Fasten Your Seat Belts: Commercial Real Estate Is Taking a Flight to Quality

A "flight to quality" doesn’t mean jetting off to a tropical resort, it`s a strategy that real estate investors are using right now to gain peace of mind. Seasoned CRE buyers are flocking to quality assets with less market and construction risk. Is it time to reposition your investment holdings?

The commercial real estate market has been so strong the past few years that property appreciation alone has turned otherwise marginal deals into windfalls. A low-risk/high-return market atmosphere has conditioned today’s real estate investors into believing outsized return metrics are the new normal....

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RSK: I see prices leveling off. Especially in older buildings. As he mentions, rehab prices and maintenance has gone up 20% to 25% in just five years.....that eats into ones CAP rate big time.