Good morning!

Going into the new year, I’m grateful for the way this team shows up - focused, thoughtful, and accountable. We’ll use AI as a tool, not a crutch, and keep doing the work that actually matters.

— Lucas Robinson, Founder & CEO at BudgetMailboxes.com

🎯 This Week’s Strategy:

• Alternative Revenue Generation Models

🤝 Boardroom Brief:

• High-Profile Fifth Avenue Deal Signals Shift in Commercial Real Estate Strategy
  

Strategy

🎯 Alternative Revenue Generation Models

Relying solely on rent increases to grow revenue is no longer sustainable or tenant-friendly. Today’s most resilient property management firms diversify income by implementing Alternative Revenue Generation Models that increase profitability while enhancing tenant value and asset performance.

When executed correctly, these models create new income streams without significant capital investment or tenant disruption.

How Property Managers Can Implement Alternative Revenue Generation Models

1. Introduce Value-Added Tenant Services

Tenants are increasingly willing to pay for convenience and premium experiences. Offering optional, value-driven services creates recurring revenue while improving satisfaction.

Action Steps:

• Offer paid amenities such as reserved parking, premium storage, or furnished unit upgrades.

• Introduce concierge-style services (package handling, cleaning coordination, move-in/move-out assistance).

• Provide bundled service packages that include utilities, internet, or smart home features.

2. Monetize Technology & Smart Building Features

Technology investments can do more than reduce costs. They can also generate revenue when positioned as premium upgrades.

Action Steps:

• Offer smart lock access, smart thermostats, or enhanced security systems as add-on features.

• Charge convenience fees for online rent payments, expedited maintenance requests, or after-hours support.

• Partner with proptech providers to share revenue on tenant-facing digital services.

3. Leverage Partnerships & Vendor Programs

Strategic partnerships allow property managers to generate income without increasing operational burden.

Action Steps:

• Partner with internet, cable, or energy providers for bulk service agreements with revenue sharing.

• Establish preferred vendor programs for maintenance, cleaning, or renovations with referral incentives.

• Collaborate with local businesses to offer tenant discounts in exchange for marketing or placement fees.

4. Optimize Space Utilization

Underutilized space represents untapped revenue. Reimagining how space is used can unlock new income opportunities.

Action Steps:

• Convert unused common areas into rentable storage, coworking spaces, or meeting rooms.

• Monetize rooftops or exterior spaces through solar leasing, cell towers, or advertising placements.

• Rent short-term spaces for events, pop-ups, or seasonal vendors where zoning allows.

5. Implement Flexible Leasing & Pricing Strategies

Flexibility can be a powerful revenue driver when aligned with market demand.

Action Steps:

• Offer short-term or furnished leases at premium rates.

• Implement dynamic pricing based on demand, seasonality, or unit features.

• Introduce lease add-ons such as pet rent, flexible payment schedules, or early access options.

How to Implement Alternative Revenue Models Successfully

• Start with Tenant Value: Ensure new revenue streams enhance convenience or experience rather than feeling punitive.

• Pilot Before Scaling: Test new offerings at select properties to measure demand and operational impact.

• Ensure Transparency: Clearly communicate pricing and optional services to maintain trust.

• Track Performance: Monitor adoption rates, revenue impact, and tenant feedback to refine offerings.
  
  

Investors see ANOTHER return on Masterworks (!!!)

That’s 3 sales this quarter. 26 sales total. 

And the performance?

14.6%, 17.6%, and 17.8% → The three most representative annualized net returns.
(See all 26 at Masterworks.com)

Masterworks is the biggest platform for investing in an asset class that hasn’t moved in lockstep with the S&P 500 since ‘95.

In fact, the market segment they target outpaced the S&P overall in that time frame.*

Not private equity or real estate… It’s contemporary and post war art. Crazy, right? 

Masterworks investors are typically high net worth, but the point is that you don’t need to be a capital-B BILLIONAIRE to invest in high-caliber art anymore.

Banksy. Basquiat. Picasso and more. 

80+ of the world’s most attractive artists have been featured.

• 511+ artworks offered

• $67.5mm paid out as of December 2025

• $2.3mm+ average offering size

Looking to update your investment portfolio before 2026?

[Click here to skip the waitlist]

_{*Masterworks data. Investing involves risk. Past performance not indicative of future returns. Reg A disclosures at masterworks.com/cd}

Boardroom Brief

High-Profile Fifth Avenue Deal Signals Shift in Commercial Real Estate Strategy

Luxury group Kering’s decision to sell a 60% stake in its Fifth Avenue New York property to private equity firm Ardian, valuing the asset at $900 million - highlights a broader trend of owners unlocking capital from prime real estate while retaining operational control. By forming a joint venture and keeping a 40% stake, Kering preserves access to a flagship retail location while improving balance-sheet flexibility amid softer luxury demand. For property managers, this transaction underscores growing interest in partial-ownership structures, sale-leaseback-style strategies, and institutional partnerships as tools to manage debt, optimize portfolios, and maintain long-term tenancy in premium assets even as valuations adjust from recent peaks.

Game

🎉 Fun Finale: Play & Poll

Last Time the Market Was This Expensive, Investors Waited 14 Years to Break Even

In 1999, the S&P 500 peaked. Then it took 14 years to gradually recover by 2013.

Today? Goldman Sachs sounds crazy forecasting 3% returns for 2024 to 2034.

But we’re currently seeing the highest price for the S&P 500 compared to earnings since the dot-com boom.

So, maybe that’s why they’re not alone; Vanguard projects about 5%.

In fact, now just about everything seems priced near all time highs. Equities, gold, crypto, etc.

But billionaires have long diversified a slice of their portfolios with one asset class that is poised to rebound.

It’s post war and contemporary art.

Sounds crazy, but over 70,000 investors have followed suit since 2019—with Masterworks.

You can invest in shares of artworks featuring Banksy, Basquiat, Picasso, and more.

24 exits later, results speak for themselves: net annualized returns like 14.6%, 17.6%, and 17.8%.*

My subscribers can skip the waitlist.

Skip waitlist

_{*Investing involves risk. Past performance is not indicative of future returns. Important Reg A disclosures: masterworks.com/cd.}