For this Field Note, we wanted to share some thoughts on an idea that has shaped many of our decisions over the years — the importance of staying small enough to remain flexible.
In real estate, there is often a natural pressure to grow. Larger portfolios can create efficiencies, attract institutional capital, and allow access to bigger transactions. Those advantages are real, but size can also come with constraints. As organizations become larger, the range of deals that move the needle tends to narrow, and the ability to adapt to changing market conditions can become more limited.
From the beginning, we have tried to build the company in a way that allows us to stay active without feeling forced to pursue deals simply to maintain scale. Most of our projects are relatively small by institutional standards, but that has allowed us to focus on locations and opportunities that might be overlooked by larger groups.
Flexibility also becomes more valuable during uncertain parts of the cycle. When markets slow down, financing becomes tighter, or leasing takes longer than expected, smaller partnerships often have more options. We can choose to hold assets longer, adjust development timing, or structure deals in ways that would be difficult for larger funds that operate on fixed schedules.
Another benefit of staying at a manageable size is the ability to remain selective. Not every year produces the same number of good opportunities, and we believe it is important to be able to pass on deals when the pricing, location, or risk profile does not feel right. Maintaining that discipline is easier when the business is not dependent on constant transaction volume.
We also believe that working in smaller partnerships helps keep interests aligned. In most of our projects, the investors, the general partner, and the operating team are all focused on the same outcome — building value over the full hold period rather than maximizing short-term activity.
None of this means that growth is not important. We continue to look for ways to expand the portfolio, enter new submarkets, and evaluate adjacent asset types when they make sense. At the same time, we want to do that in a way that preserves the ability to make decisions carefully and to adapt when the market changes.
Over multiple cycles, we have found that flexibility is one of the most valuable advantages a real estate investor can have. Markets move, capital flows change, and opportunities appear at unexpected times. Staying small enough to respond to those changes, while still large enough to execute projects effectively, has served us well so far, and we expect it will continue to be an important part of our strategy going forward.
