Due to lack of confidence in the future performance of traditional commercial real estate property types, many investors are beginning to set aside capital for alternative assets. According to the National Real Estate Investor, such assets, including student housing, seniors housing and medical office buildings, among others, have broad demographic trends supporting their success, proved immune to the recession and offer higher yields than comparable properties in other sectors.
The current market demand for alternative assets is being driven by demographics. The 78 million baby boomers nearing retirement and 80 million echo boomers entering their college years are creating a significant need for more senior housing, medical office and student housing space. In addition to the high demand, many of these special purpose properties can be purchased at very attractive cap rates at the moment as they all seem to carry less liquidity due to their early stages of development and smaller pool of investors.
To read the full article from the National Real Estate Investor, click here.