Real Estate Journal Online

The wealthiest investors in the country are targeting commercial real estate for their high-yield investments, sinking more than 3 times the amount of money into commercial real estate in 2010 as they did in 2009[1]. And they have focus; nearly a third of all deals last year were apartment buildings of some kind, reported Real Capital Analytics yesterday. Dan Fasulo, Real Capital’s managing director, pulled no punches: “Commercial property looks damn attractive versus other asset classes right now,” he stated, observing that commercial property has “inflation protection characteristics, plus it gives you a check every month.” He compared commercial property investments to investments in gold.

Multifamily housing is extremely attractive to high-net-worth investors, explained Robert Knackal, chairman of Massey Knackal Realty Services, because this type of large-scale investment offers “higher returns without the onus of managing a property.” Also, he pointed out, other types of investment options like CDs simply are offering yields that are too low to be attractive. Commercial real estate investing is also relatively straightforward compared to hedge funds and other structured investment products, say experts, making this type of investment particularly appealing to investors who want to keep a close eye on their money.

All the signs point to commercial real estate as the place to invest in 2011. Are you going to “follow the money” in this direction or are you interested in other real estate venues?

Thank you for reading REJournalOnline’s Commercial Real Estate Letter!

Let us know what you think of multifamily housing opportunities in today’s market below.

Also, consider checking out this last-chance offer (ends today) to get involved in commercial real estate deals with virtually no money down and access amazing, attorney-verified real estate retirement planning strategies and forced appreciation on commercial properties by clicking here.

---

[1] http://www.bloomberg.com/news/2011-03-10/wealthy-u-s-individuals-invest-in-commercial-property-in-quest-for-yield.html