National Real Estate Investor recently gave their recommendations for smart property investments for this year. Experts from several research firms came together to compile this list of properties with promise.
- Senior Housing
Much of the population is aging, making senior housing a good investment.
“Senior housing is experiencing upward demand, but with this property type, you can’t increase rent as rapidly as you can with multifamily,” notes Barbara Byrne Denham, a Reis economist.
2. Student Housing
“Student housing operations are generally in line with the long-term trend, and the sector’s defensive attributes have not gone unnoticed by investors,” says Andy McCulloch, managing director and head of real estate analytics at Green Street Advisors.
3. Warehouses
Warehouses have become one of the top smart property investments especially due to new e-commerce tenants.
“Against a backdrop of healthy demand boosted by e-commerce, market rent growth has been stronger than expected,” McCulloch says. “While new supply and obsolescence are always concerns for industrial, the sector’s future growth prospects look better than past performance would suggest.
4. Neighborhood community centers
“Strip center tenants are generally healthier than mall tenants today, especially when putting department stores into the mix,” McCulloch notes. “While retailer bankruptcies are a continued nuisance in the strip sector, the lack of ground-up development points toward a continued improvement in operating fundamentals.”
5. Self-storage
According to Green Street Advisors, price appreciation in the self-storage industry has risen over 16 percent in recent years.
“Storage continues to become more accepted as an institutional asset class, and operating fundamentals have been phenomenal,” says McCulloch. “Higher cap rates, solid NOI [net operating income] growth, and low cap-ex make self-storage a great business.
At RE/MAX Paradise we can help you find smart property investments in the Miami area. Check out some of our commercial properties and contact an agent today for more information.