CEO on Retaining Staff During Asset Sales
John Carlson, CEO of Mark Taylor Companies, recalled making a commitment to staff retention after a downturn. He said, “We made a commitment—no one loses their job just because the asset sells. That’s how you build trust and lasting teams.” The firm prioritizes finding new internal positions for employees when a property is sold.
- The Chicago multifamily market is forecast to see robust rent growth in 2024, with expected increases between 3.2% and 4.5% across all submarkets. The city's apartment market occupancy rate was 95.1% at the end of 2023, surpassing the national average. - For real estate investors, the average capitalization rate in Chicago for multifamily properties with five or more units was approximately 6% for the two-year period ending in early 2024. The Midwest region as a whole recorded the highest average cap rate in the U.S. during the first quarter of 2024 at 6.0%. - Mark-Taylor Companies, founded in 1985, has grown to manage over 33,000 Class-A units and has developed more than 21,000 units. Before becoming CEO in 2025, John Carlson served as the company's president for seven years, having joined the firm in 2002. - Midwest multifamily markets are positioned for outperformance due to low vacancies and a limited construction pipeline, leading to some of the strongest rent growth in the nation. The region's diverse economy, spanning healthcare, manufacturing, logistics, and technology, helps drive housing demand and provides market resilience. - To enter the real estate investment field, firms typically seek candidates with strong skills in Excel and financial modeling. Experience in market research, analyzing supply and demand dynamics, and familiarity with industry databases like CoStar are also highly valued. - Real Estate Investment Trusts (REITs) offer a way to invest in a portfolio of commercial real estate and typically feature high dividend yields. However, their performance is often sensitive to interest rate changes; the Morningstar US Real Estate Index rose 5.16% over the last year, while the broader Morningstar US Market Index gained 14.78%. - Chicago's economy is a significant driver of its real estate market, with 32 Fortune 500 headquarters and nearly 450 corporate expansions or relocations since 2022. The metro area has a gross regional product of over $834 billion, supported by a workforce of 4.8 million. - Aspiring real estate professionals should focus on building a network by connecting with individuals in the industry and developing a strong understanding of real estate underwriting—the process of valuing commercial properties based on cash flow projections.
