320. Riding Out a Recession in Commercial Real Estate
Description
Key Takeaways:
Economic Uncertainty: There are potential signs of a recession, with five major economic forces potentially suppressing US economic growth through 2025-2026.
Commercial Real Estate Outlook: The market is unpredictable, with potential both positive and negative impacts across different asset classes (retail, office, multifamily, industrial).
Investment Strategy Advice:
Don't make decisions based on fear
Look at investments with a long-term perspective (5+ year horizon)
Keep cold calling and networking
Focus on buying good assets
Business Approach: Treat commercial real estate as a professional business, not a hobby. Use professional services like property managers and brokers.
Current Challenges:
High construction costs
High interest rates
Potential economic slowdown
Reduced immigration
Growing US federal deficit
Practical Tip: For flex space, consider renovating existing properties rather than building from ground up due to current economic conditions.
United States
