Real Estate and Opportunities for Commercial Development:  The interesting aspect of Andrew’s real estate career is that he was born and raised in Eastern Pennsylvania near Philadelphia (ask him if he grew up near Doylestown).  While at Pitt Business, he started to see potential in Pittsburgh’s real estate market, which has led him to build a large portfolio of apartment buildings and commercial properties in the North Side, the South Hills, Moon Township (near the airport) and the West End (among others).  Given what you know about local real estate in an area that you are familiar with, which specific neighborhoods would you target for your portfolio (i.e. what is the commercial potential?)

There are many neighborhoods already established in Doylestown and property in the town itself is extremely expensive because of the location. Therefore, if I were to build in that area, it would be in the surrounding area such as Newtown. Newtown is very widespread and contains a good amount of farmland that could be developed into new neighborhoods or businesses. The land is also cheaper out there than in Doylestown, so it would be a better investment because the property would be worth more once either a neighborhood or business is built on top of it. In addition, Doylestown is becoming extremely crowded, the traffic can get pretty bad, and the lack of parking has been a long-standing issue, so many new businesses may want to move outside the immediate town in order to have less competition and make it more easily accessible for their customers.

The Social Impact of Real Estate: In addition to the commercial opportunities in the Pittsburgh real estate market, Andrew also emphasizes that real estate has tremendous potential to generate a positive social impact by supporting a stock of good quality apartments at affordable prices – with an emphasis on supporting financial literacy among his tenants.  Based on the area you wrote about above, which neighborhoods that you know of could benefit from this combination of good quality apartments with reasonable rent (plus an attention to financial literacy)?

I’m not sure if the area I previously mentioned would need good quality apartments with reasonable rent because people would most likely be willing to pay a good amount for a large, new construction house close to Doylestown. However, real estate right outside of Philadelphia may be a better fit for this business model because there are many commuters who work in the city but can’t afford to live there. They may be in need for good quality apartments with reasonable rent because it could cut their travel time into the city if they live closer without having to pay a large amount for rent every month.

Other Examples Like This?:  Based on your review of real estate as an area for opportunities in commercial development and social impact, how do you see real estate being relevant in the work you want to do in the future?

If I were to manage a business in the future, I would have to decide what location would be best depending on the industry and price of the land or building if it is already established. There are many businesses that fail within the first two years for many reasons, but sometimes due to a poor location, which can be prevented if you plan and look at the commercial potential within real estate for a certain area.