When it comes to commercial property investment few are more experienced and successful than Sir Bob Jones.
So what his secret?
Well to begin, he has actually written two books on the topic: ‘Jones on Property’ (1977) and ‘My Property World’ (2005).
While Sir Bob’s speciality is commercial property (particularly office buildings) even within that narrow circle of competence the environment is one that is always shifting, and previous approaches can be rendered archaic.
This is inherent to any kind of investing as an activity, as it is a practice of trying to predict the uncertain future. Indeed such novelty is true now more so than ever in living memory. The field of commercial property is reacting to the changes of physical distancing and remote work coming into greater prominence.
Nonetheless, for all the uncertainty, there are many timeless gems still to be found amongst Sir Bob’s ways, including general principles of interest to any kind of investor. Indeed in the beginning of ‘My Property World’ Sir Bob even says something to this effect considering ‘Jones on Property’ outdated in any instructional sense, but thinking that the underlying spirit still retains some value. Neither is ‘My Property World’ in his words a ‘how-to’ book, but it contains many anecdotes, observations, and principles that have served Sir Bob well.
If I had to define Sir Bob’s property investment approach I would describe it as ‘human-centric’. He doesn’t make the mistake of forgetting that buildings are places people have to inhabit instead of the reverse. Modern designers and architects seem to believe things like people are just a liquid with which to fill spaces. No. Rubbish. Hang the lot. A building should always be practical and pleasant for human beings to be in.
In specific terms, criteria such as a building having as much natural light as possible, access to air, and high ceilings for a sense of space etc. are all important considerations.
Modern offices, in an attempt to save space, stuff employees together like battery-hens, which Jones decries as an inhumane and vastly short-sighted approach.
Other criteria include the building being a corner site or free-standing tower, with no corner columns for optimal retail space and visibility of rounded windows, and a high lift-to-floor-area ratio.
There is, of course, much more that goes into it than all that, including so called ‘intangible’ factors, but the bottom line is always quality.
If you would like a deeper dive into Sir Bob’s approach – see my notes on ‘My Property World’.