May 9, 2022

Sustainable Economic Advantage in the Real Estate Business

by

Mike Halupka

An important aspect of any real estate business is identifying competitive advantage. Lots of companies find advantage but few are able to sustain an advantage no other business can replicate. Warren Buffet coined the phrase "economic moat", which means, "a distinct advantage a company has over its competitors that allows it to protect its market share and profitability".

Given the state of the highly competitive state of real estate investment and develop across the globe, typical competitive advantages in the industry like data or information advantages, operational efficiencies, and emplacement are really just table stakes. It takes far more to stand out from the crowd. Even competitive advantages like having local connections, possessing strategic human capital, having a specialization by customer type or cost leadeship, while definitely more difficult to replicate, are still seen frequently among top performing pubic and privately-owned firms.

At Altis Capital, we invest a great deal of time thinking about economic moat — specifically our business strategy, capital allocation (debt and equity), and leveraged tacit and explicit knowledge. These certainly serve to strengthen our brand's economic moat and are not easily imitable, but the two most strategic competitive advantages at the core of our economic moat are our focus on relationships and experience.

People and their personal journey with our brand are  our first priority. Royal Capital group is family-owned business. It always has been. People who engage with us never get the feeling "it's just business". We manifest a sense of community and family, act in ernest for our stakeholders, and pursue lifelong relationships. In the real estate investment and development business, relationships and experience are rarely at a business' core. If you have not yet personally experienced what it's like to invest, collaborate or work alongside side us, we invite you to reach out.

NEWS

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CRE sales growth in the United States through Q1 has increased almost 50% percent over the prior year (2021) according to MSCI — with Retail and Hotel categories driving the highest double-digit growth. Take a moment to review Altis Capital's many retail, hotel and entertainment projects underway in the United States.

At Altis Capital, we invest a great deal of time thinking about economic moat — specifically our business strategy, capital allocation (debt and equity), and leveraged tacit and explicit knowledge. These certainly serve to strengthen our brand's economic moat and are not easily imitable, but the two most strategic competitive advantages at the core of our economic moat are our focus on relationships and experience. People and their personal journey with our brand are our first priority.

Esports industry revenue is expected to eclipse $1.5 billion by 2023 and demand for spaces tailor-made for gamers is high. Investors are looking for opportunities to capitalize on the growth. Altis Capital is currently exploring opportunities to raise the bar for live esports experiences with great venues in the United States sure to exceed the wildest dreams of gathering gamers and their growing spectators.

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