Matching Investments to Goals 2025-2026

Real estate investing is never "one size fits all." The best opportunities depend on whether you're looking for appreciation, cash flow, stability, or high risk/high reward upside. Below is a framework to help align investment choices with specific goals, based on insights from Deloitte, PGM, MetLife, Nuveen, and Green Street.

Goal	Sectors to Watch (2025–26)	Why It Fits	Risks / Caveats
Appreciation / Growth	Industrial & Logistics, Multifamily in high-migration metros. Data centers & life sciences	Demand drivers: e-commerce, reshoring, population growth, healthcare & tech. Forecast occupancy above historical averages.	Overbuilding risk, high valuations, specialized build-outs.
Cash Flow / Yield	Self-storage, Single-family rentals, manufactured housing, Outpatient medical, Necessity retail	Resilient in downturns, essential services, long leases. Storage = historically strong performer.	Expense pressure (taxes, insurance, labor), tenant credit risk, local oversupply.
Defensive / Stability	Core multifamily in stable metros, Triple-net (NNN) leased medical & retail, Affordable housing, Self-storage	Predictable “mailbox money.” Essential demand drivers.	Lower upside vs opportunistic plays. Regulatory risk (rent control).
Opportunistic / Value-Add	Office conversions (residential, mixed-use, life sciences) Distressed retail / secondary industrial, Senior housing, & cold storage	Distress = discounted entries. Demographics & adaptive reuse opportunities.	High execution risk, permitting delays, liquidity risk.

Summary / Key Takeaways:

• Industrial and multifamily are positioned for appreciation as the cycle turns upward.

• Self-storage, NNN leases, and affordable housing remains steady performers for cash flow and stability.

• Opportunistic plays like office conversions, carry higher risk that can deliver outsized returns if executed well.

• The best strategy may be portfolio balance of mixing resilient income assets with select growth or opportunistic investments.

For our investments, we have a significant stake in growth/value-add that we made a couple of years ago. Therefore, our focus for now will be on cash flow, defensibility, and stability. Primary targets will be single tenant NNN leased assets in healthcare and solid, experiential retail. Secondary targets will be opportunistic assets that can be purchased well below replacement cost where we can manage the risk with pre-identified replacement tenants.