Companies Considering Real Estate Development

Should More Companies Consider Real Estate Development

At recently reported by Bloomberg, Macy’s is planning to build a skyscraper on top of its famous Herald Square location in order to unlock the real estate investment potential inherent in its prime location. The plans currently call for a 1.2 million square foot tower. The plan also calls for the tower to be occupied by tenants other than Macy’s giving it a great opportunity to grow a cash flow positive asset, in addition to its recent success in growing its digital presence.

Another company looking to unlock the power of real estate development is Life Time. The fitness and now co-working company just announced plans to build several high-end multifamily properties in conjunction with its fitness and co-working spaces. The new concept called Life Time Living, which will be health-focused luxury residential residences.

BisNow reports on this new offering, Life Time Launches High-End Apartment Concept.

Combined with Life Time Fitness and Life Time Work, these projects will now be Life Time Villages…Residents who join these communities will obtainΒ direct access to high-end fitness facilities and coworking space.

Every apartment will offer a Life Time Athletic Resort & Spa and a LifeCafe. Renters will have access to a variety of one- and two-bedroom apartments.

“Living an active, healthy and happy lifestyle is dependent upon many factors. Among them is the critical element of where we choose to live,” Life Time founder, Chairman and CEO Bahram Akradi said in a press statement. “By integrating where we live, work and play in these Life Time Village developments, we’re creating far more time efficiency for members in their day-to-day lives while also having a positive impact on our planet. The design truly is a natural extension of our mission to inspire people to live completely healthy, happy lives.”

For both Macy’s and Life Time, real estate development allows each company to unlock stored value. With the creation of Opportunity Zones, it will be interesting to see what other companies follow suit and begin to utilize real estate development as a means to unlocking more shareholder value.

Savvy real estate developers and investors will find value in helping corporations unlock the hidden value in their real estate holdings.