Chapter 1: Why Do Investors Choose Delaware Statutory Trusts?
As the Pandemic Recedes, Where Will the Real Estate Investment Opportunities Be? Some sectors of real estate are emerging from the pandemic in much better shape than others. Investors thinking about real estate need to know where to look. By Dwight Kay, Founder & CEO of Kay Properties & Investments
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he COVID-19 pandemic has been kinder to some real estate asset classes than others. Proactive investors can take advantage of opportunities with the potential to build wealth and generate income from investment real estate, particularly taxadvantaged investments. Not all investment real estate asset classes are created equal. Some pose much more inherent risk than others. These include hotels, oil- and gas-related properties, and senior care facilities. These three property types carry much greater risk for different reasons, with the pandemic offering the most recent proof of
their volatility. Best they be avoided as a general matter unless investors are extremely comfortable with the potential loss of their principal invested. The pandemic has been kinder to some real estate asset classes than others: Industrial properties, particularly those that are occupied by logistics and shipping companies or serve as distribution hubs themselves, have performed especially well as the long-term trend toward e-commerce accelerated. (Many people who previously had resisted home delivery of goods and services embraced the concept during the
pandemic.) Increased demand for delivery is expected to have positive implications for industrial real estate for years to come. Multifamily properties also have performed relatively well during the pandemic - notwithstanding eviction moratoriums - thanks to help for tenants in the form of direct aid and rental payment assistance, as well as forbearance from landlords. As the federal eviction moratorium winds down, multifamily assets may get a new boost as some units turn over. Office and retail properties have been a mixed bag during the pandemic, with suburban office
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