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three tips for investing in todays commercial real estate market

Three Tips for Investing in Today’s Commercial Real Estate Market 

  • John Hopfensperger
  • Blogs

We recently hosted a panel where several financial experts, including Mark MacArthur and Jeff Simpson with Ausdal Financial Partners, shared some of their top investment insights – including the value of investing in commercial real estate, specifically Early Childhood Education (ECE). While the conversation was primarily focused on a current CMK Properties offering available to accredited investors, three macro investing takeaways bubbled to the surface:

 *If you’re interested in joining CMK’s opportunity portal available to accredited investors or are interested in learning more about the accreditation process, message us here. We’re enthusiastic about these offers and are always happy to discuss them and/or add you to our list. 

1. Nashville, Tennessee and Huntsville, Alabama are prime real estate investment markets 

It’s no surprise that Nashville is an “it” city. ​​Urban Land Institute and PricewaterhouseCoopers released its 2022 Emerging Trends in Real Estate report and ranked Nashville as the No. 1 U.S. Real Estate Market to watch for the second year in a row. 

What may be surprising is that many investing experts are also directing their clients toward Huntsville, Alabama. The northern Alabama metro area — known famously as Rocket City thanks to its aerospace and defense roots — is experiencing significant growth, and that’s expected to continue. The FBI announced it’s investing $1 billion to build out its footprint in the area, a plan that will potentially add thousands of additional jobs to Huntsville’s overall employment. 

2. Early Childhood Education is a booming sector  

Many are familiar with commercial real estate investing as it pertains to REITs and Medical Office Buildings (MOBs). Single tenant leases in the ECE vertical aren’t as familiar though. Here’s why ECE makes a ton of sense: From a 2020 study, more than 64% of children ages 3-5 are enrolled in all-day preschool programs, so there’s consistent demand for properties to house those preschools. Also, 55% of American families spend more than $10,000 annually on childcare, and this number is projected to continue increasing over the coming years. 

With the growth that experts are projecting for this industry, and the steady growth we’ve seen in preschool enrollment over the past few decades, this sector presents robust and reliable investment opportunities for passive income generation. 

*For more on this topic, check out our blog on the topic, here

3. Real estate is still a sound investment 

Consumers understand that on a macro level real estate is taking a hit, particularly when it comes to high mortgage rates. However, there are still many opportunities for sound real estate investing, including and especially, early childhood education. 

Urban areas are experiencing significant wait lists for ECE, proving the need for more locations and solidifying the value of existing ones. Further, ECE growth continued at a steady clip during the 2008 recession, with preschool costs being treated as more necessary than anything, with the exception of housing, food and water and transportation. Additionally, the service-geared ECE sector is fully insulated from the risk of being phased out by the growth of Amazon and eCommerce.

To ensure you’re in the know about CMK’s opportunities, schedule a meeting to join our accredited investor list. And to stay up to date on real estate investment news and more, subscribe to our newsletter. 

John Hopfensperger
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