Is the Era of High Returns Coming to an End?
August 31, 2016 | Diana Bell | National Real Estate Investor
Is the window for oversized returns on commercial real estate behind us? Quite likely, according to Goldman Sachs, which recently issued a report implying real estate stocks may now be too risky for investors.
Real estate industry experts have mixed views, however, about whether the ship has already sailed for high returns on commercial real estate investments.
“People have read this report as if to say that this is no longer a time to get into real estate. I disagree in the sense that it assumes that people have just one motivation when investing,” says Jim Costello, senior vice president with New York City-based research firm Real Capital Analytics (RCA). “One can have a number of motivations while investing, and different types of real estate and different real estate vehicles can satisfy these motivations.”
I have been using Blue Vault Partners for the past five years. I have found them to be a valuable, unbiased resource when it comes to evaluating and comparing non-traded REITs. The reports help me analyze which sponsors are doing a responsible job of managing their offerings. This allows me to limit my REIT recommendations to only the most competitive products, and then track those REITs throughout their life cycle.