Commercial real estate eyed as strong area for investment

With the recent turmoil in the stock market following the election of Donald Trump, many investors throughout the United States, including in Massachusetts, have been analyzing their investment strategies to determine the best routes to take. One area that has garnered increasing attention is commercial real estate — specifically private-equity real estate. This is considered a goal-seeking investment.

Historically, stock markets have been susceptible to huge events, so they are not completely reliable. Likewise, bonds move in the direction that stocks do when the market moves up and down. It is for this reason that bonds are not as attractive today as they were in the past.

The benefit of private-equity real estate is that it remains shielded from the market’s daily swings. Thus, these assets are able to strengthen portfolios due to their low vitality and high returns. Real estate projects that are value added work to create value long term in assets that are underperforming, therefore building on market value and income stream.

Commercial real estate continues to be an area that savvy investors are targeting because of the promise it carries in Massachusetts and elsewhere. However, failure to navigate a commercial real estate transaction properly can cause the deal to end up dying, thus costing time and energy. It can also be frustrating both emotionally and financially. An applied understanding of the law may help individuals to complete their deals in a manner that is in their best interests considering their unique goals and current market conditions.

Source: thestreet.com, “Here’s How to Use Commercial Real Estate in Goal-Based Investing“, David Scherer, Nov. 11, 2016