Certain CRE sectors continue to perform well — including multifamily, retail, and senior housing - counter to some recent headlines on office sector performance. It's important to understand diversification and focus in underlying CRE investment strategies.
Headlines about the office market often overlook strength elsewhere in commercial real estate. Certain CRE sectors continue to perform well — including multifamily, retail, and senior housing. It's important to understand diversification and focus in underlying CRE investment strategies. In this video, Fortress leaders highlight growth across sectors like multifamily, retail, and senior housing.
Beyond the headlines:
- While office properties have faced headwinds over the past several years, other CRE sectors have performed well and show strong fundamentals.
- For example, multifamily and senior housing continue to see stable demand and solid performance.
Fortress’ CRE expertise:
- A broad investment platform covering diverse property types and financing structures.
- A research-driven approach identifying resilient sectors and markets.
- Experience deploying capital across CRE debt, equity, and hybrid solutions gives an especially broad perspective that is helpful in evaluating investment opportunities.
Advisor application:
- Diversify exposure across CRE subsectors to balance risk and opportunity.
- Provide clients with access to institutional-grade real estate credit portfolios.
- Leverage Fortress insights to position alternative strategies effectively.
Spencer Garfield: As you think about the investment opportunities that exist in real estate today, the distress in office assets has definitely taken more of the headlines, but there's a lot of opportunity in other real estate sectors wherein the fundamentals remain healthy.
Tim Sloan: Point being is that sometimes the headlines for some property types, like office, overshoot and put a cloud on many of the other property types that are actually performing quite well. Let me break it down for you. Multifamily is generally performing quite well. Retail is performing well, senior housing and industrial is performing well. Student housing is performing well, and the fundamental difference is there's a general lack of supply in those other property types.
Spencer Garfield: If you think about diversifying your portfolio into real estate, there are parts of the market that have really good tailwinds.
Tim Sloan: So if you're thinking about recommending that your clients invest in commercial real estate, I would really encourage you to look at those offerings that are very diversified in terms of property type because they allow your client to have the potential to earn attractive returns.
