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