Commercial Real Estate Helps Investors Diversify Portfolios, Hedge against Market Volatility

Posted on October 04, 2018

As the U.S. economy continues to chug along on its second longest expansion in history, investors in the equity markets are facing chopping waters as they look for signs of when the party may end. After all, equity markets can change direction quickly and wipe out hundreds-of-thousands of investors’ hard-earned savings. To minimize this risk while also improving cash flow and tax efficiency over the long-term, investors should consider diversifying their portfolios with commercial real estate.

While the value of a commercial property will fluctuate over time, it will not subject investors to the same heart-stopping swings of the stock market. Depending on when an investor buys a commercial property, where it is located and its mix of tenants, the prospect that the property will increase in value over time is rather strong. While this does not mean that speculative property appreciation is risk-free, it does mean that investors working with experienced advisors have more control over the performance of their investments. For example, investors can increase cash flow and improve commercial property value over the long-term by making capital improvements, raising rents, selling assets or purchasing assets that they lease back to tenants.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email

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