Three Minute Takeaway - 1/3/2026

Every day, I strive to get better and learn something new. As I pursue a career in the commercial real estate industry, it is important I am keeping updated and constantly learning. My daily goals start by quickly going over the 10-point from the WSJ.

Then they are to read one real estate focused article and one broader economy article. I will write about each article – what I learned, my opinion or a takeaway.

Next, I will shift away from finance, building off of “three-minute takeaways.” I will summarize one podcast where I will learn something that improves my life. Whether its communication, mindset, etc.

Lastly, I will master one random question from a finance Interview Guide.

Real Estate

            After reading the article titled: The Condo Market Hasn’t Been This Bad in Over a Decade, by the WSJ, I took away a few things. First, the bigger picture outlook is that condos have had this much of an annual decline since 2012. Which is scary to think about, but I don’t think it tells the whole story. One reason for this slowdown is simply demand. Now that remote work is more normalized, the condo market in downtown markets isn’t as attractive as it used to. Another reason the article notes is the increased HOA fees.

            Now something to note is that much of the condo supply in the US are second homes. And as inflationary pressures rise, the affordability of owning a second home goes down. On the contrary, many of the consumers who own second homes aren’t urging to sell the homes and readjust the imbalanced supply and demand curve.

            The market that is being most heavily impacted is the Florida market, according to the article. And this is because of a combination between demand and HOA/insurance costs.

            I think that with time this will adjust, especially if the economy trends positive in 2026. And that condo supply could also change to target first home consumers in more suburb like submarkets.

Source: https://www.wsj.com/economy/housing/the-condo-market-hasnt-been-this-bad-in-over-a-decade-9f3e7256?mod=hp_lead_pos2

Three Minute Takeaway

AI Investing: Where the Trillion-Dollar "Smart Money" is Moving

In this episode of the Peter H. Diamandis podcast, "AI Investor Panel: Where Smart Money Is Actually Going in AI | EP 219," we get a front-row seat to a conversation that is quite literally rewriting the rules of the global economy. Peter sits down with a powerhouse panel—Anjen Mida from Andreessen Horowitz (A16Z), Bonnie Chan of the Hong Kong Stock Exchange, and David Blondon of Link Exponential Ventures. They meet to discuss how we are going to fund a revolution that is moving faster than anything we’ve ever seen.

The Numbers are Mind-Boggling

If you think the AI hype is just talk, the numbers will wake you up. Currently, in the United States alone, about $1 billion is being deployed into AI every single day. By 2030, that number is expected to hit $3 billion daily. Anjen Mida points out that at A16Z, every fund, whether it was originally for healthcare or infrastructure, is now effectively an AI fund. We are witnessing a "Jevons Paradox" in real-time: the more efficient our algorithms and infrastructure become, the more compute we seem to need. It’s an insatiable explosion of use cases that the traditional venture capital stack isn't even fully prepared to handle.

The "Hard Wall" of Energy

While we often focus on the chips (like Nvidia’s latest tech), the panel highlighted a looming crisis that could stall the whole machine: energy. We are running out of "electrons" to power these massive data centers. Anjen noted that the compute supply chain is being choked by energy permitting and power density issues in legacy data centers. We are entering a "frenzy for energy contracts" where providers are outbidding each other just to keep the lights on.

Bonnie Chan added a fascinating perspective from Asia, noting that China's advancements in green energy and storage are becoming a massive advantage. Because China is a dominant manufacturing hub, they are finding ways to embed AI directly into production processes and data-intensive sectors like drug discovery, which is accelerating the pace of innovation at a staggering rate.

The 100% Success Rate?

Perhaps the most shocking part of the conversation came from David Blondon. He noted that the number of startups coming out of labs at MIT and Harvard has quadrupled, and for his firm, the success rate for these teams has been near 100% so far. Why? Because the use cases are so abundant and the talent pool is so high-quality that they are thriving every single time.

We are seeing a new class of "billionaires under 30" who have barely had their driver’s licenses for a decade but are sitting on massive liquidity because their companies are hitting $10 billion valuations in just two years.

The Risk of Leaving the Public Behind

It wasn't all sunshine and high valuations, though. The panel got real about the "civil blowback" that could occur. Right now, the vast majority of this wealth is locked up in private capital and family offices. The general public isn't participating in this wealth creation, and as AI begins to "tokenize" and vaporize certain job sectors, like IT services in India, we could see significant social unrest. The challenge for the next decade isn't just funding the tech; it’s finding a way for sovereign wealth funds and pension funds to get a piece of the pie so that everyone benefits, not just a tiny fraction of the population.

--------------------------------------------------------------------------------

Easy Takeaway:

The AI revolution is no longer just about software; it’s a massive infrastructure and energy play. While software applications are thriving with near-unprecedented success rates, the entire industry is racing toward a "hard wall" of electricity supply that will determine the next winners and losers.

Favorite Quote:

"There's this new class of person roaming around that barely has a driver's license but has a billion dollars in liquidity... used to be a billionaire being a billionaire was a big deal, now we're just going to wait for the trillionaires to start." — David Blondon

Relevant Question:

How can we bridge the gap between private AI wealth creation and public benefit before the "short-term transition pains" of job displacement lead to civil unrest?

Source: Diamandis, P. H. (Host). AI Investor Panel: Where Smart Money Is Actually Going in AI | EP 219. YouTube.

--------------------------------------------------------------------------------

Random CRE Question

Is a multifamily property that is 100% occupied optimal?

A multifamily property that is 100% occupied sounds appealing, but is not optimal. The ideal occupancy rate for multifamily is closer to 95%. This is because if a building is fully occupied, it could actually be missing out on rental income if the units aren’t priced towards market demand. You could be “leaving money on the table,” by not increasing the rents.

Something to consider is scale. If the multifamily property only has four units, for example, then you would want 100% occupancy.

Something to consider is scale. If the multifamily property only has four units, for example, then you would want 100% occupancy.