Real estate will continue to be a safe harbor for investors in our time of extreme uncertainty as we move into the future. As investors seek out new investments to deploy capital, they should seek out retail investment properties that include service-oriented uses, experimental retail, and internet resistant concepts as they are more likely to provide healthy, risk adjusted returns. With so many sources of potential market volatility threatening investors, U.S. real estate remains a relatively safe asset where investors can protect their capital and receive risk-adjusted returns across different market conditions.
A hedge to the downside is to deploy capital into retail investment properties that include spaces that cannot be replicated online or of which “can’t be Amazon-ed”. For example, this includes gyms and fitness centers, hair and nail salons, yoga and martial arts studios, restaurants and delis, coffee and donut shops, take-out eateries, physical therapy and dialysis centers, pet store and other concepts that offer products or services that are not available online. Service based and internet resistant spaces can keep up with the changing market, and are more likely to pay their rents and are better positioned to survive market downturns.