Capitalizing on America’s Heartland: Tempus Realty Partners and the “Rise of the Rest”
Lane Bryant Headquarters - New Albany OH
Steve Case, tech visionary renowned for leading AOL to its iconic status during the dawn of the Internet age and subsequently facilitating a groundbreaking $165 billion merger with Time Warner, has always been on the cutting edge of technology trends. His success in forecasting the future of technology and identifying limitless opportunities is unmatched. Since stepping away from AOL, Case's primary mission has been fostering the growth of a new generation of revolutionary companies.
Nearly a decade ago, as the tech sector was engulfed by the burgeoning realm of social media and the integration of these platforms with mobile devices, Case set his gaze on the horizon, towards the next big tech wave. His 2015 book, “The Third Wave,” discusses the transformation of the internet era and how pivotal aspects have evolved over time. He compares the drivers of the first wave — marked by companies like AOL — to those of the second wave, dominated by social media and mobile apps. Against this backdrop, he unveils his prophecy of an upcoming "third wave" and introduces the concept he coined as “The Rise of the Rest”.
The success of firms in each wave, Case posits, has been greatly influenced by their geographical positioning. Initially, proximity to industry behemoths like Apple and Microsoft and power hubs such as Washington and New York were crucial, given the need for strategic partnerships and regulatory navigation. The second wave, however, pivoted away from this model. Companies sprouting novel products focused on assembling a highly skilled workforce to bring their visions to life, largely in locations already established as tech hotspots.
The impending third wave, according to Case, signals a monumental shift with significant implications for not only the tech industry but also the realm of real estate. He envisions a world where internet and networking capabilities permeate everything, making the term "smart devices" redundant—because everything will inherently be "smart". This third wave, akin to the first, demands tech innovators to cultivate critical partnerships, though not with Silicon Valley's tech giants or powerhouses in New York or Washington. Instead, third-wave alliances will unite tech innovators with manufacturers scattered across America's heartland, the creators of our everyday items. This shift, Case believes, will usher in a golden age of renaissance for middle America.
Case’s "Rise of the Rest" is more than a theory; it’s a conviction he's fervently invested in. Over the past decade, he's embarked on eight bus tours across America, investing over $300 million in 200 companies across 100 different cities. Once a budding concept, the "Rise of the Rest" is fast becoming a definitive trend in American business.
Case's impressive track record for predicting innovative trends suggests that the "Rise of the Rest" would likely have materialized organically. However, external factors such as the American manufacturing renaissance, sparked by tariffs and trade wars and further propelled by supply chain disruptions and geopolitical tension, have fortified this trend. Moreover, the migration of tech talent following COVID-related shutdowns has quickened this shift, with more workers seeking opportunities in areas offering a higher quality of life.
The "Rise of the Rest" presents a seismic opportunity for real estate investors. Much like predicting the next wave of technological innovation, successful real estate investing requires one to look beyond the immediate environment and focus on the horizon. Through that lens, we see traditional gateway markets, which have historically benefited from an incessant inflow of capital and a skyrocketing property market, now confront a challenging new reality as resources begin flowing toward middle America. Meanwhile, heartland cities like Minneapolis, Columbus, Charlotte and Indianapolis are facing their most promising prospects in decades.
Tempus Realty Partners has long been an active player in these Rise of the Rest markets, cultivating relationships vital for judicious and profitable real estate investments. Over the past year we’ve invested more than $300 million in these markets with a focus on technology companies and industrial properties which aligns perfectly with Case’s vision for the next chapter of America's economic evolution. This positioning allows us to capitalize on the transformation as it continues to gather momentum.
Dan Andrews
CEO