EXR - Forget VNQ: Build Your Own High-Yielding Real Estate Portfolio

2024-05-17 07:00:00 ET

Summary

• The tallest building in Fort Worth, Texas, was just foreclosed at a 91% discount to its price three years ago.
• The commercial real estate sector is facing significant challenges, including high vacancy rates and a wave of $2 trillion in maturities over the next three years.
• Building a diversified portfolio of hand-picked real estate stocks can provide better returns compared to investing in the Vanguard Real Estate ETF.

Introduction

According to Redfin , the median home price in the United States was $420 thousand in March, an increase of 4.8% compared to the prior-year period.

I'm bringing this up because, in Fort Worth, Texas, the tallest office building was just sold for just $12.3 million , a little less than 30x the median home price.

It's a silly comparison, which I'm only using to show how cheap the building is....

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