Tag Archive for: sands investment group

The casual dining sector is evolving rapidly due to changing consumer preferences and technological advancements. These shifts are going to start having an impact on property values, making it essential for commercial real estate investors to understand how these trends influence investment potential. By aligning investments with the current trends shaping the casual dining landscape, investors can ensure long-term value growth and portfolio resilience.

1. Enhanced Customer Experiences and Property Value

Today’s diners seek more than just good food—they want memorable, immersive experiences. In response, casual dining establishments are investing in ambiance, expanding outdoor seating, and incorporating entertainment features. Properties that can accommodate these elements can help to increase the value, as they allow tenants to cater to the demand for experiential dining. For investors, choosing adaptable spaces that enhance customer experience can attract tenants who are willing to pay higher rents and sign longer leases. This ultimately boosts the property’s income potential and enhances overall asset value.

2. Digital Integration as a Value Driver

The adoption of digital solutions such as online ordering, delivery, and contactless payments has become a standard in casual dining. Properties with robust digital infrastructure—like high-speed internet and dedicated pickup areas—are increasingly appealing to tenants who want to stay competitive in the digital age. Doug Roland, investment advisor at Sands Investment Group, notes that with the rise of platforms like Uber Eats and DoorDash, operators have been able to “utilize smaller square footage, less parking, and reduce labor costs. This setup makes for more stable tenants which ultimately reduces investor risk.” Working with SIG investment advisors allows investors to have access to key insights into which tenants and operators are taking advantage of technological advancements and which are not.

3. Sustainability Enhances Appeal and Long-Term Value

Environmental consciousness is rising among both consumers and businesses. Casual dining establishments are thus seeking eco-friendly, energy-efficient properties. Buildings that offer sustainable features often command higher values because they align with tenants’ goals of reducing environmental impact and operational costs. Sustainable properties attract tenants willing to pay a premium for green features such as solar panels, gray water recycling, and LED lighting, which in turn strengthens tenant retention and supports long-term value growth. Investors who focus on sustainability not only meet current market demands but also mitigate potential risks associated with future environmental regulations, adding to their properties’ resilience.

4. Multi-Use Spaces Increase Versatility and Value

Casual dining establishments are increasingly interested in spaces that can serve multiple purposes beyond dining, such as hosting events or providing co-working areas. Multi-use properties that offer this flexibility tend to have higher market values as they can cater to diverse tenant needs and adapt to shifting demands. For investors, this versatility translates into greater revenue potential, as such properties can attract a broader range of tenants looking for spaces that maximize both utility and adaptability.

5. Prime Location and Accessibility as Core Value Indicators

Despite the rise of delivery services, location remains critical for casual dining success. Doug Roland emphasizes that “geography is very important, as properties in high-traffic areas with easy access to parking and public transit continue to attract a steady flow of customers”. For investors, focusing on properties in strategic locations helps maintain strong rental rates and consistent tenant demand. By choosing locations with prime accessibility, investors increase their chances for not only stable income but also long-term property appreciation.

6. Menu Innovation and Its Influence on Property Value

Menu innovation is another trend influencing casual dining real estate. Diners today are more adventurous, favoring unique, high-quality, and often health-conscious options. Restaurants focused on menu innovation often require adaptable kitchen spaces that can accommodate evolving culinary trends and specialized equipment. Properties with flexible layouts or potential for kitchen expansion appeal to tenants who prioritize menu creativity as a way to differentiate themselves. Investors who recognize this trend can select properties that cater to forward-thinking tenants, enhancing both rental income and property value.

How SIG’s Investment Advisors Provide Value to Investors

Our investment advisors bring valuable insights to investors in casual dining real estate by aligning investment strategies with key market trends. Through expert analysis, we identify properties that are adaptable, digitally integrated, and sustainability-focused, ensuring these assets meet current tenant demands and support long-term growth. By leveraging their deep knowledge of prime locations and multi-use property potential, our investment advisors help investors make informed decisions that optimize property value, attract quality tenants, and enhance portfolio resilience. This strategic guidance positions investors to navigate a dynamic market effectively and secure sustainable returns.

Contact our restaurant team today to learn more about our services and how we can help you achieve your financial goals.

The early education sector is emerging as a hotbed of commercial real estate investment, driven by profound demographic shifts and economic changes. Despite disruptions during the pandemic, demand for modern early education facilities continues to grow, making the future of this property type promising for savvy investors. Let’s explore the key factors shaping this opportunity and why now is the time to invest in the future of early childhood education.

1. Shifting Demographics & Post-Pandemic Recovery

Urban and suburban areas are seeing a surge in young families seeking quality early education for their children. While COVID-19 caused enrollment to plummet—dropping from 54% to 40% for 3- to 4-year-olds between 2019 and 2020—there’s been a steady recovery. By 2021, enrollment climbed back to 50%, and the trend continues upward.

Adam Bridges, Senior Investment Advisor at Sands Investment Group, notes, “We’ve seen a strong bounce back in childcare enrollments post-pandemic, which is encouraging for investors looking at performance at the unit level.”

This recovery presents an opportunity to meet the growing demand for innovative, high-quality facilities, especially as more parents re-enter the workforce. With young families and strong employment rates driving the need for modern learning environments, now is the time to invest in this resilient market.

2. The Impact of Expiring Pandemic Funding

As pandemic-related financial support for early education facilities ends, there’s a shift towards long-term sustainability. During the crisis, many centers relied on federal grants, but now the focus is on operators who can thrive independently.

Bridges explains, “When underwriting a center, we factor out pandemic grant money to ensure long-term viability. Investors need to pay attention to tenant resilience—especially as federal aid is phased out.”

For investors, this makes tenant stability a critical factor. SIG’s research highlights the importance of partnering with operators who are self-sufficient and able to provide stable cash flows. The right tenants will ensure a robust return on investment in a post-pandemic world.

3. Dual-Income Households & the Rising Demand for Reliable Childcare

With both parents working in most households, childcare has become a necessity. This societal shift has transformed early education facilities into essential infrastructure, especially in suburban areas where childcare options are scarce.

“Childcare is no longer a luxury—it’s essential for dual-income households,” Bridges emphasizes. “Investors who cater to this need are not only filling a market gap but also providing a vital community service.”

Investors who develop or repurpose properties into early education centers are addressing a growing societal need while securing solid investment returns. Facilities offering full-day programs that align with parents’ work schedules are in high demand, making them attractive both socially and economically.

4. Economic Resilience & Stability

One of the most appealing aspects of investing in early education is its economic resilience. Unlike other commercial real estate sectors that experience fluctuations, early education remains a steady and essential service. Parents consistently prioritize their children’s education, even in tough economic times.

“Early education is a stable product type with growing operators nationwide,” says Ryan Sompayrac, SIG’s Investment Sales Advisor. “We’re seeing expansion and development in the number of operators and facilities in the education space, making this sector a solid choice for growth-oriented investors.”

How SIG Helps Investors Navigate the Early Education Market

At SIG, we understand the complexities of investing in early education. Our team offers expert guidance in identifying high-quality tenants who can operate independently of short-term financial aid. We closely monitor market trends and policy changes to help investors make informed decisions.

Bridges further highlights, “SIG’s national platform allows us to connect our clients with out-of-state buyers willing to pay a premium, helping them maximize their investment returns.”

By partnering with SIG, investors can confidently navigate the evolving landscape of early education facilities and capitalize on the rising demand in this sector. Whether you’re a seasoned investor or new to this market, our team is here to help position your investments for long-term success.

Contact us today to learn more about our services and how we can help you achieve your financial goals.

Inflation continues to significantly impact the commercial real estate (CRE) market in the United States. It’s no surprise that high inflation rates coupled with increased interest rates has put consumer spending under pressure in recent months. Rising costs in goods, services, and gas has already had far reaching consequences in the CRE space. At SIG, our Investment Advisors are aware that as prices rise, while we may face challenges, significant opportunities continue to emerge for investors, developers, and tenants. We’re paying close attention to the impact of increased insurance costs in the United States and the effects of rising inflation on the market.

Inflation’s Impact on CRE

Rising Construction Costs: One immediate effect of inflation on the CRE market is increased construction costs. With construction costs expected to rise by as much as 6% this year, prices for raw materials like steel, lumber, and concrete are soaring, raising the cost of new development projects. This can delay or halt new construction, tightening the supply of commercial properties and driving up rental rates for existing properties. For example, in the industrial sector, average net rents are projected to increase at a pace of 5% over the next three years.

Higher Operating Expenses: Inflation also affects day-to-day operating expenses, including utilities, maintenance, and labor costs. Property owners may pass these costs along to tenants through higher rents or operating expense pass-throughs, impacting tenant retention and leasing activity. Proper underwriting and market knowledge is where brokers like SIG can add value to help investors see around the corner. If you know what can happen, you can prepare for it.

Interest Rates and Financing: As inflationary pressures mount, “the Federal Reserve’s decision to maintain the target interest rate at 5.25%-5.50% reflects a cautious strategy in the face of inflation”, reports The Global Treasurer. With current interest rates potentially near their peak, investors are anxious for a rate cut. High interest rates have large impacts on new acquisitions and refinancing of existing properties, slowing down transaction volumes in the CRE market.

Opportunities Amidst Inflation

Despite these challenges, there are opportunities for savvy investors:

Adaptive Reuse Projects: With new construction costs rising, adaptive reuse of existing buildings can be a cost-effective alternative. Converting underutilized or obsolete properties into new uses can provide investment opportunities while mitigating high construction costs.

Strategic Investments: Investors can take advantage of inflation by focusing on resilient property types and locations. For instance, industrial properties, in high demand due to the growth of e-commerce, may offer more stable returns compared to other sectors. Our team of Investment Advisors are experts in assisting investors make strategic investment decisions that will maximize the performance of their portfolios.

Value Retention in Hard Assets: Commercial real estate tends to retain value better than some other investment types during inflationary periods. Investors seeking to hedge against inflation might find CRE attractive, as it provides income through rental payments over a longer term period, and has a stronger chance of potential appreciation in property value.

Rising Insurance Costs

The country is facing unique challenges regarding inflation, particularly in insurance costs. The impact of climate change has made multiple regions prone to natural disasters such as hurricanes, floods and tornadoes which is significantly impacting insurance premiums.  According to the credit rating firm, AM Best Co. Inc, commercial real estate insurance costs skyrocketed to nearly five times the national pace. Inflation exacerbates this issue in several ways:

Specifically, investors in the Southeastern USA, or those looking to invest in the region, need to be aware that rising insurance costs exacerbates the issue of inflation because of the rise in hurricanes and floods. Inflation increases costs of materials and labor, thus the cost of repairs to damaged properties rise. High risk areas carry higher insurance premiums which drive up operating costs and impact bottom line profitability.

As advisors, we understand that rising insurance costs can influence investment decisions, as higher operating expenses may affect the attractiveness of certain properties or markets. Investors might seek regions with lower insurance costs or properties with robust mitigation measures to reduce risk and control expenses. Our wide range of inventory allows our expert Investment Advisors to recommend assets that fit your risk profile and investment goals.

While rising costs and interest rates pose challenges, strategic investment, and adaptive management can help mitigate these impacts. In the disaster prone regions, the added dimension of escalating insurance costs requires careful consideration and proactive risk management.

At SIG, our Investment Advisors are well-versed in navigating the complexities of the current inflationary environment, providing insights and strategies to help our clients make informed decisions and capitalize on opportunities in the commercial real estate market. By understanding the nuanced effects of inflation and employing targeted investment strategies, SIG remains committed to delivering value and stability to our clients amidst the evolving economic landscape.

When we say SIG is a values-driven business, this really comes to life with SIGives, our charitable giving arm. Through donating a combination of our time, energy, and treasures, we acknowledge that beyond the commercial real estate bubble, there are bigger things that require our attention, and that with knowledge comes responsibility.

This idea that SIG is bigger than any individual, and should have a positive impact in the world, but most significantly, within the communities where we work, predates the founding of the company. Back in 2010, when Chris and Liz Sands started SIG in Santa Monica, CA, they infused their own values associated with giving and service into the company’s DNA. They recognized that real estate brokerage can often be very self-focused, overly individualistic, and cut-throat, core traits that they wanted to avoid and why they wanted to do things differently with SIG. This alternative way of looking at the world and doing business has taken hold at SIG and has become such a fundamental pillar in our success, that the quarterly community outreach projects are no longer mandated but rather motivated and self-propelled by each of our current seven offices.  

“SIGives is absolutely the epitome of our culture and values, particularly collaboration, gratitude, and giving back. On more than one occasion, I’ve heard from candidates and new hires that the SIG culture and SIGives sets us apart and is a key reason why people want to work for us,” says Liz Sands, SIG co-founder.

SIGives Today

While we donate our time as part of SIGives, we also know that many of the organizations that we work with need more than just volunteers which is why we give a percentage of our revenue to organizations that are working to improve the communities in which we operate. In 2022, we proudly hit the milestone of $1 million donated in a year. 

When it comes to giving our time, each office location comes together quarterly for a day of giving back where we spend time volunteering with the causes closest to our hearts in our local communities. Recent examples are a local animal shelter in Austin TX and a beach clean up in Charleston, SC.  

Finally, it’s important to us that SIGives extends to our own team members. When someone has a cause that is near and dear to them, they just need to ask and we contribute to any charitable initiative that our team member is involved with in their personal capacities. 

SIGives in 2024

Our recent SIGives office activities included:

• Cleared invasive plant species from several acres of Valley Forge National Park – Philadelphia, PA
• Beach clean up on Sullivan’s Island – Charleston, SC 
• South Florida Broadcaster’s Celebrity Golf tournament in association with the My Family Matters foundation – Fort Lauderdale, FL
• Volunteered at Central Texas Food Bank – Austin, TX

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Events we are involved in this year: 

• We’re a headline sponsor of the Special Olympics Bocce Bash – Charleston, SC 
• Habitat For Humanity – Austin, TX
• CHOP event, Philadelphia, PA

Habitat for Humanity and the Special Olympics 

Long-standing beneficiaries of SIGives are Habitat for Humanity and the Special Olympics. Working in real estate, our support for Habitat for Humanity is apt. At ribbon-cutting ceremonies for newly built Habitat homes, we have met the new residents of homes we have helped build, which gives us our team a humble reminder of what real estate is really about and continues to fuel our passion for what we do. 

With Chris and Liz’s backgrounds as competitive athletes, the Special Olympics holds a special place in our hearts  – we believe that everyone should have access to the benefits and enjoyment that sports and competing gives you. Our teams have volunteered at games and we’ve sponsored events that have resulted in hundreds of athletes being able to compete at the Special Olympics.

“Donations from companies like Sands Investment Group are the lifeblood of Special Olympics South Carolina. Their loyal support over so many years has made our mission possible, and while they may not know you by name, our athletes carry thanks in their hearts for your contributions.”   

• Sandye Williams, Director of Development, Special Olympics South Carolina

Our Future Plans for SIGives

Looking ahead, we intend to grow and expand SIGives leaning into our CRE capabilities as strategic advisors and deal makers, all the while maintaining the program’s organic, grassroots ethos, where everyone at SIG feels ownership and has the ability to shape our charitable activities. We are honored to work with the organizations we do and proud of how SIGives continues to bring to life our culture, our values-based approach to CRE brokerage, and the SIGnificant difference you experience when choosing SIG.

In the ever-evolving Quick Service Restaurant (QSR) landscape, staying ahead of changing consumer behaviors is not just an advantage—it’s a necessity. Today’s QSR properties are not merely about fast food; they’re about smart, sustainable choices, technological advancements, and a commitment to quality that resonates with a new generation of consumers. It’s also becoming increasingly evident that in this dynamic arena, the role of informed, expert guidance cannot be overstated. This is where our team of product-type specialists come into play, offering expertise and insight into the QSR investment landscape, ensuring our investors are not just keeping pace but actually setting the pace in the industry. Read more →

Charleston, SC (August 15, 2023) – For the fourth time in a row, Sands Investment Group (SIG) is elated to report today that they have made the Inc. Magazine’s list of America’s Fastest-Growing Private Companies. The annual Inc. 5000 list is the most prestigious ranking of the fastest-growing private companies in America. Determination paired with data-driven advancements allowed for growth in both physical presence in the community and the scope of the success of the company’s pursuits.  Read more →

What is a Medical Office Building?

Often located near hospitals or on hospital campuses, medical office buildings (MOB’s) are a type of commercial real estate building that falls under the office asset class. They differ from traditional offices because of the building requirements needed to satisfy the needs of healthcare facilities with features intended specifically for use by physicians and other healthcare personnel such as waiting, exam and operating rooms. MOB’s are typically built with considerations for superior soundproofing for doctor-patient confidentiality, advanced air ventilation standards and have special requirements around parking and ADA accessibility.

3 Reasons You Should Invest In Medical Office Buildings?

Medical office buildings are seen as a lower risk commercial real estate investment for many reasons.

1. Healthcare is a fundamental human need that will not go away nor diminish. People will continue to need medical attention regardless of their financial situation. The COVID-19 pandemic has shown how resilient the industry is. This is demonstrated by the sector’s robust rental income, which has remained over 95% for the last two years. Most MOB renters were able to pay their rent on time as patients continued to seek treatment despite the economy. While elective treatments could be postponed, those who are unwell or require urgent medical care will still need to visit the hospital whether the stock market is rising or falling.
2. Forecasted increase in demand. Due to the large size of the baby boomer generation individuals over the age of 65 will increase by 73 percent between 2010 and 2030. One in five Americans will be a senior citizen. Easier access to medical care will be critical for the US’s aging population. People tend to visit the hospital more the closer they get to retirement. Senior citizens typically visit a doctor ten times more often than those of a younger age. These increased medical needs create a higher demand for more medical offices building locations specifically close to suburban areas and neighborhoods.
3. History of strong performance. If you take a look at the top 50 MOB markets in the US, transaction volume has grown from $18.2B to $24.5B in the last quarter alone, vacancy rates have fallen 40 basis points in the first half of 2022 to 8% and transaction volume has also increased by 79.2% from 2021, setting yet another record for the sector. Higher prices don’t always mean higher rents and having a trusted investment advisor who is familiar with these markets is important in order to avoid investment deals with weaker cash flows. If you know where to look, medical office properties in specific markets provide a solid tenant mix that will yield long-term value for investors.

Learn More With Sands Investment Group

If you want to invest in medical office buildings, you can trust that Sands Investment Group’s specialized Medical Office Building team will provide top notch advice. We are a commercial real estate brokerage firm specializing in purchasing and selling commercial investment properties for private investors and organizations throughout the United States. Contact us today to learn more about our services.

Charleston, SC (August 16, 2022) – For the third time in a row, Sands Investment Group (SIG) is elated to report today that they have made the Inc. Magazine’s list of America’s Fastest-Growing Private Companies. The annual Inc. 5000 list is the most prestigious ranking of the fastest-growing private companies in America. Determination paired with data-driven advancements allowed for growth in both physical presence in the community and the scope of the success of the company’s pursuits. 
Read more →