With talk in the news of a recession, today’s investors may be starting to reexamine their investment strategies. An inverted yield curve, volatile stock market fluctuations, and current trade wars may be causing some investors to take a healthy pause in order to reevaluate where and how they are investing.

Many of these investors might be thinking that now may be the time to diversify into other investments, such as commercial real estate.

Commercial real estate has historically been a powerful and relatively stable investment vehicle for those seeking to preserve their wealth and grow their portfolios. Typically, institutional investors invested in commercial real estate. However, that has changed with the introduction of alternative investment vehicles that have allowed the average investor to participate in real estate at many levels.

Here are the reasons one may consider investing in real estate:

The Increase In Demand For Office Space

Today’s corporate giants are growing larger.

Investors need look no further than the current Fortune 500 list to discover that America’s 500 largest corporations garnered a record $13.7 trillion in revenues—equating to more than two-thirds of the entire US economy.

As of mid-year 2019, Amazon’s revenue rose 20% year-over-year, while major players such as Google and Apple have hit tremendous revenue milestones and announced major plans for office expansions.

As these powerhouse companies continue to expand, their demand for commercial real estate to house their growing teams of talent will grow. These companies are seeking walkable office locations surrounded by a wide variety of retail, entertainment and transportation options. They are looking for space that incorporates top amenities demanded by today’s workforce such as indoor/outdoor community space, fitness and wellness centers equipped with on-site fitness classes and conserige services, among many other features.

Investors seeking to invest in real estate securities should evaluate the property owners with whom they choose to invest to ensure that the assets under ownership are well-positioned to leverage America’s corporate growth.

Cash Flow

First « 1 2 3 » Next