Why do so few millennials want to invest in CRE?
Everyone I meet in person who's looking to buy CRE is either an older guy or large corporation. I don't think I've ever interacted with a millennial my age (34) who wanted to invest. The properties we sell are not out of reach for millennials, ranging $800k to $10mm. 

One of my colleague's who have been a broker for 20+ years said he's noticed a lot of millennials have become afraid of owning CRE since the financial crisis. He had one guy a year back who was making good money in tech who was turned off by the leveraging aspect of real estate. My colleague suspects that millennials don't understand debt use when it comes to business and strive to be 'debt-free' as portrayed in the media. 

What do you think the reason for this is? And what does the future of CRE look like?
[{"id": "eyqnqdh", "text": "At your price point, very few millenials have the cash or balance sheet to finance those projects. Nor do they have the experience to attract investors.", "replies": [{"id": "eyqo5yc", "text": "They just need around $250k-$300k minimum. Not having other assets is fine as long as they still have income from work. These deals used to happen a lot but stopped in the last 5 or 6 years.", "replies": [{"id": "eyqrmh7", "text": "lol what? american wages have been stagnant since 1974. i would love to know your\u2019s and your families economic history so i could have an idea on how you came to the conclusion you did.", "replies": [{"id": "eyv8n8y", "text": "No they haven't, they skyrocketed in the 80s and 90s and are doing the same right now. If you can't find a job in this economy then you've got bigger problems.", "replies": [{"id": "eyzcl91", "text": "Lol knew there would be one \"this economy is booming\" trumpet lurking.  Glad to know that there is someone dumber then the OP.", "replies": [{"id": "ez2sb90", "text": "It objectively is, to say otherwise is delusional. Not even an American.", "replies": [{"id": "ez4a0i7", "text": "Makes sense now", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "eyqrvdz", "text": "Amazingly out of touch.", "replies": [{"id": "eyscpgb", "text": "OP is an obvious troll", "replies": [], "depth": 4}], "depth": 3}, {"id": "eyr1x9v", "text": "Just need 250k? The fuck?", "replies": [], "depth": 3}, {"id": "eyrb7yx", "text": "Are you fucking high?", "replies": [{"id": "eyrdkek", "text": "What experience do you have in CRE?", "replies": [{"id": "eys7sk8", "text": "What experience do you have with people?", "replies": [{"id": "eysateq", "text": "I work in sales.", "replies": [{"id": "eysciak", "text": "Then maybe youre familiar with this study: https://www.businessinsider.com/millennials-killing-industries-because-theyre-poor-2019-5?utm_source=copy-link&amp;utm_medium=referral&amp;utm_content=topbar&amp;utm_term=mobile\n\nSorry if my first comment was harsh, you just seem pretty out of touch with the economic reality people today face.", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "eyth3fv", "text": "Go fuck yourself.", "replies": [], "depth": 3}, {"id": "eyzb2j0", "text": "Where is this money tree that gives away 250k to millennials?", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "eyqnqzk", "text": "Pussies.", "replies": [{"id": "eyqrpux", "text": "More like we dont have money to blow on risky shit, retard", "replies": [{"id": "eyqtvbf", "text": "So get a few friends together and form a RE partnership. Risky shit? Not if you follow the old adage, \"Location! Location! Location!\"", "replies": [{"id": "eyqtxf3", "text": "Don't have time for that when you work 2 jobs just to afford rent", "replies": [{"id": "eyqur6w", "text": "If you want to make it happen, you will. Some would live in a van in order to save the money. It all depends on your determination to the effort.", "replies": [{"id": "eyqvmhp", "text": "Well thanks for the positivity though", "replies": [], "depth": 6}], "depth": 5}, {"id": "eyqvihz", "text": "Why are you on this sub then??", "replies": [{"id": "eyqvk66", "text": "Came here from another sub specifically for this comment oops", "replies": [{"id": "eyu9jt2", "text": "So you\u2019re brigading then? That\u2019s against Reddit TOS", "replies": [{"id": "eyu9m2x", "text": "Fuck no someone just mentioned it and so I came here.", "replies": [{"id": "eyu9nv9", "text": "That\u2019s what brigading is.", "replies": [{"id": "eyu9u9f", "text": "Brigading is when a group of people organize and go after one thing. Do I look like a group of people?", "replies": [{"id": "eyub2x1", "text": "Someone mentioned it and you did it as well. 2 is a group. It\u2019s pretty simple buckaroo.", "replies": [{"id": "eyubhy5", "text": "Oh boy, I saw something I disagreed with and decided to state my opinion and maybe throw a few jabs here or there. Nothing on the post I saw said to brigade/raid this post, nor did I contact with any other person and tell them to come onto this thread. This was my own decision, as was theirs, without any other influence. Do I need to spell it out to you anymore, or are you just that hurt by a few mean comments that you'd try to become the reddit police?", "replies": [{"id": "eyufiya", "text": "&gt; without any other influence\n\n\nSo you saw the post about this post, and somehow you can still say you came here without any other influence? Are you okay?", "replies": [{"id": "eyug4fp", "text": "Yeah, without any influence other than the post, and the post does not mention anything telling people to go comment on it. I don't see how the fuck it could be a 'brigade' if a brigade wasn't organized.  I wasn't even aware that another person had come to this post with the same points I had. There was no organized attack, hence there was no brigade. Are you trying to say if I see something I disagree with I'm not allowed to discuss it, just because other people just happen to have done the same?  Are you okay?", "replies": [{"id": "eyuj90n", "text": "You aren\u2019t worth talking to. Goodbye.", "replies": [{"id": "eyujfem", "text": "Was about to say the same dipshit", "replies": [{"id": "eyunicg", "text": "Well that\u2019s pretty rude and uncalled for. You should try and learn some self control lil guy.", "replies": [{"id": "eyuuyof", "text": "Thought I wasnt worth talking to lolll", "replies": [{"id": "eyv0xwn", "text": "You aren\u2019t. But I don\u2019t let people insult me. I understand you probably can\u2019t help yourself though. Good luck", "replies": [{"id": "eyv3nc7", "text": "kk", "replies": [], "depth": 20}], "depth": 19}], "depth": 18}], "depth": 17}], "depth": 16}], "depth": 15}], "depth": 14}], "depth": 13}], "depth": 12}], "depth": 11}], "depth": 10}], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}, {"id": "eyzf9yh", "text": "I can get all my friends and we will be about 225k short", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "eyqxyla", "text": "I personally believe that we are at the top of the business cycle and due for a price correction/recession.  RE is probably the wrong asset class for anyone who isn\u2019t already fully invested with accessible capital gains.   Most millennials should be in more liquid assets which are a better fit for their current economic realities.", "replies": [{"id": "eyqycom", "text": "Are economic realities much different than 20 years ago? It seems like most people are actually doing better.", "replies": [{"id": "eyr2ixe", "text": "You're precious", "replies": [{"id": "eyr2upu", "text": "Economy is doing great, hun!", "replies": [{"id": "eyrc09q", "text": "No it's really not", "replies": [{"id": "eyrdhyi", "text": "The economy disagrees with you.", "replies": [], "depth": 6}, {"id": "eyro8gp", "text": "Are you retarded.", "replies": [], "depth": 6}], "depth": 5}, {"id": "eys0fpk", "text": "Then why cant you sell CRE?", "replies": [{"id": "eysarqp", "text": "I can and do.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "eyrcpbo", "text": "20 years ago I lived in Australia, 10 years ago I had an S Class Mercedes.  Perhaps your segment of population is doing well,  Mine is certainly not.", "replies": [], "depth": 3}, {"id": "eyxefz9", "text": "Might be doing better for *you*\n\nBut it\u2019s starting to seem like I\u2019m gonna need a PhD to get a job at McDonalds.\n\nWhat was the old joke? \n*Yes Doctor, I would like fries with that*", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "eyqy1t3", "text": "I'm a millennial (25 years old). CRE is probably the most expensive investment class there is. Not to mention the last type of investment that most people get into. Usually its stocks in 401ks, IRAs etc first. Then they buy homes to live in. And then later in life, alternative investments like CRE. You simply can't get into CRE unless you have 250k or more. And you'll need more than 250k in any of the big cities. I dont think NYC has an investment grade property less than 750k. A 5 unit multifamily in the bronx is 785k.", "replies": [{"id": "eyqy7q2", "text": "I'm more referring to the millennials that have the money and the ability to get financing but simply choose not to.", "replies": [{"id": "eyqzlzk", "text": "Still in that case, CRE is simply not as attractive as other investments. (I personally managed and have ownership in 2 commercial properties with a total of 16 units) CAP rates are still low yet interest rates are high. The spread between those two are not that big. Not to mention the greater risks of CRE vs other assets like stock funds or REITs. \n\nSay you have 1 MM to invest. You can use that to buy a single 3MM property that has a cap of 7% with worse terms than a residential mortgage. Or you can buy multiple under 5 unit multifamily properties that add up to 4MM that have a cap of 7% with a 30 year mortgage with no balloon payments and a much lower interest rate. And those properties are in class a or b areas.", "replies": [{"id": "eyr380m", "text": "We've had a record number of clients this year interested in CRE. Multi-families are doing good as well but people are VERY interested in mutli-tenant retail. Not a lot of investors are doing balloon loans from what I've seen.", "replies": [{"id": "eyr4wwh", "text": "You can get a residential like loan with 30 year payments and 30 year amortization with no balloon on CRE?", "replies": [{"id": "eyr5vrr", "text": "Not 30 year, more likely 20-25. Balloon isn't a requirement.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "eyzd6d8", "text": "Lol so your referring to maybe 3% of the generation.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "eyqzujc", "text": "We don't want to invest in CRE because once the workers organize a communist revolution and overthrow capitalism, commercial real estate will become publicly owned and we don't want to be the ones who get guillotined.", "replies": [{"id": "eyr1t0x", "text": "What workers? CRE investors generally don't have  full time employees of their own.", "replies": [{"id": "eyr1u8u", "text": "Precisely.", "replies": [], "depth": 3}], "depth": 2}, {"id": "eyrn4w8", "text": "Don\u2019t bother lol.  He\u2019s one of the ones getting thrown in the Gulag.", "replies": [], "depth": 2}], "depth": 1}, {"id": "eyr2it7", "text": "Dude you are fucking delusional and out of touch. Guarantee you were born before 1980.", "replies": [{"id": "eyr2qga", "text": "I stated how old I am in my post. Not sure what my age has to do with the topic.", "replies": [{"id": "eyr37bz", "text": "Because you have the naivet\u00e9 of a fixed world Baby Boomer who thinks the world still operates like it did in their youth.", "replies": [{"id": "eyr3g7j", "text": "What makes you think that?", "replies": [{"id": "eyr51f8", "text": "&gt; The properties we sell are not out of reach for Millennials, ranging $800k-$10M.\n\nThe fact that this doesn\u2019t phase you demonstrates how out of touch you are. When another user pointed this out you dropped it to $250k-$300k. We don\u2019t have that much lying around to just invest, you live in a reality that\u2019s kind of fringe because there\u2019s nothing casual about investing $250,000, especially for 24-37 year olds. You also asked \u201cHow come those who can afford it, don\u2019t do it\u201d. There are Millennials that can afford it, it\u2019s just that the pool of Millennials that can do it isn\u2019t as large as the previous generation. Know why? Because we don\u2019t make a decent living anymore like our prior counterparts. \n\nThe reason I was curious about your age is because this oblivious mindset is very prevalent in Boomers who think the world still operates like it did back in 1972. Just because they were able to afford two semesters of college and a brand new Camaro from working a summer job at McDonalds doesn\u2019t mean their children/grandchildren can do it.  When we can\u2019t, it\u2019s a problem. There\u2019s articles every week talking about the industries Millennials are killing, this is probably one of them. There\u2019s just not enough money being spread around to support these things anymore, and good riddance. Fuck the cause, but I welcome the symptoms if it makes CEOs sweat.", "replies": [{"id": "eyr6jm8", "text": "I didn't drop it to $250k-$300k. I stated the cost of the properties in my original post which requires a downpayment including fees of $250k-$300k for the purchase price of $800k on the lower end. \n\nA lot of people who are working professionals have 3x that type of money throughout other investment accounts. Oh well, I'm a millennial, not a boomer so I don't know what your point is.", "replies": [{"id": "eyr6s3c", "text": "My point is you\u2019re out of touch. You made this thread asking why Millennials aren\u2019t investing. We told you why. You\u2019re just being thick headed, might not be a Boomer but you sure act like one. Guarantee as the years go on you\u2019ll still be asking this question because things aren\u2019t about to get better. Not my problem though.", "replies": [{"id": "eyrom5p", "text": "I feel like you're being a bit of a dimwit, he's obviously not talking about your average joe - majority of people back in the 70s couldn't afford big time CRE investments either, and their real income was actually lower. He's talking about high net worth people, and yes people like this exist in all age ranges, even zoomers! They're obviously a minority, but they are a thing - whether through rich parents, or just working at a high tier firm in finance/law/tech or some bigshot in media/sports.", "replies": [{"id": "eyroxmu", "text": "Then why did he make a thread detailing a noticeable decline? There\u2019s a reason it\u2019s that way, and I answered why. \n\nDimwit? Nice one.", "replies": [], "depth": 9}, {"id": "eyze3vc", "text": "He said \"anyone\"", "replies": [], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}, {"id": "eysdrfp", "text": "tbf you can be born before 1980 and not a boomer", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "eyr3qo0", "text": "OP how much inheritance did you get? Out of touch scum", "replies": [], "depth": 1}, {"id": "eyrnf2t", "text": "Lol imagine being this oblivious", "replies": [{"id": "eyxnpu4", "text": "Imagine buying into the whole \"millennials have it harder\" BS\n\nAnd then trying to get the best out of yourself and your investment career.", "replies": [], "depth": 2}], "depth": 1}, {"id": "eysdfvt", "text": "\\&gt; The properties we sell are not out of reach for millennials, ranging $800k to $10mm. \n\n&amp;#x200B;\n\nlol wut", "replies": [], "depth": 1}, {"id": "eyui28u", "text": "Millennial here, who worked in CRE as an admin, but was privy to what was going on in the back rooms. CRE is full of vultures looking to make a quick buck. I wouldn't touch it even if I had 10 million dollars.", "replies": [], "depth": 1}, {"id": "eyv67yv", "text": "Reminder Gen Z has already surpassed Millennials despite half of them still being in highschool, proving once and for all it isn't muh Boomers ruined the economy, they really are just a uniquely shit generation.", "replies": [{"id": "eyzewz6", "text": "Tick Tock Tick Tock....  your life is running out.", "replies": [{"id": "ez2tdnf", "text": "I'm 21 lel, just didn't feel the need to sell my soul for the \"honour\" of living in a shitty giant city.", "replies": [{"id": "ez4a2te", "text": "Yea cities fucking suck", "replies": [{"id": "ez7lujy", "text": "Yeah, honestly I was here just to troll, but I've never gotten the appeal, I guess I'm lucky that my job doesn't tie me to a big city but some people actively brag about living in Melbourne despite clearly being miserable.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "eyxelo6", "text": "800k to 10m\n\nAnd how is that in the millennial price range?\n\nI have $3, and I\u2019m pretty sure that makes me rich to millennial standards.", "replies": [], "depth": 1}, {"id": "eyyftc4", "text": "It's pretty simple and probably doesn't have anything to do with millenials being poor.\nNew investors are encouraged by others to start small and start with something they understand.\nBiggerPockets will usually recommend people to start with a single family portfolio before going into CRE.\n\nI almost regret spending the first 7 years of my real estate investing career in single family. I learned a lot. But I missed out on the real money.\n\nThe real money is in CRE.\n\nSingle family offers 20-50% returns on undervalued flips.\nCRE can offer 50-300% returns.\n\nCRE does require more money, more patience, some understanding of businesses who occupy CRE. It can take years to stabilize a CRE. \n\nSingle family is easy, anyone will rent your house anywhere in the US within 30 days.\n\nAnyways, I think many people avoid CRE because they think it's a requirement to start with single family.", "replies": [{"id": "eyzepk4", "text": "This is on point.\n\nI'm a millennial and started in residential for basically these exact reasons. Residential is cakewalk for anyone with patience, business savvy, and a little education.", "replies": [], "depth": 2}], "depth": 1}, {"id": "eyyz1qt", "text": "Def true - I do a fair amount with private family offices around the world, and its notable that as the dads hand over to the kids there is a swing towards more PE/VC type investing.  CRE is what dad and grandad did, so not seen as exciting.\n\nHave had some success turning them onto CRE challengers such as urban farming, as well proptech distruptors.", "replies": [], "depth": 1}, {"id": "eyzdviz", "text": "I'm a millennial and invest in residential units. I'd LOVE to get into commercial. It's anecdotal, but I've listed some reasons why I'm not in CRE.\n\n1. I'm in a LCOL area where I can spend $200k and buy two class b condos in a working class area (with about $10k to $15k left over) or I can get a class c office space in a shitty part of town. I like the idea of having two tenants instead of one because it doesn't hurt as much when one stops paying. \n\n2. Residential is safe and profitable because of the growing housing shortage for working class rentals. \n\n3. I'm good at residential and feel comfortable with it. CRE seems like it's a bigger headache, but I might just be imagining that.\n\n4. The types of businesses I'd be renting to in that class c office aren't going to be good. My prospects would be smoke shops and seedy cell-phone repair outlets. If I get really lucky, I might end up with a Boost Mobile. Granted, my residential tenants don't have much, but they're good people who go to work and pay their bills.", "replies": [], "depth": 1}, {"id": "ez14r55", "text": "I\u2019m a millennial with money! What market are you in? PM me.", "replies": [], "depth": 1}, {"id": "ezp5s6o", "text": "I was almost 40 before I had any net wealth built. That's my best guess. As a GenXer that survived the recession, I watch how millennials spend their money in horror. $2000/mo. lifestyle and amenity apartments,  Instagrammable European vacations, it hurts my checkbook just thinking about it.", "replies": [], "depth": 1}]