Warehouses are definitely in demand among family offices and HNWIs. But some other property sectors also look promising.
As high-net-worth individuals (HNWI) and family offices survey the commercial real estate landscape, they’re seeing some peaks and some craters. They assuredly lacked a roadmap for navigating a landscape marred by the coronavirus pandemic, though.
However, HNWI and family offices are finding their way through this uncharted territory. And their compasses are pointing them toward commercial real estate investments that they believe are positioned for long-term growth.
In this climate, investors and advisers say, HNWI and family offices are steering toward acquisitions of medical assets, warehouses and multifamily properties.
As high-net-worth individuals (HNWI) and family offices survey the commercial real estate landscape, they’re seeing some peaks and some craters. They assuredly lacked a roadmap for navigating a landscape marred by the coronavirus pandemic, though.
However, HNWI and family offices are finding their way through this uncharted territory. And their compasses are pointing them toward commercial real estate investments that they believe are positioned for long-term growth.
In this climate, investors and advisers say, HNWI and family offices are steering toward acquisitions of medical assets, warehouses and multifamily properties.
“With real estate, my clients are willing to settle for lower short-term returns for stability. And the quality cash flow from real estate opportunities is attractive as a long-term investment for them,” says Mark Germain, managing director of Mercer Advisors Inc., a wealth management firm in Denver.
In pursuit of stability and cash flow amid the current economic environment, HNWI and family offices are looking at recession-resistant asset classes, says Charles “Chick” Atkins, principal of Atkins Cos., a real estate developer, investor and manager based in West Orange, N.J. Atkins points to the medical office sector as a standout in this regard, thanks in part due to pandemic-spurred demand for health care services. This trend includes stand-alone offices, retail spaces, medical clinics and urgent care facilities, according to Atkins and others.
