Sam Zell: Property Investors Treated Property Like Jack And The Beanstalk

Johnny HopkinsSam Zell2 Comments

In his recent interview with TIP, Sam Zell explains why property investors are paying the price for treating property like Jack and the Beanstalk. Here’s an excerpt from the interview:

Zell: But the vast majority of retail sales were not fancy dresses. They’re socks and underwear and shoes and all kinds of stuff that could easily be bought over the internet.

And as a result, you go from Madison Avenue in New York at 56th Street to 87th Street, which used to be the prime retail in America in stores.

You got 28% of Michigan Avenue in Chicago vacant, Union Square in San Francisco. I mean, these were the citadels of retail sales.

These led and set the tone for the entire retail industry, and the owners of my real estate own a lot of vacant real estate. And you say to yourself, well, didn’t they see this.

And apparently not cause they continue trading these kinds of properties with relatively short-term leases left to go at prices that reflected, the jack and the beanstalk. Investors always have property solicitors to ensure they put their money in the right place.

The beanstalk was just going to keep growing and instead they’re saddled with dramatic losses.

So those are two examples of, if you did your homework, if you really understood supply and demand, if you really maintain a level of fear.

And by the way, I think that maintaining the level of fear is an incredible element in the creation of wealth. I think anybody who ain’t afraid is going to end up holding in the bag.

You can listen to the entire conversation here:

For all the latest news and podcasts, join our free newsletter here.

FREE Stock Screener

Don’t forget to check out our FREE Large Cap 1000 – Stock Screener, here at The Acquirer’s Multiple:


2 Comments on “Sam Zell: Property Investors Treated Property Like Jack And The Beanstalk”

  1. Mr Zell has become transparent with age and those that have had the opportunity to be part of his business world learned key lessons in business and life. You see no ego, only being the best at what you do, and make money with integrity. There has never been a Zell Tower / Hotel etc. Also the future will not be the past but will have opportunities to apply lessons learned including supply / demand and risk quantification will be critical.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.