The Flex Focus | December 2025

December Focus

Flex Real Estate had a great year in 2025, and we are looking forward to an even better year in 2026. In 2025, we added a great project in Dublin, OH, that will be the cornerstone of our investment portfolio; professionalized our accounting and property management systems; and adopted an investor software that will significantly improve our communications and set-up time for new investments. We are proud of the year we had and appreciate all of the investors, shareholders, brokers, property managers, and other third parties that made this possible. “It takes a village” is an extremely apt phrase for commercial real estate.

As we look forward to 2026, we have our sights set on the big goal of acquiring and developing $20M in commercial real estate, with a mix of owner-occupied and investment properties. We have a strong pipeline heading into 2026, but in the theme of the season, I figured it wouldn’t hurt to write a little wish list for 2026 for things that are outside of our team's control that would help us reach our goal for the year.

Andrew’s Real Estate Christmas List

1. Lower Interest Rates: Low rates are the gas pedal, and high rates are the brake. We would love to see further reductions in interest rates, and I would point out two distinct reasons. The first is in the leasing space: as rates decline, companies will be able to justify committing to large equipment purchases, adding inventory, or updating their offices or manufacturing spaces. Specifically, a lower SOFR would be suitable for short- to medium-term purchases, as these are typically financed with floating-rate debt. The Fed has a more direct impact on floating-rate loan rates. The second is for acquisitions: we use fixed-rate debt to acquire properties, mainly for security and to project liabilities into the future. In real estate, this is influenced by treasury rates; lower treasury rates allow for more cash flow during the hold and make underwriting for acquisitions more attractive. As a real estate owner, why would you ever not want that?

3. More Loan Maturities: Anyone who financed a home in 2020-2022 will likely not be in a rush to go to the bank to refinance and accept today's current rates. With an extremely low base rate post-COVID, many real estate owners refinanced and financed acquisitions. In commercial real estate, these loans tend to be 5 to 10 years, vs. 15 to 30 years for home loans. Why is this relevant now? We are approaching five years since these commercial real estate loans were initially financed, and people will see the upcoming maturity and have an additional reason to sell. The maturity will bring the question, “Am I going to keep this property for five to ten more years at a potentially worse yield compared to before?” This will help Flex Real Estate achieve our goal because there haven’t been many sellers, and commercial property velocity has been low over the last couple of years. Increased velocity will allow us more opportunities to find quality deals.

Thank you,