What Would a Pop Star Buy? A Hit Guide to Commercial Real Estate Investment

When we think of A-list performers, it’s not just the hits and sold-out tours that make them icons; many are also savvy real estate investors. From stable core properties to high-potential value-add opportunities, their investment strategies offer a fresh take on commercial real estate (CRE). So, if a pop star were investing in CRE, what would they buy?

1. Core Properties: The “Greatest Hits” of CRE

Core properties are the dependable, chart-topping classics of CRE. Think of premium office spaces or top-tier retail in prime locations—these high-quality assets offer stable income from established tenants and minimal risk. Ideal for those who want steady, reliable growth, core properties bring the kind of long-term value that never goes out of style.

2. Value-Add Properties: The “Comeback Album” of CRE

Ready for something bold? Value-add properties let investors take an asset that needs some TLC—like an older office building in a popular area—and boost its appeal through renovations or upgrades. With a bit more risk, value-add investments reward hands-on involvement and can yield impressive returns once improvements are in place.

3. Opportunistic Investments: The “New Sound” of CRE

Opportunistic properties are for those willing to take on a big project with potentially huge payoffs. This could mean redeveloping an outdated property or starting fresh with a new construction in an emerging neighborhood. While these projects require patience, they offer a chance for significant growth and innovation.

Your Takeaway Hit List

Investing in CRE, much like crafting a hit record, requires a strategy that fits your goals. Looking for stable, reliable returns? Core properties are for you. Want to add value? Try value-add projects. Ready for a bold new venture? Go opportunistic!

Ready to build your own superstar portfolio? Reach out to explore how we can tailor a CRE investment strategy that aligns with your goals and risk tolerance. Let’s find your next big investment hit together!

This article is brought to you by Arete Real Estate Advisors, LLC, where we help investors write their own real estate success story, one property at a time.