I have a theory that commercial retail and office space takes a much larger hit in a recession than do apartment complexes or hotels, and therefore would not make as good investments.
Is this accurate in reality?
Hi,
It may take a bigger hit from business failures in a recession but it also has the ability to whether storms as rental / lease rates are typically more significant than underlying mortgage debt and one rented unit could carry an entire buildings debt service in the right location and configuration.
GR
Well, to me, it’s not the way to go… I was just at a meeting hosted by the county property appraiser and they agreed…
Plus, with the rise of e-commerce, it just doesn’t make sense to me…
I’ll stick to apartment complexes and hotels…