Putting your money in bricks and mortar is one of the oldest and safest ways to protect and grow your wealth. But while residential property may seem like the most obvious and accessible choice, investing in commercial real estate can open up a realm of new possibilities. Here are four great reasons to diversify your holdings with commercial property.
1. The potential for higher returns
There’s a reason why some of the world’s biggest institutions invest heavily in commercial real estate: The potential return is huge. Commercial properties are big business because they are far more expensive to rent or buy than private property, and that means they offer higher income potential to investors.
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You can earn returns in two ways: ongoing cash distributions and/or a portion of the property’s final share price. The possibility of higher returns also means that you may be able to grow your portfolio faster if you reinvest the money you earn in new projects or properties.
What is the potential? Here’s one example: Since launching in 2014, the CrowdStreet Marketplace has closed 467 commercial real estate offerings. To date, 44 of those offerings have been fully realized – with an IRR of 17.7%.
Click Here to gain full access to the CrowdStreet platform!
2. An investing platform that offers great ‘deal flow’ and more control
There are so many ways to build a commercial real estate portfolio, it can be overwhelming. Where should you focus and what type of property should you target?
Investing through a commercial real estate platform gives you access to an ongoing source of professionally vetted investments (“deal flow”) and expert advice. What’s more, you gain control and choice, including:
- More active involvement in your investments than simply investing in a trust.
- Greater choice of single or multiple projects options -- rather than a pre-packaged portfolio.
- Access to a diverse range of geographical locations and commercial property markets.
A trusted platform with access to market insights, such as CrowdStreet, can help you get a sense of where the opportunities lie. This is particularly important right now after the disruption of the Covid-19 pandemic, which has thrown off a lot of trends and propelled others forward.
For example, while retail property took a hit, industrial real estate experienced a boom, largely due to the rise in online shopping during the lockdowns. An October 2020 report from Green Street Advisors predicted that 30% of all retail sales will take place online by 2030.This demand will fuel the need for an extra 1 billion square feet of industrial real estate in the U.S. by 2025, according to real estate advisors JLL.
Review detailed information about its current deal flow with no obligation here.
3. Extensive, expert analysis of investing opportunities
CrowdStreet is the leading commercial real estate investing platform in the U.S. With a team operating in every region of the country, CrowdStreet experts are constantly looking for the best sponsors with institutional-quality deals.
At CrowdStreet, every potential deal goes through extensive, rigorous review. CrowdStreet analysts evaluate each sponsor, its team and track record, digging into the business plan to ensure it’s the right fit. This review is conducted thoroughly but efficiently to deliver a steady and reliable deal flow for accredited investors.
Note: Accreditation means your net worth exceeds $1 million, or your annual income has exceeded $200,000 ($300,000 for joint income) for the last two years, and you expect to earn this amount or more in the current year as well.
Are you accredited? See the CrowdStreet CRE deal flow here.
4. A free special report on the hottest commercial markets in 2021
CrowdStreet’s latest report gives you expert insight into the top 20 markets for commercial real estate investment in for 2021. And for a limited time, Kiplinger readers have free access to this proprietary information.
You’ll see which cities across the country are poised to enter a new cycle of growth and you’ll learn why. The report also covers top markets for:
- Multifamily acquisition and development
- Build-to-rent properties
- Industrial properties
- Offices
- Hospitality
- Retail
- Life sciences
- Manufactured housing
Download the report for free and no obligation here.
To determine the rankings, CrowdStreet’s team of investing analysts leveraged internal expertise and analysis, external data, and interviews with real estate industry professionals. Ultimately, they assessed markets based on 25 macroeconomic and microeconomic attributes.
Whether you’re a seasoned real estate expert or completely new to commercial real estate investing, CrowdStreet’s insights make it easy to find the right approach for you.
Get your free special report on the hottest commercial markets in 2021.
You’ll also gain full access to the CrowdStreet platform! Review detailed information about its current deal flow with no obligation.
This content was provided by CrowdStreet. Kiplinger is not affiliated with and does not endorse the company or products mentioned above.
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