In a rapidly shifting commercial real estate environment, discipline and patience prove just as important as strategy. In a recent episode of NAIOP’s Inside CRE podcast, Kathryn Hamilton, CAE, vice president for marketing and communications, NAIOP, spoke with Jordan Lott, president and CEO of Lake Washington Partners, to explore how the family-owned firm is navigating today’s challenges while staying focused on long-term success.
From its founding, Lake Washington Partners has taken a generational view of real estate. The firm operates across 10 states and multiple asset classes, including industrial, multifamily and mixed-use. But what sets it apart is how it evaluates growth.
“We don’t view each building individually,” Lott explained. “We’re trying to build one of the U.S.’ great real estate portfolios.”
This portfolio-first mindset has guided the company’s evolution from its industrial roots to a more diversified platform. Each investment is evaluated not just on its own merits, but on how it strengthens the broader portfolio over time. The firm may hold assets across generations.
“If you’re building a building with the mindset that your kids are going to own it 30 years from now… you make very different decisions,” Lott pointed out.
Today’s real estate environment is marked by higher interest rates, tighter capital and broader economic uncertainty. As a result, “[Lake Washington Partners] have chosen to be ultra-conservative at this point in the cycle,” Lott said, though the firm remains active and opportunistic, just focused on the fundamentals. “We’re not trying to financially engineer an outcome.”
Industrial, where the firm got its start, is still a core focus, and Lott expects long-term demand to remain strong. Their presence in multifamily is growing, too – and while Lott acknowledged that near-term rent growth may be limited, he’s confident in long-term fundamentals. “People are always going to need a place to live,” he said, and in a world with increasing unaffordability, there is upward pressure on apartment rents.
One of the biggest hurdles developers face today is entitlement risk, Hamilton noted. Lengthy approval processes, regulatory challenges and community opposition can all delay projects and increase costs. “How do you approach municipal relationships and community alignment so that projects make it across the finish line?” she asked.
“Entitlements are challenging across the country,” Lott agreed, and ultimately add to the cost of a building.
“I will call out Hanover County [located in central Virginia, 12 miles north of Richmond] where we’ve done several projects over the last few years, as being incredible to work with and really forward-thinking about wanting developers to come into their market and to get projects done.”
Shifting gears, Hamilton asked Lott how the firm’s investment decision making today is driven by data and technology versus experience and instinct.
Lott believes strong data combined with disciplined decision-making is what ultimately drives success. And as the use of AI proliferates, Lott emphasized the importance of human judgment.
“I always ask myself, is this a great real estate, or are we just trying to get a deal done?” he said.
Looking ahead, Lott offered straightforward advice for developers preparing for the next cycle: “Take the long-term approach to everything you do. Make sure you operate with integrity always. And be patient.”
Listen to the full episode of the Inside CRE podcast.
This post was created with the assistance of AI tools; all content was reviewed by the author.
