A real estate crash of epic proportions is about to hit one unlucky asset class. For years, investors have been holding fire sales, trying to get rid of these pieces of real estate as quickly as possible. With demand falling off a cliff, subleases hitting new highs, and even more inventory about to hit the market, this real estate investing niche might be the riskiest bet we’ve seen in a long time. Which asset class is it, and what should you do if you own any of these properties?
Dave Meyer, BiggerPockets VP of Data and Analytics, has the data to prove the market crash predictors right. Investors of this asset class have seen vacancy rates hit highs that even 2008’s global financial crash couldn't compete with. And it doesn’t look like there’s any hope on the horizon. While this may be bad news for investors who currently own this asset type, new investors trying to enter the market could be picking up deals for dimes on the dollar. But you’ll need to be extremely careful when investing because the next few years could get rough.
Do you think the real estate forecasts for this asset class are overhyped? Or could this market crash be even worse than we think? Let us know in the comments below!
0:00 A Real Estate Horror Show 1:29 It's About to Get Worse 4:57 Rents to Tank 6:30: Will Office Crash? 9:12 How Bad Will It Get? 12:26 What Investors MUST Know