Benchmarking Performance, with Norman Miller, Professor Emeritus at the University of San Diego

In this conversation, Joshua Kahr and Norman Miller, a professor emeritus at the University of San Diego, discuss various aspects of real estate investment. He explains the evolution of family offices and the challenges of benchmarking in real estate. Miller emphasizes the importance of long-term thinking and net present value in investment decisions. He also highlights the significance of storytelling and track records in the industry. Additionally, Miller discusses the role of risk, branding, and niche segments in real estate investment. He concludes by expressing optimism about the future of the real estate market.

Takeaways

• Real estate investment requires a long-term perspective and a focus on net present value rather than short-term gains. 
• Storytelling and track records play a crucial role in attracting investors and building credibility in the real estate industry. 
• Benchmarking in real estate can be challenging due to the lack of public data and the diversity of property types. 
• Investors should consider the risk-adjusted returns and the financing strategies when evaluating real estate investments. 
• Niche segments, such as data centers and self-storage, offer promising opportunities for real estate investors.

 

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Chapters 00:00 Introduction and Background 01:27 The Evolution of Family Offices 03:43 Challenges of Benchmarking in Real Estate 05:36 Determining the Right Level of Risk in Real Estate Investing 07:23 Internal Rate of Return (IRR) vs. Net Present Value (NPV) 09:17 The Importance of Storytelling in Real Estate Investment 10:28 The Challenge of Measuring Success in Real Estate 13:18 The Role of Risk in Real Estate Investment 14:17 The Importance of Track Records in Real Estate Investment 19:14 The Value of Branding in Real Estate 21:45 The Future of Private Wealth Managers in Real Estate 23:31 The Importance of Niche Real Estate Segments 26:06 The Role of REITs in Real Estate Investment 31:47 The Future of the Real Estate Market 33:21 Conclusion