The right time for REITs and CRE Investments

August 7, 2014

There has never been a better or more accessible time to invest in commercial real estate. With a steady market, low interest rates, more means of entry, and collateral that builds equity over time, the market beckons to savvy investors.

The Commercial Property Executive says patient investors looking for consistently solid returns should consider CRE for two reasons, “continuous rental revenues derived from a successfully managed real estate asset combined with the almost inevitable appreciation of the property itself—tough to beat in any other area of investing.”

Research Your Investment

Like any investment, the best chance for success comes with research and industry expertise. If you are considering investing in commercial real estate be sure you know the broker or sponsor. Understanding their background, experience, investment strategy and goals is imperative to mutual success. If the investment is local, you should have a firm grasp on the forecast of that community as a whole.

The Intelica Asset Management Team specializes in evaluating a real estate investments—working with investors to achieve investment goals, minimize risk and increase profitability. If you are considering a commercial real estate investment, let’s talk about your vision.

Choose an Avenue of Investment

Based on your preferred level of involvement, risk and resources, there are many options for commercial real estate investments.

  1. REITS (public or private)- REITs provide professionally managed investment opportunities, with long-term returns that compare to those of private equity funds. Public REITs offer investors the highest liquidity.

  2. Limited partnership– This offers more flexibility in the level of involvement of the investment, but still affords opportunity for high returns.

  3. Crowdfunding–  This new and trending form of CRE investment allows people more affordable means of entry and the ability to support local passion projects.

According to CNBC, REITS are out permforming the broader U.S. stock market thanks to high demand in multiple sectors and interest rates: “Low interest rates are a positive for REITs because they really offer investors an attractive yield alternative relative to Treasurys or fixed income and you have a growth characteristic to that dividend yield that will go up and increase versus kind of a fixed return over a period of time.”

To learn more about the CRE investment market, talk to our team. We keep a constant pulse on the industry and are always looking for new partners in St. Louis and the Midwest region.