Can your investments handle a recession? Certain types of real estate can be a hedge for a recession. Today we will discuss 3 examples of CRE that are historically recession resistant. 

Self Storage

Minimalists aside, most people only use 20% of their belongings on a regular basis. That means 80% of their belongings just sit there taking up space. When times are good, people buy bigger homes and need to store their belongings during the moving process. When times are not so good, people downsize their homes but don’t want to part with all of their belongings so they store them instead. There are other reasons not tied to the economy that drive people to store their belongings which include divorce, death of a loved one, or a business that just needs temporary inventory storage. All of these scenarios can happen regardless of whether or not we are in a recession so this makes for a good investment that is recession resistant.

Multifamily

Everyone needs a roof over their head. If there are not enough single family homes on the market, then would-be buyers will wait it out in a rental property until they find something. When someone moves to another city for a job, sometimes they will move into a rental property until they feel comfortable with the new job and their surroundings until they purchase a home. Some people just can’t qualify for a mortgage so their only option is to live in a rental property. Regardless of the reasons, people need a place to live and that is what makes multifamily properties recession resistant.

Medical Office Buildings

More and more healthcare providers are locating their offices near complimentary services. This could be the physical therapist that is near a general practitioner or a massage therapist that is near a chiropractor. Medical needs are not going to wane anytime soon, especially for the baby boomer generation, and the increased need to have everything located close by in a particular area. Medical office buildings are recession resistant because medical needs cannot wait.

How To Get Started?

Simple Commercial Capital is here to help you navigate all of the options available if you are looking to buy a recession resistant commercial property. Look through the loan programs found at the top of our page. Each program has a brief description and loan parameters. If one of the loan programs fits your needs click the Apply Now button to start the application process or call us at 1-866-554-1120 to discuss your options in more detail. Our goal is to make this process as simple as possible for you.