Wiser Wealth: Post-Covid, Emotion Could Play a Stronger Role in Commercial Real Estate Investment

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In many business dealings, the sage advice given is to check your emotions at the door and focus on the financial aspect. That may be logical, but humans are not robots. The way something makes us feel can be what finally tips the scale one way or another on a decision.

The commercial real estate world may be seeing that play out right now. Spencer Levy of REBusinessOnline elaborates, discussing how when Covid was at its worst that many buyers had plans to drastically cut back on their property purchases.

It was also common for businesses to plan to cancel any further plans to expand with new offices. And yet, as we now reach a point where the pandemic has grown less severe, we see data that buying has not slowed down as much as people said.

The explanation is that a lot of people may have gotten whipped up into a frenzy by all the dire media coverage and that initially led them to plan by their emotions rather than the long-term data. However, emotion swings both ways, and with Covid now more manageable, people’s desires to socialize are becoming more of a priority.

Levy argues that while many fear that Covid has spelled the end for purchases on places like offices, that it is really only a matter of time until people want to have their social environments back. Which would mean a return to better business for real estate.

Fred Hubler, Chief Wealth Strategist for Creative Capital Wealth Management Group has been using institutional access to commercial real estate as part of his “endowment model” portfolio for 18 years. Say Hubler, “when covid happened, we looked for what the “no brainer” investments were”.

“Distribution centers leased to Amazon and old K-marts that became storage, were themes we liked during and post a covid shock to real estate,” Hubler said. “I believe the simpler the investment thesis, the more likely it works when things go wrong. If an investment needs 4 pages to explain what and how they make money for clients, we pass, every time.”

We have seen how big of a push there was for students to return to school rather than remain virtual. So though we are not there yet, it may only be a matter of time until workers feel emotionally unfulfilled by being distant. And if that is the case, there will once again be a strong market for purchases such as offices.

For more angles that you should consider when getting involved in commercial real estate, be sure to read REBusinessOnline’s article here.

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In our next NoonZoom happening today (12/7) at noon, Fred Hubler, Chief Wealth Strategist for Creative Capital Wealth Management Group will share 5 wealth growth strategies, including Qualified Opportunity Zones, he has learned from his nearly two decades of working with high-net-worth individuals and families.

He will also share investments and strategies that are only available to accredited investors as well as some new spins on existing strategies.

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Disclaimer:
MONTCO.Today is a business news websites owned by American Community Journals (ACJ). ACJ is not a registered investment advisor. Any views, opinions, strategies, and suggestions featured in the content of the NoonZoom webinar and the Wiser Wealth segments found on MONTCO.Today and in our e-blasts do not necessarily reflect the views and opinions of ACJ, its staff, owners, board members, or other stakeholders. All views, advice, and opinions regarding investments and tax advice are of Fred Hubler registered investment advisor of Creative Capital Wealth Management (CCWM) of Phoenixville PA. Much of their content is related to investments that are not FDIC insured and may lose value. Representations from CCWM, and its investment strategies’ past results may not necessarily be guarantees of future performance or returns. ACJ, is a news outlet and it and its staff, owners, board members, and other stakeholders are not responsible for any successes / profits, or failures / losses which may be a direct or indirect result of strategies obtained by our guests who participate in any Noon Zoom webinar or Wiser Wealth segment.

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