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The Truth About Investing in “The” Commercial Real Estate Market
There’s No Such Thing
The commercial real estate market has been a topic of discussion for investors over the past few years, especially in the wake of the COVID-19 pandemic. While there have certainly been challenges and shifts in the market, the idea of a “crash” in commercial real estate is not entirely accurate.
In the interest of full disclosure, I work in commercial real estate as an investor, consultant, and partner in a Phoenix-based firm that develops luxury townhomes for rent. Before commercial real estate, I started and managed small businesses. Before that, I worked as a licensed financial advisor for over a decade.
Further, my degree in economics also supports the fact that I have no idea what the future holds. I have no way to predict the results of my investments. My partners and I focus on the fundamentals and financial projections, yields, and internal rates of return for us and our investors.
In other words, we don’t let the headlines distract us from finding value in local commercial real estate. It’s always been that way because if you know your business, you know how to make a profit in virtually any market.
Of course, Black Swans can hand our butts to even the best of us. But being run over…
