What is the #1 performing commercial real estate sector for the last 1, 3, 5 and 10 years?

2 Replies

Many investors are in apartments, office, warehousing etc. All good sectors.  But very few investors are in the #1 performing sector over the last 1, 3, 5 and 10 year periods, according to the National Council of Real Estate Investment Fiduciaries (NCREIF): senior housing.  Even more importantly, is is positioned to be the top sector for the next 10+ years, thanks to the retiring baby boomer population and the lack of adequate new facility development.  

If you are not in this sector, why not? Now is the time to get involved in it.  I have been involved in this sector for the past five years, and its the best opportunity I have seen in my 21 years in real estate investment.  There are two basic models - the traditional larger 50 - 100+ bed facilities, and a trend towards converting SF homes into 6-10 bed facilities.  There are pro and cons to both.  I am more strongly in favor of investing in the larger facilities, because high quality property management is already in place.  There are many other factors too.  

Please provide your thoughts and questions on this sector, and i will be happy to answer your questions.  Bottom line, you should be in this sector.  

Thanks, Dan  

Can you provide some of the pros and cons for the 6-10 bed facilities ?

@Dan Brewer  as I'm sure you're well aware, people aren't in this because they don't understand it. It's easy to default to the familiar. 

Also, I should add that it's as much of a business and operations play as it is a real estate play. You really need to know what you're doing or have a strong management company in place that does. I have clients who exist solely based on buying up these facilities from people who aren't managing them properly. 

But you're right, the returns can be eye popping if you know what you're doing. 

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.