- January 31, 2017
- Posts from Friends
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Reasons to Invest in CRE
The commercial real estate industry, or CRE industry, can provide lucrative investment options for numerous investors. There are several different property types, which creates a diverse selection of exciting investment opportunities. There are several reasons to invest in commercial real estate…almost too many to count! Our friends at Simon CRE recently published a blog post detailing three of the many reasons to invest in commercial real estate. Whether you’re interested in investing or just learning what opportunities could be available to you, we encourage you to read the excerpt below. Then, click the green button at the bottom of the page to view the full article.#CRE 101: 3 Reasons to Invest from Simon CRE Click To Tweet
Commercial real estate has long proven to be one of the most stable and common types of investments in history, and the perpetual ebb and flow of supply and demand gives real estate inherent value in the world of investments. It has provided millions of investors the opportunity to generate positive returns, create a stable cash flow, and diversify their investment portfolios.
And under the new Trump administration, the belief is that those opportunities will remain aplenty. Let’s take a look at three of the most significant factors drawing people to invest, and how the new presidency and policies may impact those factors.
Income Potential and Cash Flow
Historically, returns from real estate investments are fairly attractive compared to alternative investment types such as stocks, bonds, or other commodities. Finding the right property may produce a return of somewhere between six and 12%, with the National Council of Real Estate Investment Fiduciaries (NCREIF) Index reporting an annual return of 12.7% in 2015.
That upward trend, in addition to Trump policies in regards to trading, may lead to higher inflation and subsequently higher cap rates on commercial property. Inflation, mixed with higher interest rates could help spur healthy capital gains on real estate investments…