A data-driven investment.
At HBU, we leverage real estate analytics to drive actionable insights and create scalable and repeatable value.
Usage Value
Every property has a usage value and that value reflects the amount of profit the operator attributes to the locale and structure provided by the property. The higher the usage value, the more rent the operator is willing to pay.
Invest in the Highest and Best Use
“That use of a parcel which will produce the highest return or price to the owner.” – Floyd & Allen
Unique Characteristics
The Holy Grail of HBU is finding the unique pairing of a piece of land with a building that perfectly capitalizes on the land’s unique characteristics to maximize the cash flows that an operator will receive on the real estate investment. A property’s unique characteristics create its comparative advantage which in turns, determines its Highest and Best Use (i.e., for what use should the property be best served).
Present Value of Cash Flows*
What drives a property’s value is the present value of the stream of cash flows that investors expect the property will generate in the future, and the key components that attribute to those expected cash flows are the property’s structures and the land. While these components are fundamentally different, together, they can maximize the future cash flows of the property.
Resilient Investment
Innovation is important to building a resilient portfolio, but understanding where a property is in its lifecycle is even more crucial when analyzing a real estate investment opportunity. Knowing where and when to upgrade the structure of a property to weather physical, functional, and/or economic obsolescence can help reduce the significant loss of utility, and thereby value, of a property.