What do I recommend you do? Long a beacon of safety, the net leased investment, is still popular but more tricky than before. The reason is that this type of investment is akin to a corporate bond, you are betting on the wherewithal of a company, and as long as they stay in business you get an attractive rate over 4%. The investments are tricky now because so many companies and even industries are contracting or even disappearing. Multifamily properties in high demographic areas represent solid investments still. The key component is to analyze the accounts receivable to see what percentage of rent is being paid each month and by whom. It isn’t hard to recommend the most solid commercial real estate investment these days. It is anything to do with industrial real estate.
The big investment and institutional players are investing all of their money in industrial properties that are fully leased to tenants in the ecommerce business. As a result, there is more demand than supply, causing the yields to drop. Other than these types of investments I am advising people to wait until the market hits bottom before investing. At that point we will have price certainty and there will be opportunities to reposition properties that were foreclosed on. If you are looking to invest in South Florida commercial real estate please call me and I would be happy to discuss the options that are available in much more detail.
As always thanks for reading, stay safe and have a great day.