CHICAGO: Why Inland's CEO Loves Short Leases
Meet Mitchell Sabshon, who took the helm of Inland Real Estate Investment Corp last August. With consumer confidence and spending up, and unemployment down, he advocates a shift from a more defensive investment strategy (protecting downside risk) to an offensive one to participate in the growth of the economy. For real estate, that means properties with shorter lease terms (ex. multi-tenant office, retail, multifamily) that offer more chances to increase rents and boost returns. He calls this a “harmonizing theme” as IREIC designs its investment products, like Inland Real Estate Income Trust (IREIT), which is focused on acquiring primarily core, multi-tenant retail assets.
Being smart about how you buy real estate is key, but real value for investors is created by blocking and tackling, he says. (As if the photo wasn't enough to let you know he was a sportsman.) A landlord must operate real estate intelligently to increase revenues and reduce expenses, while keeping tenants happy through property management, asset management, and leasing. Mitchell has been a passionate triathlete since his early 50s, and now competes to raise money for The Leukemia & Lymphoma Society to honor a friend that passed away. He’s helped almost 100 people do their first triathlon (even teaching one grown man to ride a bike) while raising over $750k as a group for the cause.