In this interview Wouter Klijn from i3 (Australian institutional publication) speaks with Matthew Kaplan and Justin J. Hakimian. They discuss how when investing in real estate, you can’t take people and their motivations out of the equation.

Investors in real estate are known to be very hands on. They like to visit their buildings, walk around in them to touch the walls and see if maintenance is up to date. They like to get a feel for how the building is used and how its occupants interact with it. In case of a new building project or renovation, you can see these investors stroll around in hard hats, checking on the progress of various aspects of the build and the quality of the work.

But bricks and mortar form only one side of the coin. The people managing the assets are just as important. They are responsible for keeping a building in good shape and are the first port of call when things go wrong. Their understanding of potential tenants and the local market is instrumental in ensuring full occupancy. And their skill in negotiating rental prices is an important driver of profitability.