The Real Estate Investing Bulletin

Elizabeth Howcroft at Reuters reports that European commercial real estate investment slumps to 11-year low in Q1 2023 . The European real estate sector faced a decline in the number of offices sold, which was attributed to concerns among investors regarding higher interest rates and an uncertain economic outlook. As a result, the level of transactions fell to a 13-year low of 10.8 billion euros ($11.94 billion), marking the lowest on record for Europe's largest real estate market. Europe seems to be facing the same, growing concerns about the financial stability of commercial real estate as the United States. The recent rise in interest rates, fears of a recession, and the decrease in office occupancy and retail foot traffic due to the COVID-19 pandemic have all contributed to the pressure on property values. Could Europe's commercial real estate data be a foreshadowing of what's ahead for the U.S.?

In a piece on WealthManagement.com , Richard J. Brunelli claimed that even before the Federal Reserve's significant rate hike on June 15, new investors were already abandoning the stock market and turning to triple-net-lease properties with tenants such as Dollar Tree, CVS Health, or Sonic Drive-In. This trend is accelerating as investors search through online listings to locate single-tenant assets available for purchase. RJBCO, led by Brunelli, has developed a specialized "Retail Location Evaluation Checklist" based on their extensive 45-year experience. This tool is designed to assist investors in making informed decisions when acquiring retail properties. Unfortunately, Brunelli has observed a growing trend of investors disregarding crucial components of the checklist and purchasing properties with significant flaws that could potentially harm their investment in the near future. It's a warning that experts are sounding amongst all types of real estate . In 2021 a...