US commercial real estate investing opportunities favored core property sectors for decades. But recent market forces and new leadership could knock down long-established pillars.
Traditionally, commercial real estate owners and investors built portfolios of properties by selecting from a wide array of high-quality assets defined within four core property types: office, industrial, retail and apartment. A diversified portfolio of these core assets provided consistent income from rental growth, sustained value appreciation and minimal variability in performance.1 This approach was generally enough to meet investor objectives and even outperform other financial assets like equities or treasuries, when adjusting for risk.2
SEE ALSO: Contrarian Commercial Real Estate Investors Can’t Get Enough of the Uncertainty
Not anymore. The emergence of alternative property sectors has begun to…
