Riding Out a Recession in Commercial Real Estate - Office Hours

Key Takeaways: Economic Uncertainty: There are potential signs of a recession, with five major economic forces potentially suppressing US economic growth through 2025-2026. Commercial Real Estate Outlook: The market is unpredictable, with potential both positive and negative impacts across different asset classes (retail, office, multifamily, industrial). Investment Strategy Advice: Don't make decisions based on fear Look at investments with a long-term perspective (5+ year horizon) Keep cold calling and networking Focus on buying good assets Business Approach: Treat commercial real estate as a professional business, not a hobby. Use professional services like property managers and brokers. Current Challenges: High construction costs High interest rates Potential economic slowdown Reduced immigration Growing US federal deficit Practical Tip: For flex space, consider renovating existing properties rather than building from ground up due to current economic conditions.