Property Types to Look Out For!

Suburban offices space is expected to perform well in 2016 based on economic and job growth. Student housing is also performing very well and is expected to continue this trend. Despite facing the challenge of more and more students opting for online education, student housing is still going strong. 

Street retail and urban storefronts are also highly sought-after by investors. They have been experiencing an overall increase in deal volume in the past few years. These property types continue to do well, however the required rental rate growth needed to make new deals happen could prove to be unrealistic. 

Neighborhood community centers are also garnering attention for investors. In communities where there's an increase in demand for apartment units, the demand for neighborhood community centers also seems to increases. Strip center tenants have proven to be performing better than mall tenants.  

Big-Box Warehouse space received a rating of 5.7, according to investors surveyed, its highest rating since mid-2014. This type of property is in high demand due to the increase in e-commerce. Because of this, rent growth for big-box warehouse properties has been stronger than expected. Self-storage properties have also seen an increase in demand and pricing.

Finally, Senior Housing is experiencing an increased in demand. Quite a few property types on the rise, which would you invest in?

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Written by Front Street Intern Aaron Garfinkel.