There's a lot of talk about "real estate" in the U.S. rebounding.
The discussion usually centers around owner-occupied single family homes. Commercial real estate is a mixed bag, with more complex dynamics.Commercial real estate includes shopping centers, raw land for development, industrial, medical, office, and many more specific, individual groups with their own business cycles.
However, one sector, multifamily, may be solidly positioned to grow for the foreseeable future.
Prices for multifamily properties are reasonable, judged by their yield to the investor, their potential appreciation, and demand.
Institutions see a sustained growth for apartment investment properties:
http://www.realestateeconomywatch.com/2013/04/apartment-markets-still-look-good/
In my area, the Coachella Valley area of California, there are hundreds of low-density, functionally-obsolescent properties built in the 1950's. My secret personal plan (don't tell anyone) is to buy older properties, rebuild them from the foundation up, going up two to three stories, improving their building standards and security, and making them relevant for today's demographics (more single parents, seniors, and women). Since they were built in the past when the urban areas were much smaller, their locations are often highly desirable.
As an investment, older multifamily properties offer cash flow as investments, and the potential of redevelopment at a timing of my own choosing in the future. If you're interested in partnering, please contact me!
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