To Smart Developers, 1 + 1 = 3

Imagine this. You're an investor in commercial real estate. Smart. Opportunistic.?Driven. You've just assembled some prime properties, perhaps for future redevelopment or perhaps for a corporate relocation. It's a great investment and you fully intend for it to be profitable.

The?community is growing,?elected officials are smiling, and you're a serious player in the game. Your balance sheet looks good. But still you wonder if?there's anything you can do to maximize your investment opportunity. What else is out there and, more importantly, how?can?you make the most of it???

First, that answer can only be discovered if you look into the future. I bet there are more opportunities in the environment?than you realize. What public investments are in the pipeline??A highway interchange to funnel more commuters your way? A transit station to attract?a car-free Millennial workforce??An economic development initiative to attract an industry sector? Keep in mind that if you can identify one, there are likely a few more hiding in the wings. No public entity wants one investment to be?an isolated occurrence.?Opportunity begets more opportunity.?

Second, who controls those assets and how can you make them work for you? The public sector is more interested in leveraging than you think. No public entity?has the money it needs?- or would like - to do everything it wants. Bring your ideas and?your investment strategy to the table and you will likely find others interested in aligning with?you.?Don't limit it to?the city or county governments. Talk to?development authorities,?community improvement districts, and other groups in-the-know. You may find some really interesting information and walk away with an opportunity to capitalize on what's to come.?

Third, are you speaking their language? Do you know their comfort level??The private sector is used to taking risks, the public sector...not so much. They may be very open to leveraging relationships, but they will still approach with caution. Your best bet is to have someone on your team with whom the public sector trusts. Just as you have a board of directors, agency heads have elected officials and?those elected officials are held accountable in the court of public opinion. Optics count. Make sure you can help them with the necessary win-win.

Opportunities are all around, including ones that leverage strategic partnerships. They may be?public-private, private-private or any other combination. Look beyond the existing numbers. You just may?find?a creative formula that works for you.

About the Author: Malaika Rivers specializes in building commercial real estate portfolios and communities through strategic public-private partnerships between CRE owners, developers, and governments. She is a leading expert in Community Improvement Districts (CIDs) and advises on their best use as powerful tools for real estate and economic development.