Why M Patrick Carroll Chooses a Different Approach to Real Estate Investing

 


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.

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