The landscape for commercial real estate may look dismal from afar with high interest rates and an office space market still in shakeout mode, but pockets of opportunity remain for investors with the right approach and strategy.
Some — but by no means all — commercial real estate segments (particularly the office market) bore the brunt of the post-COVID upheaval. Even prime properties have seen ratings downgrades. Community and regional banks have been reluctant to enter the space as bank regulators and rating agencies keep a keen eye on exposure to deals on shaky footing.
But in spite of those developments, there are categories that look attractive for investors, including the retail, industrial and hotel sectors.
Real Estate Credit Investments Limited (LON:RECI) is a closed-end investment company that specialises in European real estate credit markets. Their primary objective is to provide attractive and stable returns to their shareholders, mainly in the form of quarterly dividends, by exposing them to a diversified portfolio of real estate credit investments.