Here are three reasons why private real estate is considered to be less volatile than the public financial market:
1.) Limited liquidity: While private real estate is less liquid than publicly traded investments, this limited liquidity can result in fewer fluctuations in pricing and less direct exposure to market volatility.
2.) Longer investment horizons: Private real estate funds can enable investors to endure short-term market fluctuations while managers intentionally plan property dispositions through the cycle.
3.) Unique property characteristics: Each private real estate investment has unique characteristics such as location, property type, and tenant mix. A diversified portfolio can insulate private real estate funds from broader trends and result in less correlation with public markets.
Market Highlight: Minneapolis, MN
While macroeconomic challenges continue to weigh on consumer sentiment nationally, the Twin Cities benefited from a historically tight labor market, robust wage growth, and lack of single-family housing affordability. These factors fueled three of the five strongest quarters of demand formation on record in 2022.
Demand formation is overshadowed by record-setting development activity. For the fifth consecutive year, annual net deliveries reached a new all-time high of 11,000 units in 2022, roughly 15% higher than the previous record set in 2021, according to CoStar.
If you would like to learn more about our positions in Minneapolis, please connect with a member of our investor relations team.
HREIF is Open to New Investments
The Q2 2023 private offering for Humphreys Real Estate Income Fund (HREIF) is now open!
HREIF is designed to provide investors stable, tax-efficient income from a portfolio of commercial real estate in high-growth U.S. cities. With investments across multiple sectors including multifamily, industrial, retail, and self-storage, HREIF is an opportunity to diversify your investment portfolio.
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