Continuing the exploration of the Tempus approach to commercial real estate, we turn our attention to another, sometimes-neglected, participant in the process – buyers. As with those discussed in previous sections, Tempus aims to understand the motivations of buyers and works to deliver exceptional value for those buyers who engage with Tempus.

Buyers of commercial real estate are motivated by a wide range of factors, but there is one group whose concerns match particularly well with the Tempus model. Tempus caters to buyers seeking passive investments with reliable income streams. These buyers are typically individuals or small funds who are in and out of the market with changing conditions and circumstances. For this buyer group, Tempus offers a diverse menu of investment options not widely available to them.

How Tempus Benefits Buyers

Tempus’ approach to buyers is grounded in understanding their specific motivations and needs. Traditionally, buyers looking for passive investments with reliable income streams and limited risk to investment capital are relegated to purchasing retail properties leased by investment-grade tenants. Unfortunately, these properties are also favorite investments of major funds and REITs who leverage their size and low cost of capital to purchase the most attractive of these properties and drive down the investment yield on the remainder. These funds and REITs are long-term holders of their investments, effectively removing the best of these properties from the market indefinitely.

The Tempus model looks to invest in opportunities that thrive regardless of whether the environment promotes active buyers or dormant ones. During the purchase process and throughout the ownership period, Tempus works to position properties for steady income over an indefinite hold horizon with maximum appeal to the target buyer group. After owning these properties for a comparatively short time, Tempus makes a large portion of their portfolio available to the buyer pool providing a wide range of unique opportunities not typically available to this buyer group. Access during their investment window to a unique property type and geography along with an improved yield profile make Tempus offerings particularly attractive to this group.

How Buyers Benefit Tempus

Tempus finds considerable value in connecting with buyers of this profile. Tempus focuses on investments that generate increasing value as time progresses, often in the form of cash distributions. Because of this, Tempus can make a large portion of their holdings available to the buyer market with the advantaged position of true indifference as to whether market conditions favor a sale or a hold. This ability to deliver returns while holding indefinitely allows Tempus to achieve maximum total return by selling only to those buyers who fully value the prospects of a property.

Dan Andrews
CEO and Managing Partner