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National Real Estate Investor
Seven Property Types to Buy in 2016
Elaine Misonzhnik Jan 07, 2016

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Situs RERC recently released its third quarter 2015 report, complete with real estate investors’ “buy” recommendations for various property types. Below we outline which assets got the most votes as good “buys” going forward.

Hotels

Twenty one percent of surveyed investors recommended hotels as a “buy.” Hotels also got a score of 6.5 in terms of investment conditions, on a scale where 1=poor and 10=excellent.

Power Centers

Twenty three percent of surveyed investors said this may be a good time to buy power centers. The property type got a 5.8 on the investment conditions scale.

Student Housing

Student housing continues to look like an attractive opportunity to 25 percent of surveyed investors. It received a score of 6.1 on the investment conditions scale in the third quarter of 2015.

CBD Office

Office buildings in Central Building Districts (CBDs) were rated as a “buy” by 29 percent of surveyed investors. They got an investment conditions score of 6.2.

Neighborhood/Community Centers

Forty six percent of surveyed investors recommended buying neighborhood and community shopping centers. In the third quarter of 2015, the property type got an investment conditions rating of 6.3.

Industrial Real Estate’s Hot Run

Industrial real estate emerged as investors’ most preferred commercial asset class in 2018, as e-commerce growth continued to drive demand for warehouse and distribution properties across the country. In the second quarter, markets ranging from California’s Inland Empire to Columbus, Ohio made the list of places with the strongest industrial space absorption, according to real estate services firm Transwestern.

In fact, the need for space has been so great, many older properties in urban infill markets are being reconsidered for industrial conversions. However, cap rates on industrial assets moved down so far, there has been some concern the sector may be becoming over-heated. Though it doesn’t appear it’s time to worry yet, as industrial brokers believe the sector can still run on high for another two or three years.

 

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