How Commercial Real Estate Investment Is Solving Harvard’s Retirement Crisis

REDEV - How Commercial Real Estate

Harvard Business says we are facing a new retirement crisis. However, some Canadians may have already solved it through commercial real estate investment.

What is causing today’s leading financial minds to believe that even those with substantial investment portfolios are facing a crisis in retirement? What does the Harvard Business Review see happening to many portfolios that private investors aren’t being shown, and what investment opportunities can perhaps assist Canadians dodge the coming disaster?

The Quiet Investment Crisis

In a new Harvard Business Review (HBR) report, a leading Harvard and MIT professo and Nobel Prize winning economics leader poses that the vast majority of individuals are investing using incorrect strategies, in the wrong vehicles and are watching the wrong measurements. Combined, this is setting them up for falling short of their financial goals for retirement, as well as their ability to support themselves after they finish working. HBR specifically hones in on the fact that individual investors aren’t investing well to produce passive income after their working years.

Anthony Robbins’ new book “Money” also discusses this trend and how markets are poised to deliver crushing blows to many individuals with investments in tech and the stock market unless they act quickly to appropriately restructure their portfolios with the right balance.

The Advantages of Commercial Real Estate Investing

In contrast to stocks, bonds and tech startups, direct commercial real estate investment appears to not only deliver on income needs in retirement, but also provides Canadian investors with other benefits, including:

  • Keeping ahead of inflation
  • Wealth preservation
  • Reducing tax liability
  • Above average returns
  • Built in diversification
  • Security

Honing in on the Best Commercial Property Investments

So where are the best commercial property investments today?

The barriers to commercial real estate investing have been dramatically lowered in recent years.  This is great for new savers and workers, as well as those in mid-life needing to get back on track. It’s now easier than you think to get in with new options and partnership structures. In terms of searching for an optimal location for both yields and capital growth over the next few years, Edmonton appears to stand out as a top pick.