DIVERSITY & RISK MITIGATION

When it comes to building a successful investment portfolio, there’s no one-size-fits-all strategy. However, conventional wisdom says your investments should include some mix of savings, stocks, bonds and real estate. Adding Commercial Real Estate holdings to an investment portfolio is an excellent way to create diversity among asset classes.

This diversity extends to the types of CRE products, and sometimes to a specific property.  Categories of CRE investment opportunities include office, retail, industrial, and / or multifamily opportunities.  If it can be leased or used to house a business, it’s a CRE opportunity. The concept of diversity distilled down to the property level applies when a single-property is occupied by multiple tenants, thus further reducing the risk of a total loss of income when a tenant terminates its lease.  As described, seasoned investors of CRE enjoy the benefit of diversity in many fashions which obviously helps to mitigate risk.