Six Property Types Strong Enough to Thrive in a Recession Kenny Slaught

High Street Retail

High-street retail does fare better during a recession and that is due to their high-end consumers. These high-end consumers continue to spend, even during a recession. High-street retail is a great investment from an investor standpoint. With the high rents and highly sought after street locations.

Grocery-anchored Shopping Centers

Here is the good news for grocery-anchored shopping centers….even during a recession, grocery stores continue to drive sales. People still have to eat. The grocery stores drive the traffic into the centers and help the smaller stores.

Medical Office Buildings

What is THE most recession-proof property type, you ask? Medical office buildings or any medical-related real estate. And, it makes a lot of sense why. Think about it. These tenants tend to stay in a space for a long period of time. They’ve invested a lot into the building such as the exam rooms, plumbing is more than the regular build-out, they require special equipment. It would be very expensive to move. The tenants are more likely to enter into long-term leases and the typically stay there.

Big-box Warehouses

As e-commerce continues to grow, big-box warehouses will continue to thrive. And from the looks of it, e-commerce is only on the incline year after year. Even during a recession, it is more likely that more purchases will occur online for various reasons. One of those reasons being the purchaser will be able to save money on gas and they can also shop around at different stores for the lowest price right from their home.

Infill Fulfillment Centers

Retailers are all stepping up their game when it comes to online shopping and shipping. With the largest online competitor, Amazon, other e-commerce companies are looking for more fulfillment centers located closer to downtown areas. But, instead of big-box warehouse space, they are searching for smaller infill fulfillment centers that are around 100,000 to 200,000 square feet and located closer to main cities.

Self-storage facilities

The self-storage industry is said to be recession-resistant. This has a lot to do with the fact that when the economy is seeing many ups and downs, people continue to go through changes. This industry is only going to grow as the demand rises for self storage units. Don’t be surprised if you see a new self-storage facility popping up in your area. Or two. The demand in this industry is greater than ever.