What property type in Commercial Real Estate is the best?
With Commercial Real estate being a growing industry, what type of commercial real estate is the best as of now and will team in the best in the future?
[{"id": "i0mbbpz", "text": "NNN Arby\u2019s", "replies": [{"id": "i0mcubp", "text": "Sir, this is a wendy's", "replies": [], "depth": 2}, {"id": "i0n0lpf", "text": "[NNN O\u2019Reilly\u2019s](https://businessdirectory.yourobserver.com/article/auto-parts-store-in-small-rural-town-sells-for-dollar3-million) $3 mil for a 5 cap in a rural town of 25,000.", "replies": [], "depth": 2}, {"id": "i0na99d", "text": "I'm so hungry I could eat at Arby's...", "replies": [], "depth": 2}], "depth": 1}, {"id": "i0mcj4f", "text": "The better questions are (in my opinion), \nWho is investing?\nHow much money?\nWhat's the risk tolerance? \n\nHelp me there and I'll give some ideas.", "replies": [{"id": "i0meb1i", "text": "Money- 10 million \nInvestors- private and public corporations \nRisk- core", "replies": [{"id": "i0mex76", "text": "Formatting makes it confusing. Thought you had 10 million investors.", "replies": [{"id": "i0mfjhc", "text": "My bad", "replies": [], "depth": 4}], "depth": 3}, {"id": "i0onn8m", "text": "I\u2019d want to know within core what type of cash on cash are they looking for? There are further subsets of risk - NNN single tenant and new multifamily are going to see a 2-3% CoC and be extremely low risk, whereas you could go grocery anchored retail for a bit higher risk but 4-5% CoC.\n\nWhat\u2019s your intent from a property management perspective? Farm it out or in house?", "replies": [], "depth": 3}], "depth": 2}, {"id": "i0n00cm", "text": "Core \n\n* NNN single credit tenant QSR \n* Suburban Grocery anchored retail \n* Med office with solid emergency, surgery, or MRI anchor \n* Sunbelt suburban MF in +1m pop markets \\\\\n* Suburban dist and warehouse industrial\n\nThe intense capital requirements for the Med office may push this out of Core, however.\n\nOne idea for industrial is to draft on Amazon Air airports with overage warehouse space. Not exactly core but out of the box.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i0mczzj", "text": "I guess Industrial properties or apartments? Does anyone see hope in strip malls and single unit retail spaces?", "replies": [{"id": "i0medfc", "text": "Sure. If you like big risk. Big returns. Best for massive institutions controlled by a single entity/person.", "replies": [], "depth": 2}, {"id": "i0mfv7b", "text": "EVERY strip mall in my neighborhood has a for sale/lease sign in it. Been like this for a few years now.", "replies": [{"id": "i0mxj6c", "text": "I love strip malls. Where are you located?", "replies": [], "depth": 3}], "depth": 2}, {"id": "i0mgha7", "text": "Grocery anchor stop centers were still being financed during Covid. \nNo grocery anchor will continue to struggle.", "replies": [{"id": "i0mna31", "text": "what does grocery anchor mean? long lease? or with small shops in big grocery centers?", "replies": [{"id": "i0mwbn3", "text": "It is a retail center with a bunch of small inline retail tenants and has a grocery store as the main large tenant. \n\nThe small retail tenants tend to benefit from the frequent traffic to the grocery center so these places have higher rent and lower vacancy.\n\nAlso Covid proved that even in a disaster, the grocery store stays open for business.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "i0qy6oj", "text": "You don't think strip malls or single unit retail will be good anywhere in the country??", "replies": [{"id": "i0re62h", "text": "In long term, no. But who knows.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i0md15k", "text": "Usually whichever section I am not employed in. But more specifically, investors can't get enough triple net industrial right now. It just prints as long as it's not in the middle of nowhere where you would expect it to be hard to backfill", "replies": [{"id": "i0oorwo", "text": "https://podcasts.apple.com/us/podcast/america-s-commercial-real-estate-show/id398600916", "replies": [], "depth": 2}], "depth": 1}, {"id": "i0mehms", "text": "Last mile warehouse", "replies": [], "depth": 1}, {"id": "i0melxf", "text": "I\u2019ll vote for multi family. \n\nhttps://youtu.be/I3U2jnn1y7g", "replies": [], "depth": 1}, {"id": "i0mfoc1", "text": "NNN Industrial is killing it here in Texas. Market for 1-5k SF spaces is nuts right now. Lot of big companies moving to Texas and with that comes all the smaller secondary and tertiary companies that are in desperate need of space. \n\nOf course owners know the demand is there and you\u2019re not going to find better caps than 5.5% where I\u2019m at, that\u2019s if you\u2019re extremely lucky.", "replies": [{"id": "i0mva86", "text": "1,000 square feet? Or 100,000???", "replies": [{"id": "i0oqe3s", "text": "Small industrial product. Apologies, I formatted that weird. 1000-5000 SF units are going like hot cakes right now.", "replies": [{"id": "i4rpsrk", "text": "Where in Texas? any idea how things are doing in the Permian basin area?", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i0mg1sg", "text": "This question is super broad. You\u2019re talking about a $16T industry. It\u2019s like saying, \u201cwhat is the best stock?\u201d\n\nIf you want to know what is the hottest CRE, look at cap rates. Last mile warehouse logistics and data centers can trade in the twos.\n\nIf you want to know what will be a solid bet for a 20 year investment horizon, it\u2019s MFH in the #5-30 top housing markets in the country.\n\nIf you want to maximize returns with more sweat, you\u2019d look for something *out* of favor, like retail.\n\nIf you want to play a trend, scoop up medical offices and flip them to large medical practice holding companies.\n\nYou have to find an angle that fits you and work it.", "replies": [{"id": "i0mgdid", "text": "Thank you", "replies": [], "depth": 2}, {"id": "i0mhfsj", "text": "What do you favor personally ?", "replies": [{"id": "i0on6y0", "text": "This is a silly question - everyone has their own investment goals and risk tolerance and your investment strategy should be personal. Other peoples opinions should be irrelevant.\n\nIf you want a relatively hands off cash flowing asset with minimal risk, comparable to bonds, then a single tenant NNN property is for you. If you are highly risk tolerant and are trying to get outsized returns relative to what you\u2019d see in the stock market, then you should be pursuing value-add retail or something along those lines, or even development.\n\nCRE is a highly cyclical industry and things fall in and out of favour all the time. It\u2019s silly to try and find an overall \u201cbest\u201d - choose an asset class that interests you and that fits your investment style and ride out the tough times.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i0mggvm", "text": "Multi-fam. Entry caps are probably ridiculously low, however, great play for a 5 year old and exit", "replies": [], "depth": 1}, {"id": "i0mj4pv", "text": "Hotels right now are still struggling. Businesses travel is still not back to 100% and the work from home trend is also causing hotel conventions room bookings to suffer that is a major source of business for some buildings.\nNow is the time to look at buying either non performing hotel mortgage notes or look at getting a hotel at a discount with the expectation of a recovery in business travel and conventions.\nI would avoid travel destination hotels. Vegas, Miami and other travel destinations seem to be close to fully recovered with the exception of those business convention bookings.", "replies": [], "depth": 1}, {"id": "i0mmmu2", "text": "Every one of the main food groups has its time. But as of now into the future value-add Multifamily and industrial are solid performers.", "replies": [], "depth": 1}, {"id": "i0mvjab", "text": "These types of questions should be deleted lol", "replies": [{"id": "i0mvlq4", "text": "I\u2019m a newbie \nStop judging", "replies": [{"id": "i0ns03g", "text": "Fair enough. As a newbie, realize that it's pointless to ask a \"question\" like this for ANY topic as it's SO vague and not really even a question at all. What does \"best\" even mean? Everyone will have different metrics, everyone will have 1000 follow up questions to try and pinpoint what you're really asking etc.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i0mzrsf", "text": "Multifamily all the way.\n\npeople always need a place to live.", "replies": [{"id": "i0n40on", "text": "What if there is no lane to develop or people suddenly start migrating to other places", "replies": [{"id": "i0n4mjr", "text": "there will always be what ifs in every category.\n\nweigh the pros and cons for your risk tolerance.\n\nthere are many solid asset classes. key to any real estate,  your not buying it for today your buying it for the future.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i0qpy1q", "text": "I look for undervalued distressed properties in areas that are going to gentrify in the future.  I paint the street exposures and triple the rents without making any substantial improvements.  My goal is to have the buildings empty and ready to sell to a developer.", "replies": [{"id": "i0qq2bb", "text": "Thanks \ud83d\ude4f", "replies": [], "depth": 2}], "depth": 1}]