Consultants have a network of contacts in the industry such as brokers, appraisers, attorneys and other professionals providing clients with access to valuable resources and help them find the right professionals for their specific needs.
REAL ESTATE CONSULTING FIRMS
THE ROLE OF REAL ESTATE CONSULTING FIRMS
Here are some of the key roles of real estate consulting firms:
Market Analysis: Real estate consulting firms analyze the current market conditions and provide insights into trends, pricing and demand that help clients in making informed decisions for their investments.
Property Valuation: Real estate consulting firms provide valuation services that help clients determine the fair market value of a property which is essential for buyers, sellers and investors.
Due Diligence: Real estate consultants perform due diligence on their clients’ behalf to verify that the property is in good shape and free of any environmental or legal concerns that could reduce its value or impact its intended use.
Project Management: Real estate consulting firms provide project management services that help clients oversee the development, construction and completion of projects.
REAL ESTATE CONSULTING SERVICES
The most common consulting services are as follows:
Investment Analysis: Real estate consultants assist clients in determining the profitability of different investment opportunities namely rental properties, commercial buildings and land development.
Property Management: Consultants help clients manage their properties which include maintenance, repairs, tenant screening, rent collection and other administrative tasks.
Feasibility Studies: Real estate consultants conduct feasibility studies to determine the viability of a proposed development project which includes financial analysis, market demand analysis and a review of zoning and regulatory requirements.
Asset Valuation: Real estate consultants provide clients with a valuation of their assets which is critical for making informed decisions regarding sales, refinancing or development.
Brokerage Services: Real estate consultants help clients buy or sell properties, negotiate contracts and provide guidance throughout the transaction process.
Strategic Planning: In order to achieve their client’s long-term real estate goals and objectives consultant can help them craft comprehensive and strategic plans.
Site Selection: Real estate consultants assist clients in identifying and evaluating potential locations for a new development project or business expansion.
According to a report by IBISWorld, the largest segment of the real estate consulting market in the US is property management and consulting which accounts for 38.5% of industry revenue whereas other segments include research, consulting (27.3%) and real estate appraisal and valuation (23.5%).
The industry is highly fragmented with no single firm holding a dominant market share. According to the same IBISWorld report the top firms in the industry (CBRE Group, JLL, Newmark Group and Colliers International) account for less than 25% of industry revenue.
HOW IT CAN BENEFIT REAL ESTATE INVESTORS?
Here are some ways in which real estate consulting can benefit real estate investors:
Market insights: Real estate consultants provide valuable insights on current market trends i.e. supply and demand, pricing and investment opportunities. This information can help investors make informed decisions about where and when to invest.
Property analysis: Consultant analyze properties to determine their potential for investment which comprises of evaluating the property’s location, condition and potential for growth among other factors.
Risk management: Real estate consultants can help investors identify and manage risks associated with investments which includes assessing potential legal or financial issues that may arise as well as helping investors develop strategies to minimize these risks.
Portfolio optimization: Consultant helps investors optimize their investment portfolios by providing guidance on asset allocation, diversification and other investment strategies helping investors achieve their financial goals and maximize returns.
Expert advice: Real estate consultants are experienced in their field providing valuable advice to investors such as financing options, tax implications and other financial considerations.
Negotiation support: Consultant helps investors negotiate deals with sellers, lenders and other parties involved in the investment process helping investors get the best possible deal and avoid costly mistakes.
In conclusion, Real estate consulting can help investors gain knowledge, perspective and backing they require to make sound financial decisions. Investors can improve their chances of success and move closer to their financial goals by teaming up with a consultant. We at Ruskin Felix Consulting provide consulting services within your budget, please feel free to contact us on contact@ruskinfelix.com
Ruskin Felix Consulting partnered with Wooths – on-demand private work booths to create a comprehensive business plan and strategy report by analyzing the project, global assessment, overall industry, total available market, serviceable available market, service obtainable market, product analysis, and understanding of the financial viability of the project by providing insights on cost assessment and the valuation metrics of Wooths.
Wooths helps you access work pods and meeting rooms that allow the working population to access quiet private workspaces on demand whenever they need it, all over the city: malls, hotels, coffee shops, metro stations and other convenient locations. They are completely soundproof pods and Wi-Fi enabled and available on an hourly basis. Wooths unlocks productivity throughout the city by unlocking workspaces that come in various formats depending on your need. The app allows you to book four types of workspaces: hot desks, meeting rooms, private offices, and smart work booths in spaces such as co-working, serviced offices, traditional offices, shopping centers, metro stations etc.
Wooths will partner with various businesses in the hospitality industry like cafes and hotels, which currently have only 30% occupancy due to COVID restrictions and lockdowns in various parts of the country. Other partners will be open in public places such as malls and parks, allowing customers to access work pods and hot desks in proximity to their houses. Metros and co-working companies will equally be important to Wooths’ business model.
The overall business model of utilizing free spaces across the commercial real estate to benefit from the new wave of work-from-home scenarios may play very well due to the lack of direct competitors in the field. However, the business is dependent on pricing, location and user experience and thus, those aspects should be taken care of while executing parts of the Wooths Project. Wooths should also focus on setting up the units in residential places to boost the average user rate per day across business models. Scalability is also an important factor. With most co-working spaces being utilized only 20-30% due to its high costs, low flexibility and distance from home factors, Wooths places itself as the best alternative for employees and freelancers across cities.
The valuation of Wooths is thus assessed at INR 482.83 Crores. At a 10% deviation range. The valuation range is between INR 434.55 Crores and INR 531.12 Crores. The total NPV of the FCFF for the Project is 35.38 Crores. IRR for the Project based on FCFF (Net Free Cash Flows) = 62.84%. IRR for the Project based on EBITDA (Net Earnings Excluding Capital Expenses) = 87.27%. The total Overall payback period as per the project metrics and projections is 4th Year. This is also the Year when Wooths will become Net Cash Flow positive with INR 13.25 Crores of Net Cash Inflow. The expected net cash burn will be INR 12.92 Crores, covered fully within 3 Years and 11 months. RFC believes the project will be very useful and will have great market potential post-COVID-19 in India.
Ruskin Felix Consulting LLC prepared a comprehensive feasibility study and strategy report based on the fractional ownership in real estate industry. We highlighted the product overview, product analysis, global outlook, regional outlook, value proposition and optimization, funding events, market sizing and the pricing market for the same. We focused on the feasibility of the project by building competitive advantages, providing insights on the gaps and opportunities that entail while undertaking the project. This report was aimed towards analyzing the viability of the fractional ownership company.
A percentage of an asset is owned as a fraction. Individual shareholders purchase fractional ownership shares in the asset, sharing usage rights, income sharing, priority access, and discounted rates with them. The use advantages fractional owners in real estate enjoy are on par with those of timeshare owners. For pricey assets like planes, sports automobiles, and vacation homes, fractional ownership is a frequent investment arrangement. The key distinction between timeshare and fractional ownership is that with fractional ownership, the investor owns a portion of the title as opposed to time-based units. In the case of fractional ownership, as the asset’s value rises, so do the value of the investment’s shares.
Solreva is the modern and affordable way to buy amazing properties in destination markets, without any of the challenges that comes along with homeownership. Solreva acquires elite homes in these destination markets which they then break up into eight real estate interests. Depending on how much time a customer wants to spend in that market and how much of a home they want to purchase from 50% to 12.5% of the property.
As a fractional ownership company, it is important to understand the average amount that people would be willing to invest when they think of purchasing a luxury second home. The average wealth of a person who is planning to invest into a luxury second home is approximately $55,00,000. The average income of an individual who is planning a purchase is around $6,03,000 and a luxury second home costs approximately $23,00,000.
Although the idea of fractional ownership may be relatively new in India, it will continue to be a significant part of real estate investing. Fractional investments have gained considerable popularity on international markets like those in the United States, Canada, China, Singapore, and Hong Kong. The ability for every generation of Indians to participate in and diversify their real estate, which was previously confined through the traditional path, and most did not have the financial wherewithal to do so, is made possible by the growing popularity of fractional ownership in the real estate market.
RFC helps clients generate long-term value for all stakeholders. We help clients transform, grow, and operate while fostering trust through assurance with our services and solutions, which are made possible by data and technology.
We balance ESG and risk mitigation in our professional services. Our consulting experts make sustainability a business priority with vision and pragmatism.
