The function of commercial real estate is to provide space or facilities for commerce. Economic factors such as interest rates, unemployment, productivity, inflation, taxes, international trade and regulation affect real estate both directly and indirectly. We endeavor to be students of economics and business in order to fully understand the array of influences on real estate. Investing in real estate is often considered to be investing in the consumer product of business space, however unlike investing in the stock of a single company that manufactures a product or sells a service with reasonably predictable growth, investing in real estate involves many industries and therefore relative unpredictability. Managing that unpredictability, and finding all opportunities within every single investment requires time, resources, experience, and savvy.
Just like business, real estate markets are cyclical. This is a time tested and unavoidable reality, and it is an opportunity. Real estate is a fundamentally sound investment, in that it will never be completely without value. However the value it has will change over time, and not always in a positive direction. When and how real estate is bought and sold becomes a key factor to whether or not value is enhanced, so to that end, Triumph spends a great deal of time on the task of recognizing the cycles and their turning points. We also understand that it is important to be aware that when the trends are pointing in one direction, it may very well be prudent to go in the other. That is why it is imperative to translate economic news into real estate terms, especially at the local level.