What Commercial Real Estate Would You 'Overpay' for Today?
September 2021
Video Highlights
The current investment landscape is highly dynamic and aggressive bid activity has broadly pushed cap rates for high-performing assets to low levels.
Unlike other investment options, CRE investors can leverage their knowledge to outperform the market even in today’s environment. Investors who think differently and are willing to find creative solutions have an opportunity to be successful.
Investors should consider these factors when deciding whether to “overpay” for assets:
Information: Understand the asset’s local market/submarket as well as the economic, demographic, regulatory and supply/demand factors that influence its outlook
Insight: Finding creative ways to look beyond what a property is today and instead focus on what the asset can be tomorrow
Perspective: Keep long-term trends in context to position that piece of real estate for success down the line