Location, Liquidity, Luck®: A Different Way to Look at Real Estate Investing

More than a decade ago, Next Realty’s Founder, Andy Hochberg, was contemplating the state of the commercial real estate industry. He believed then that the age-old precept, Location, Location, Location no longer held true. He concluded that a AAA location, alone, no longer guaranteed a property’s success.

In its place, Andy coined the phrase: Location, Liquidity, Luck®.

The aftermath of the great recession gave credence to Andy’s claim. Today, the notion is further underscored by the global health crisis, resulting in unprecedented financial ramifications.

More than ever, success in the world of real estate requires the three components of Location, Liquidity, Luck®. Location will always matter. Liquidity is important because cash flow is dependent on the predictability of the overall economic landscape and/or an individual tenant’s financial position and rent payments. In addition, sometimes a little luck (as well as perfect timing) goes a long way.

Note: Andy Hochberg’s new article on Location, Liquidity, Luck® is scheduled to be published by Commercial Property Executive.