Which is your preferred property type?

Just like the title states..... What is your preferred property type that you enjoy working on. Additionally, why is it your preferred choice? Curious to see what you guys have to say, specifically those that have been in the CRE industry for a bit.

7 Comments
 

Office/Retail.

I like the strategic planning behind them vs other asset classes. I like diving into the markets from consumer perspective as well.

I never worked exclusively on multi family aside from a brief internship. To me, I would probably get bored quickly. I guess people love multi family because it’s the easiest to transition to on your own with building up a portfolio. Multi family development however seems awesome.

 

My life is multifamily, so that I suppose, although I think office is very interesting and wouldn't mind a career switch one day.

Retail is awful

Commercial Real Estate Developer
 
Most Helpful

From ownership perspective, multifamily.

-Somewhat of a corny platitude, but people always need a place to live, especially in downturns. I can't imagine trying to lease a B or A class office building in a recession. Retail and office absorption are first to go.

-Easiest to manage. Apartment leases are all 12 months and don't have the complex covenants and lease terms that retail and some office have. If you sign a 15-year retail lease with a tenant in an appreciating market, you'll watch your rent growth remain stagnant while multifamily rents increase on an annual basis. Of course, the inverse is true in a depreciating market, but then you run the risk of your tenant defaulting and dealing with a vacancy in a declining environment.

-Insulation from tech advancement/market trends. Sure, new luxury apartment developments need to have competitive amenities to achieve top market rents, but you'll never have the unpredictability that retail owners face when they're leasing 45,000 SFT to a clothing retailer or one of the hundreds of "blue chips" that have been decimated by Amazon and online shopping. Apartments are apartments are apartments.

Of course this is all highly circumstantial but just my $0.02

 

Can't disagree with any of this. My vision of "retirement" is owning apartments - hopefully enough units that I can completely outsource management - and collecting the monthly coupon. Definitely the most steady from a CF perspective and least risk from obsolescence.

That said, I worked for a MF owner and the industry was not for me. Granted it was B+ product, but projects were not terribly sexy and analytically it was not stimulating.

 

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