CRE Ownership Drawbacks

[Brandon Beller]

Hello all,

I am thinking of starting to invest in commercial real estate. That being said, what is the biggest drawbacks/challenges that CRE owners have to face?

Thanks,

Nick

[Scott Trench]

Quote from @Brandon Beller:

Hello all,

I am thinking of starting to invest in commercial real estate. That being said, what is the biggest drawbacks/challenges that CRE owners have to face?

Thanks,

Nick

Relative to residential, CRE investors typically won't get the same low risk, low interest rate, 30-year amortizable loans that you can get on a single family or duplex.

And, in some categories, there are questions about long term supply and demand imbalances. What will happen to office space demand as companies permanently allow much of their workforce to work remote?

What will happen to retail as online shopping continues to be faster, cheaper, and more convenient?