The mention of commercial real estate evokes images of offices and strip malls, but in reality, it encompasses a far wider array of real estate sectors.
Office space makes up around 20% of all commercial real estate, and it’s experiencing a sharp decline in demand since pandemic lockdowns.
But not all commercial real estate sectors are struggling. Some forms of CRE that you can invest in are experiencing a steep increase in rent growth with minuscule vacancy rates. For example, the logistics space witnessed an impressive 10.1% year-over-year increase in rent, while the industrial sector’s vacancy rate was 4.7%. In comparison, almost a fifth of San Francisco offices are empty.
Demand for often-overlooked research and development (R&D) facilities is also exploding. Over the last 10 years, their occupancy rate almost tripled (288%) while the total square footage of R&D/flex facilities increased from 44 million square feet to 171 million.
The CRE Income Fund has been paying close attention to market trends and is placing its investments accordingly. It has primarily been focused on the e-commerce section of the logistics space, reshoring and R&D facilities.
A team of seasoned real estate professionals has structured the fund to yield 10% annually in dividends alone. To achieve that, the fund targets metro areas with the highest cap rates, potential for appreciation, population growth, inward migration and political support for business and development.
Apart from current income, the fund also provides an opportunity to realize substantial capital gains every time a property that has appreciated in value is sold. CRE Income Fund’s returns are a great motivator for accredited investors to invest in it, but there are others. Investors in the fund bear no liability beyond their initial investment, which isn’t the case with syndication and owning rentals on your own.
Many would-be investors are concerned about the liquidity of their stake in the fund, so CRE Income provides an emergency exit. If you meet a few requirements, you’re able to sell your shares when you want.
All accredited investors are welcome to take a minute and register on the company’s webpage. Doing so unlocks additional information about the fund.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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