M Patrick Carroll is a real estate entrepreneur and the
founder and CEO of CARROLL. He recently contributed his thoughts to Thrive
Global about how his company has taken a different approach to market
re-emergence after the COVID-19 pandemic. According to real estate expert M Patrick Carroll, balance is key
to success.
How
the COVID-19 Pandemic Impacted the Real Estate Market in New York City
The largest city in the United States experienced disruption
in the real estate markets during 2020, just as smaller cities did. According
to M Patrick Carroll, many buyers put their desire to purchase real estate on
hold due to the strict coronavirus mitigation efforts that limited their
options. With numerous physical real estate offices closed, agents had no
choice but to switch to virtual showings.
From a buyer’s perspective, seeing a property online or
purchasing it sight unseen were both unattractive options. From a seller’s
perspective, many chose to temporarily take their property off the market until
they had a better understanding of how market changes would play out.
What CARROLL Founder M Patrick Carroll saw happen as a
result of the uncertainty was that real estate brokers and agents proactively
shifted to operating their business from home. They quickly learned how to
conduct most transactions online, including lease signings, online payments,
and virtual closings. Conducting these transactions online soon became the norm
and not the exception.
Commercial
Landlords in New York City Experienced Significant Disruption
With numerous tenants no longer commuting into the city,
commercial landlords saw their vacancy rates increase significantly. To keep their
businesses afloat, some landlords chose to reduce rent by as much as 20 percent
or offer concessions on rent for several consecutive months. These actions
naturally resulted in a dramatic decrease in rental income.
How
M Patrick Carroll is Leading an Innovative Approach to Real Estate Investing
By early summer 2021, most New York City companies with
physical locations recalled staff and resumed normal operations. This has been
good news for the local economy. Demand for commercial real estate is once again
strong, especially in the Tribeca and Soho areas. Sales, leasing, and the
demand for high-end properties are all on the rise.
CARROLL sources private capital from global investors to
fund its investment strategy. Because of the company’s private capitalization
structure, its leadership can pursue their own business objectives without
needing to obtain approval from a Board of Directors.
Taking this approach to funding has also enabled CARROLL to
avoid a phenomenon known as herd mentality. Major market players typically jump
on a trend shortly after it emerges, followed shortly by second-tier investors.
These actions result in investment gaps with significant potential.
CARROLL recognizes the opportunity and acts quickly to
obtain properties that support the company’s goals and mission. Real estate veteran M Patrick Carroll also assigns
in-house financial analysts the task of researching underperforming and
undervalued assets to uncover new opportunities.