Manage Risks with Asset Diversification

Posted on November 14, 2018

No one investment consistently yields stellar returns and eliminates all risk of losses all of the time. Due to this unpredictability, financial advisors recommend investors spread out their investable dollars across a mix of assets, including, but not limited to, stocks, bonds, cash and real estate. However, individual investors may not find it feasible to diversify their portfolios on their own, especially in the complex world of commercial real estate (CRE), which requires significant commitments of time, resources and dollars to manage, maintain and operate successfully.

Commercial real estate includes retail properties, office buildings, warehouses, and multi-tenant apartments and hotels. Each asset class has inherent risks and rewards, as does the property’s geographic location, including the state, city, suburb and even the street where it sits. In addition, the potential returns or losses an investor will recognize from a commercial property will vary based on a variety of external market conditions that are beyond investors’ control. With this in mind, it is crucial that CRE investors work with experienced real estate professionals with deep local market knowledge, strong tenant relationships and the skills and resources to monitor and quickly respond to market risks and opportunities.

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.