REITs and the Changing Landscape of North American Real Estate
Martin Karcz - Jul 15, 2019
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Most often, an investor’s view of real estate trends tends to be myopic, concentrating mostly on their own experiences in their home city or neighbourhood. Investment decisions are therefore often based on subjectively observed localized situations.
When viewing real estate investing through such a narrow lens, we seldom consider the dynamics and profitability of owning other types of real estate, such as a shopping mall, a parking garage, a 30-story office tower, an industrial park, a data centre, not to mention an airport or a hotel. Yet, the transactional volume and total value of residential real estate is only a fraction of the value of commercial real estate.
In this article I would like to point out some evolving socioeconomic trends that are shaping real estate investing and creating new winners in an ever-changing game of marrying technological breakthroughs with conventional real estate.