What is the best Commercial Real Estate asset to buy?

Mobile Home Parks! 🤫

The best asset is affordable housing like mobile home parks, multifamily, and long term RV parks.

Mobile Home Parks had a great run. 🏃🏽‍♂️

People always need a place to live in! 🛌

This does not mean it is a 100% fail-proof plan.

You have to buy at a favorable price.

Vacancies will shoot up during the down cycle of the economy, but at least the net income drop would not be like retail, office, and hotels.

The next best performing appreciation wise?
Storage Units, Industrial, Multifamily, Student Housing, and Health Care

The worst performing appreciation wise?
Office, Retail, Net Lease, Hotels, Malls

You should take consideration of the area since appreciation for the land underneath the property will be different.

But you do not bank on appreciation until you sell it.

Cash-Flow is king. 💸

Source: Green Street Commercial Property Price Index, updates monthly, one month before the present time.
Last Updated July 7, 2020
The all-property index is down 11%.