3 Investment Opportunities You Wont Want to Miss
ENGEL & VÖLKERS ENCINO / SHERMAN OAKS BLOG :: WEDNESDAY, JUNE 1, 2016
Are you looking to make an investment this year? The time is now, 2016 has nothing but great investment opportunities ready for you today. With insight from research firms such as: Situs RERC, Reis Inc., Green Street Advisors and Real Capital Analytics we learn where the value is out. Here are 3 important investment opportunities that deserve some consideration.
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 (student housing is the best performing sector year-to-date in the REIT space),” says McCulloch. However, a “demographic lull in college-aged students and further acceptance of on-line education pose a threat to lower-tier universities,” he adds.
In the first quarter of 2016, the pre-tax yield for student housing properties was 7.6 percent, according to reports from Situs RERC
NEIGHBORHOOD COMMUNITY CENTERS: Neighborhood Community center comes in as the number two best investment opportunities for 2016. "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."
WAREHOUSES: Warehouses come in as number one when it comes to your investments for 2016. Big-box flex warehouse space is one of the healthiest industrial sub-sectors, which has been getting a lift from e-commerce tenants. "Against a backdrop of healthy demand boosted by e-commerce, market rent growth has been stronger than expected," McCulloch told the National Real Estate Investor. "While new supply and obsolescence are always concerns for industrial, the sector's future growth prospects look better than past performance would suggest."
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Source: “Seven Property Types to Invest in This Year,” National Real Estate Investor (May 26, 2016)