When the Market Shifts, So Should You

Originally published on Inc.com by Gideon Pfeffer Smart leaders know when it's time to expand—and how to do it without losing focus. Markets don’t stay still. In real estate, we’ve seen interest rates rise, cap rates expand, and lending conditions tighten. Even the most disciplined operators are finding it harder to generate the returns that once came easily.

Markets don’t stay still. In real estate, we’ve seen interest rates rise, cap rates expand, and lending conditions tighten. Even the most disciplined operators are finding it harder to generate the returns that once came easily. Moments like these test more than resilience. They call for reinvention. The question isn’t if you’ll adapt—it’s how.

Expand beyond the core

The strongest leaders don’t abandon their foundation. They look for adjacent opportunities—sectors that build on what they already do well.

• The Empire State Building opened in 1931 during the Great Depression, when demand for office space was weak. Its owners leaned into a different strength—its height—by opening observation decks. Those decks became so profitable that they eventually out-earned the office leases.
  

• Starbucks offers a modern version. Built on cafés, it realized growth couldn’t come from storefronts alone. By expanding into packaged goods—beans, bottled drinks, and K-cups—it transformed brand equity into a billion-dollar grocery business.
  

Both cases prove the point: Adjacent growth can become just as valuable as the core.

Our next chapter

At GSH, our foundation is multifamily real estate. Over the past decade, we’ve managed more than $1 billion in assets across thousands of units. Multifamily remains resilient—but today’s market calls for more.

That’s why we’re moving into energy infrastructure—specifically battery storage and EV charging. These assets share the same fundamentals as real estate: They are capital-intensive, operations-driven, and long-term. The better they’re managed, the more value they create.

We started by adding energy upgrades at existing properties. Now we’re launching a dedicated platform. It’s not about chasing a hot sector—it’s about applying discipline where it fits.

A framework for leaders

For companies considering new directions, a few principles can help:

• Start with strengths. What does your business do exceptionally well? Where else can those skills apply?
  

• Check the fundamentals. Look for sectors with durable demand drivers, not just temporary buzz.
  

• Test first. Pilot on a small scale, learn, then expand.
  

• Stay aligned. New ventures should extend your mission, not dilute it.
  

• Think long-term. Prioritize opportunities that will add value through the next cycle—not just the next quarter.
  

The bigger picture

The Empire State Building didn’t stop being an office tower when it opened its decks—it became more. Starbucks didn’t stop serving lattes when it entered grocery stores—it built a second growth engine.

The same principle applies across industries: Resilience matters, but resilience without reinvention is standing still. Leaders who expand their playbooks thoughtfully will be the ones to thrive.

Because the future of business isn’t either/or.

It’s both.