Investor · Outer Banks OBX · Member since 2020 · 26 posts · 12 votes
All: How would you compare the relative security (of your investment) for a warehouse/logistics center with office space with a national tenant like OfficeMax, Staples, or similar with a NNN lease with several years left and renew options; vs. a large 100-200 unit multi-family with decent occupancy in a good area? (leaving aside the value-add question). The question I'm getting at is risk, and the relative security of your investment in unforseen economic conditions. In the large multi-family, if a few units have problems, your financial picture is only impacted 2-3%. Housing is going to remain in demand in most markets. Thoughts/Comparisons?
Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
5y
I invest in the former, I don't invest in the latter. Other than Staples as a very specific tenant risk, I think large single tenant net leases suit my life right now. I have multiple single tenants to hedge any one going dark. So its not a true 0 or 100% vacancy risk, more like 0% or 20%.
Staples may be put out of business by on demand online, but who knows. I don't like businesses that are vulnerable to Amazon.