Industry veteran Chris Tokarski, Co-Founder and Managing Partner of Acore Capital, shared his wealth of experience and insights on the current state of the commercial real estate market in a recent Osher Partner event. 

From the impact of inflation to the importance of strategic networking and equity investing, Tokarski's perspectives offer valuable guidance for real estate professionals navigating the evolving landscape.

Tokarski began by highlighting the significant impact of inflation, particularly in the apartment sector, where he has observed "rental growth plus or minus 20% in a year" in multiple markets. He emphasized that this level of growth is highly unusual, even in historically booming regions.

"The first time we've seen many, many apartment markets where you're getting rental growth plus or minus 20% in a year. In Florida in particular, just to call that out as a state like it just doesn't it doesn't make sense that you have 20% we used to in California when you had booms and busts, Silicon Valley would boom and bust, and when it went down, it would go down, and it would recover, and it would have these 20% rent growth."

Tokarski also noted the staggering valuations of some coastal hotels, with some trading at over $1 million per key, expressing bewilderment at these high prices.

The Importance of Networking and Equity Investing

Reflecting on his career journey, Tokarski emphasized the significance of building and maintaining a strong professional network, advising aspiring real estate professionals to "harness your contacts" and diligently manage their database of connections.

"The first thing is to harness your contacts. When you meet people, think of your database and manage it as a long-term asset. The better you track every person you meet—how you met them, what they do—the more valuable it becomes over time. Years later, those same contacts could be in senior roles, and that connection will prove invaluable."

Tokarski also highlighted the importance of equity investing, noting that it is "where you really make money" and has brought him "as much happiness in the real estate field" as his debt-focused work.

When it comes to selecting business partners, Tokarski stressed the importance of honesty, hard work, and shared values, advising to trust one's instincts early in relationships to ensure compatibility.

"I think it's honesty, hardworking people that you want to spend that you want to be around and spend time with and you kind of get, usually your, I would also say your, your guts usually, right? You know, you can kind of tell pretty early whether you should spend time with someone and want to be involved with them."

Through his insightful commentary, Chris Tokarski has provided a valuable perspective on the current state of the commercial real estate market. By highlighting the impact of inflation, the evolving office and hospitality sectors, the power of networking and equity investing, and the importance of identifying the right business partners, Tokarski's experiences and advice offer a roadmap for real estate professionals looking to thrive in this dynamic environment.

The event was one of many organized by Osher Partners, a nonprofit dedicated to creating and promoting targeted business and educational opportunities for New York City's Jewish business community. The organization is co-founded by Shaya Lesches, who continues to drive Osher Partern's mission. You can learn more about Shaya Lesches and his work at shayalesches.com.

Interested in more inspiring conversations and events like this? Check out upcoming events.