Investing outside the Traditional-CRE Box
Stuart Gelb
CEO at The Liquidity Source | More Than Financing - We Solve Commercial Real Estate Challenges
Like most investment opportunities, commercial real estate cycles through a series of ebbs and flows. Today, many experts are asking if the CRE market is heading toward a correction. Have we ridden the bubble to its peak? According to Collier’s latest market report, “Even the most bullish market commentators are wondering how much fuel is left in the engine of recovery for Manhattan’s real estate market.”
There’s certainly no shortage of Manhattan office space available. In addition to existing properties, there’s 33.31 MSF of new and renovated office inventory in the pipeline according to the Collier report. This doesn’t even include the planned construction and renovation projects throughout NY’s other boroughs. Landlords find themselves in an increasingly competitive landscape, offering lease concessions and retention packages to close the deal.
Investing in commercial real estate is about the long game. You buy today with the intent of an ongoing income and a future healthy payoff. However, if you’re looking to shore up your short-term gains, it may be time to look to add some non-traditional investment properties to your portfolio.
Have you capitalized on the non-traditional CRE market? Please share what has worked for you.