US commercial real estate investing opportunities favored core property sectors for decades. But recent market forces and new leadership could knock down long-established pillars. Traditionally, commercial real estate owners and investors built portfolios of properties by selecting from a wide array of high-quality assets defined within four core property types: office, industrial, retail and apartment. A diversified portfolio of these core assets provided consistent income from rental growth, sustained value appreciation and minimal variability in performance.1 This approach was generally enough to meet investor objectives and even outperform other financial assets...
While real estate investment purchases are falling into more stable patterns following wild pandemic-era swings, condo activity is lagging, falling to a 10-year low, according to Redfin.U.S. investors bought a total of 46,726 units in the first quarter, up 2% year over year, the real estate brokerage reported. Early 2025 activity recovered from the 3.9% drop in the fourth quarter of 2024. In the past 12 months, investment purchases have increased or shrunk by less than 4% in each direction, compared to the wide fluctuations between 2021 and 2023, as...