ORLANDO—What are the biggest challenges for commercial real estate investors in 2016? What are the best bets?
GlobeSt.com caught up with Marty Caverly, chief investment officer at Los Angeles-based Resource Real Estate, a national firm specializing in opportunistic and value-added investing in and financing of commercial real estate, to get his answer to these strategic questions. You can still read part one of this interview: Expert: 2016 CRE Investment Should Beat 2015.
GlobeSt.com: What are the biggest challenges for commercial real estate investors in 2016?
Caverly: The biggest challenge for investors in 2016 will be finding a suitable product that meets yield and return expectations without taking too much risk. Supply is certainly going to start being an underwriting issue in some markets as well. Rate uncertainty may create some short-term wobbles, but, over the longer term, historically higher rates have been good for real estate.
GlobeSt.com: What are the best investment bets for 2016? What makes those good bets?
Caverly: Our best investment bet for 2016 is what we call creative office space. There is an evolutionary change occurring in how people use office space, and those who can identify it and invest in it early will enjoy higher risk-adjusted returns.
GlobeSt.com: What potential X factors are you especially concerned about as it relates to commercial real estate investment?
Caverly: We're keeping an eye on any change in tax laws that could be bad. Many feel that tax laws changes in 1986 worsened the 1989-1992 real estate decline.
ORLANDO—What are the biggest challenges for commercial real estate investors in 2016? What are the best bets?
GlobeSt.com caught up with Marty Caverly, chief investment officer at Los Angeles-based Resource Real Estate, a national firm specializing in opportunistic and value-added investing in and financing of commercial real estate, to get his answer to these strategic questions. You can still read part one of this interview: Expert: 2016 CRE Investment Should Beat 2015.
GlobeSt.com: What are the biggest challenges for commercial real estate investors in 2016?
Caverly: The biggest challenge for investors in 2016 will be finding a suitable product that meets yield and return expectations without taking too much risk. Supply is certainly going to start being an underwriting issue in some markets as well. Rate uncertainty may create some short-term wobbles, but, over the longer term, historically higher rates have been good for real estate.
GlobeSt.com: What are the best investment bets for 2016? What makes those good bets?
Caverly: Our best investment bet for 2016 is what we call creative office space. There is an evolutionary change occurring in how people use office space, and those who can identify it and invest in it early will enjoy higher risk-adjusted returns.
GlobeSt.com: What potential X factors are you especially concerned about as it relates to commercial real estate investment?
Caverly: We're keeping an eye on any change in tax laws that could be bad. Many feel that tax laws changes in 1986 worsened the 1989-1992 real estate decline.
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