As more and more Floridians enter retirement, they’re looking for ways to diversify their portfolios, while adding to their total return. Although conventional stock and bond portfolios are still popular, more and more investors are looking to real estate for added value. Although REITs, or publicly traded companies that buy real estate and pass on the majority of the profits to investors, have been popular for a while, many investors are beginning to invest in commercial real estate. Whether it’s a mall or office building, commercial real estate is attracting the attention of many institutional investment portfolios.
Since 2009 the amount of capital in commercial property has doubled, according to research compiled by Real Estate Research in Des Moines. For investors seeking higher yield commercial real estate offers a refreshing alternative to other fixed income products. On average, the asset returned 8.5 percent in combined appreciation and income over the last decade, compared to 7.8 percent for the S&P 500. Among large institutional investors, JP Morgan, Principal Financial Group and UBS, all offer commercial real estate as an investment option.
Growing private investment in commercial real estate will continue to prop up real estate markets in large cities like Miami. With hundreds of condos, malls and office buildings to chose from, Miami commercial real estate offers a great opportunity for long-term investors seeking stable growth. If you’re interested in commercial real estate check out our site and some of the luxury buildings in Miami!