Creating Value in Today’s Overpriced CRE Market

Source: GlobeSt — 

It is very difficult to buy properties at favorable cap rates and make appropriate returns on equity in the competitive CRE industry these days. Many property sectors, especially industrial and apartments are trading at very low cap rates, many in the sub 4.0% area. Other sectors are in some distress like retail and hotels and these property types have large bid/ask value spreads and exceedingly high risk. 

Each of the four primary CRE types, office buildings, shopping centers, industrial properties,