That dream – for most of this country’s great history – has centered on owning a home. But with the sub prime issues, some are questioning whether or not that dream is real.
Of course owning a home is only part of building wealth. Despite all the doom and gloom being reported about real estate (I can’t help but be reminded of the great Mark Twain quote, “Reports of my death have been greatly exaggerated” after hearing his death had been published in a newspaper.), commercial real estate is seeing cash returns of 5% to 8%.
Of course that’s not guaranteed and those returns aren’t without some risk. But I believe the risk-reward ratio is very good for commercial real estate.
What’s more, analysts have not reported any material reduction in commercial real estate rents.
So in my estimation, the dream is very much alive, attainable and most certainly real. And I believe commercial real estate is doing its part to keep it alive.
Labels: cbre, commercial, dividends, investing, ray wirta
