Will Facebook’s Company Town Create A New Investment Trend?

Oct
15
2013

It appears as if Facebook intends to join the world of real estate investing, as recent reports hint at the development of a swanky apartment complex that compliments their headquarters in Silicon Valley. The project, titled Anton Menlo, will provide offsite housing for employees and units for sale to the general public. Will projects like this become a national trend in the real estate industry, and if so, how can individual investors capitalize on the revival of the company town?

It was recently leaked that Facebook is going beyond their newly designed business campus to develop a 400 unit rental complex. Some units will be reserved for employees, but the bulk are reportedly going to be offered up on the public market. While this appears to be a smart business move, it also indicates how bullish the top minds in Silicon Valley are on passive income trends.

Mark Zuckerberg’s latest project reportedly plans to expand the community in the company’s typical style; with tons of extra amenities. Features are expected to include: swimming pools, roof top entertainment areas, pet salons, yoga facilities and much more.

The Start of a New Real Estate Trend?

While the new project is anything but revolutionary, it will likely raise some eyebrows and require duplication.

Despite its faults, many individuals and enterprises aspire to join the ranks of Facebook. Inevitably, many will automatically follow in the tech giant’s footsteps. So don’t be surprised if large and small companies begin to partake in the movement, including Google and Apple.

This is, of course, just another twist on the company town of the industrial error. Many see it as an evolved form of the live-work trend we saw emerging at the end of the last housing boom.

How can more investors capitalize on this trend before it takes shape?

Corporate Housing

Fortunately, benefiting from this trend doesn’t require you to start a social networking site. Similarly, most companies, especially tech ones, don’t know where to start when building a campus or getting involved in real estate development.

The recent move by Facebook could signal a great opportunity for many to take their income property investing to the next level. Try looking for prime prospects in companies. Many may need to diversify their investments by expanding into the field of real estate.

You’ll find them all over the country, from Southwest Florida to Southern California.

Even as a solo investor, there could be plenty of ways to bring value to the equation. Anyone can justify a partnership if the right scenario presents itself. Perhaps you know the local land values or contacts better. Maybe you can provide property management, or have a waiting list of local tenants that could ensure a project’s viability and profitability from the start.

Keeping it Simple

For individual investors, there is an even easier way to keep it simple and cash in on this trend.

The most straightforward strategy is to simply develop a portfolio. Try purchasing existing rental properties which are in the path of expansion for major corporations or are well positioned.

Those that want to retain their rentals long term can go the corporate housing route by building relationships with companies and serving their housing needs. Make it even better by offering additional services and amenities.

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