Triple Net Investor@TripleNetInvest
Barry Sternlicht gives an insightful view about the challenges of real estate right now - and how to still make a lot of money in the current environment
Here's what he said:
"I think people, as they always do, tend to look in the rear view mirror and they look at a suboptimal performance of the real estate asset class across the last 3-4 years.
Nvidia goes up a trillion dollars in four months. Like the hot kids on the block are everything AI, everything chatbot, etc...
There are meme stocks that go from zero to $7 a share on a tweet.
Crypto - there's worthless coins with $20+ billion dollar market caps. There's a coin called Useless. It's [literally] useless. It debuted in March 2025 and it went to a $700 million value. And the coin says "we are completely useless"
In real estate people get rich but it's boring. You get rich holding on to it over long periods of time. It's not a day trading asset. The country right now is very impatient. So people want to play the hot thing.
Real estate looks sort of sad in your portfolio right now. The only thing it beats is treasuries. And even then, it's not even beaten that.
But you'll do well picking properties in the right cities... Everything is micro in real estate.
For example, I built a building in South Beach.
The first lease was $54. It's on the beach, and nobody built a new office building in 20+ years.
We leased it up in the pandemic. It's 100% leased. A tenant actually needs to grow, and they called us last week. They're paying $125 and we'll re-lease it at $175.
I mean, you can still make a lot of money if you get the micro market right."
