Niche assets offer investors focused exposure to a range of long-term drivers, including demographic change, affordable housing challenges as well as changes in technology and consumer behavior.
Investors should consider the following:
- Transaction activity has exploded in recent years and should continue to grow, particularly among emerging concepts
- In each of the last two recessions, niche assets outperformed the overall CRE benchmark
- Institutional activity in niche asset sectors is uneven and has further scope to expand
- Niche asset strategies are often operationally complex. Potential investors should consider purchasing or partnering with an experienced operator