Stos: Smart investors are seeking assets in irreplaceable locations in markets with high barriers to entry. This strategy is integral to our investment thesis; we strictly invest in well-located assets in urban and coastal markets where demand is high. Beyond that, we look for assets that are in need of stabilization, repositioning or redevelopment with attractive upside potential.

Owners like us with strong operational platforms are able to acquire assets well below replacement costs and implement improvements and smart leasing strategies that can drive property value up and sustain that value over time.

GlobeSt.com: How do firms formulate a strategy for enhancing that value in an economical way?

Stos: The best strategy is to always think ahead. We're in a cyclical industry, and investors have to be cognizant of how each asset will perform in both up and down markets. One way to do this is to anticipate future user needs. It's important to be aware of what today's users want, and think about how those demands will evolve. From there, execute based on the anticipated needs.

Our firm is careful to implement property-level improvements that will sustain demand over the long-term. Beyond that (at the risk of sounding repetitive), location really does remain key. Well-located assets will continue to garner strong demand throughout market cycles, contributing to strong value over time.

GlobeSt.com: What else should our readers know about finding inherent value in a property?

Stos: We always take economic and social trends into consideration when looking at acquisition opportunities. It's important to know your investment markets thoroughly and to understand why and how certain property features work in each submarket.

Real estate investments are the most valuable when risks are minimized. As investors, there is always some measured risk, but when that is balanced with a true understanding of local markets and a tenured history of execution, the risk becomes less, and the opportunity for value creation increases.

In a nutshell: focus on what you know, and keep your eye on what's ahead.

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SAN DIEGO—It's important to be aware of what today's users want and to think about how those demands will evolve; from there, execute based on the anticipated needs, Stos Partners principal CJ Stos tells GlobeSt.com. The privately held commercial real estate investment and management firm recently completed three commercial-property transactions in Southern California, including the sale of a multi-tenant industrial asset in Rowland Heights, the acquisition of a single-story office building in Encinitas and the acquisition of a two-story office building in San Dimas.

The company's investment platform centers on recognizing inherent value. Stos is actively acquiring industrial, office, and mixed-use properties in coastal and urban areas of Southern California that are well-located but in need of hands on management to realize full asset value.

We spoke with Stos about how firms identify value in a property and formulate a strategy for enhancing that value in an economical way.

GlobeSt.com: How do firms identify value in a property?

Stos: Smart investors are seeking assets in irreplaceable locations in markets with high barriers to entry. This strategy is integral to our investment thesis; we strictly invest in well-located assets in urban and coastal markets where demand is high. Beyond that, we look for assets that are in need of stabilization, repositioning or redevelopment with attractive upside potential.

Owners like us with strong operational platforms are able to acquire assets well below replacement costs and implement improvements and smart leasing strategies that can drive property value up and sustain that value over time.

GlobeSt.com: How do firms formulate a strategy for enhancing that value in an economical way?

Stos: The best strategy is to always think ahead. We're in a cyclical industry, and investors have to be cognizant of how each asset will perform in both up and down markets. One way to do this is to anticipate future user needs. It's important to be aware of what today's users want, and think about how those demands will evolve. From there, execute based on the anticipated needs.

Our firm is careful to implement property-level improvements that will sustain demand over the long-term. Beyond that (at the risk of sounding repetitive), location really does remain key. Well-located assets will continue to garner strong demand throughout market cycles, contributing to strong value over time.

GlobeSt.com: What else should our readers know about finding inherent value in a property?

Stos: We always take economic and social trends into consideration when looking at acquisition opportunities. It's important to know your investment markets thoroughly and to understand why and how certain property features work in each submarket.

Real estate investments are the most valuable when risks are minimized. As investors, there is always some measured risk, but when that is balanced with a true understanding of local markets and a tenured history of execution, the risk becomes less, and the opportunity for value creation increases.

In a nutshell: focus on what you know, and keep your eye on what's ahead.