Next Level 331: Why Office Is the New Gold Rush with Ash Patel

Office has been the punchline of commercial real estate for years. Ash Patel sees it differently.

In this episode, Chris sits down with Ash, managing partner of Invest Beyond Multifamily, to talk about the parts of commercial real estate that don’t get much airtime on this show. Ash got into real estate for a simple reason: a grumpy CPA told him “if you make it, you pay it,” and he wanted a better answer on taxes. His first purchase was a mixed-use building with college apartments above a convenience store, and it taught him the lesson that shaped his career. When the store’s air conditioning failed, his tenant paid to replace the whole system. Upstairs, the apartments brought clogged sinks and party damage.

From there, Chris and Ash dig into how commercial leases work, how commercial property is valued, and why Ash believes retail and suburban office are far healthier than the headlines suggest.

After 15 years in the corporate world and several businesses along the way, Ash Patel found commercial real estate, and it changed the trajectory of his life. Over the next 15 years he bought, developed, and improved retail, warehouse, flex, office, industrial, land, mixed-use, medical, bars, restaurants, vacant buildings, and fully leased triple net properties.

Today Ash and his team at Invest Beyond Multifamily buy value-add properties throughout the Midwest and Southeast. He is a hands-on property manager and full-time investor, and he runs a mastermind with a nationwide network of investors learning his approach. He also invests in and advises a number of businesses.

What you’ll learn

The convenience-store HVAC moment that made Ash a commercial investor
Why Ash says “I love my job” is often a story we tell ourselves
Why a triple net Starbucks or McDonald’s can mean almost no cash flow, and what happens if that tenant leaves
Ash’s advice for residential investors: start with a mixed-use building, and let the apartments cover the expenses
How corporate and personal guarantees change what happens when a tenant wants out
The service-call clause Ash adds to every lease, and the State Farm story behind it
Why commercial value is driven by income, and how one O’Reilly lease raised a strip mall’s value by $2 million in Ash’s portfolio
Why existing tenants are often the best source for filling a vacancy
Why commercial tenants kept paying through COVID
Ash’s case that retail is the healthiest it has been, despite the store-closure headlines
Why suburban office is down far less than downtown office, and the tenant interviews Ash runs during due diligence
How COVID, millennials moving to the suburbs, and the swing in remote-work productivity are reshaping where companies want office space

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Christopher Larsen is the founder and Managing Partner of Next-Level Income. Since “retiring” after 18 years in the medical device industry he dedicates his time to helping others become financially independent through education and investment opportunities. Chris has been investing in and managing real estate for over 20 years.

While completing his degree in Biomechanical Engineering and M.B.A. in Finance at Virginia Tech, he bought his first single-family rental at age 21. Chris expanded into development, private-lending, buying distressed debt as well as commercial office, and ultimately syndicating multifamily properties. He began syndicating deals in 2016 and has been actively involved in over $500M of real estate acquisitions.

In addition to real estate, Chris has invested in equities, oil & gas, and small business lending, as well as being active in Venture South, one of the nation’s Top 10 Angel Investing groups. Chris lives with his wife and two boys (and Viszla, Lucy!) in Asheville, NC where he loves spending time with them in the outdoors and enjoying the food and culture that the region has to offer.

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Next Level 331: Why Office Is the New Gold Rush with Ash Patel

Resources mentioned:

Listen to the podcast on your preferred platform:

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