How CRE Investments Can Hedge Against Recessionary Risks

Posted on February 06, 2020

While economic and political uncertainty in the election year will likely produce short-term volatility in the equity markets and slow the country’s record period of economic expansion, long-held commercial property with sound fundamentals is well positioned to survive and even thrive through a market downturn.

Three interest rate cuts in 2019 have kept the federal funds rate extremely low, helping to fuel consumer confidence and spending, including a significant amount of capital chasing real estate deals. In the event the economy slows more rapidly than expected, real estate values for properties in the right locations with good credit quality tenants can continue to appreciate while investors can continue to rely on tenant rent for cash flow. Moreover, if history is any indication of the future, commercial real estate has proven its resiliency as a market class through the most recent recession beginning in 2008, providing investors with buying opportunities that have appreciated significantly over the past 10 years.

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 info@orionmiami.com.