Commercial Real Estate Myths EXPOSED #6: How Investors Really Diversify with CRE

Hey everybody. Joseph Gozlan with Eureka Business Group. Your retail navigator for the Dallas Fort Worth market, and today we’re talking about myth number 6 in the series of myth that we’ve been busting about commercial real estate.

And today we’ll be busting the myth that talks about diversification. Oh, if I’m in the stock market, I can diversify industries. I can diversify between different stock sizes so I can get more options, more diversification than I can get in commercial real estate.

So while a certain stock can generate a much better performance than another stock, we usually see the market. Rises and falls together for the general in commercial real estate, I still have a lot of diversification options, even though it’s all one industry.

For example, I can own industrial properties that cater to bigger distribution centers, data centers.

I can also invest in medical buildings and I can have exposure to the medical industry. I can obviously invest in retail.

Obviously our preferred asset class is retail ’cause we’re the retail navigator. What, why we like that one? Because retail allows us to diversify within single property. In a single shopping center, I can have national brands and I can have local businesses.

I can have food and I can have some medical, I can have industries that are internet resistant, like insurance and real estate offices and donut shops, and I can have other businesses that, like a dance studio and so on, so we can diversify even within a single property in commercial real estate, which would be impossible to do in a single stock.

So long story short, commercial real estate allows us to diversify in so many different ways that it doesn’t really has the same risk profile as I would be in a stock portfolio , where certain stocks can perform better than others, but at the end of the day, if the stock market is crashing, most of my stocks are gonna be crashing.

So that’s why we like commercial real estate. And that’s another myth busted in our Seven Myths series busting commercial real estate myth. I’m Joseph Gland, your retail navigator for the Dallas Fort Worth market. If you’re interested in investing in commercial real estate or need help with anything real estate in Texas, give us a call, shoot us a message.

We’ll be happy to help.