In this episode of Strategic Investor Radio, host Charley Wright interviews James Hanson, the president and CEO of Morristown, NJ-based Hampshire Real Estate Company. Mr. Hanson is co-chair of the Rutgers University Center of Real Estate Studies and an advisor to multiple endowment funds and pension plans throughout the company. Hampshire is a third-generation family company, founded by Mr. Hanson’s grandfather in 1922, and it currently has more than 100 employees managing 259 properties in 28 states.
Mr. Hanson offers a very sobering view on the future of real estate. He’s concerned that the U.S. is likely to enter another recession in the next four years, and that “yield chasing” has made attractive investment opportunities more difficult to find. He’s bearish on multi-family real estate, for which he says supply has outstripped demand; and even industrial properties, previously a favorite area of his firm, may be overbought.
The areas Hanson likes include triple-net leases, necessity-based retail, and self-storage.
1. The first refers to single-tenant leases to investment-grade corporations, with 15-20-year terms, that are net of taxes, insurance, and operating income.
2. The second refers to retailers that deal in the necessities of life: i.e., grocery stores.
3. The third, self-storage, is part of what Hanson refers to as real estate “alternatives,” along with senior living and student housing.
Hampshire has experience in a wide array of real estate properties, but not senior living and student housing. Hanson says he likes self-storage because it addresses life emergencies that happen during economic good times and bad (i.e., divorce).
When asked what investors should look for when investing with a real estate company, Mr. Hanson listed three things:
When asked what keeps him up at night, Hanson’s answer was simple: “The economy.” With no real trend or pattern, but plenty of volatility, it’s difficult to plan. He also noted that the supposed recovery from the previous recession has been much weaker than previous recoveries.
Global Capital Network Conference - RxMM Health - George Roth
Global Capital Network Conference - Archangels Investors - Doug Pennington
Global Capital Network Conference - Wall Street Research - Alan Stone & Sarah Ishag
AltsLA - with Paul Haman - Markets Group, Producer of the Conference
AltsLA Conference - with Lisa Vioni - Hedge Connection
AltsLA Conference - with Eric Metz, CFA, Spider Rock Advisors
AltsLA Conference - with Dan Vetter, CFA, M360 Advisors
AltsLA Conference - with Bill Kelly, CEO of CAIA
Stock Market Research & Management - Navellier & Associates - with Louis Navellier
Hybrid Equity & Commodity Trading Strategy - Incline Investment Management - with Ted Parkhill
Commodity Trading - Commodity Asset Management - with Nate Polachek
Impact Investing - Community Capital Management - with David Sand
Emerging Market Long/Short Strategies - Boston Partners - with Paul Heathwood, CFA
Alternative Investments - Lake Partners - with Rick Lake
An Insider's View of the Credit Crisis of 2008 - with Mark Landis
Factor Based ETF's - IndexIQ - with Sal Bruno
Commercial Real Estate Securities Investing - Salient Partners - with Joel Beam
Trading Volatility - Kaizen Advisors- with Matt Thompson, CFA
High Yield/Income Investing - Granite Shares - with Will Rhind
Cryptocurrency Asset Manager - Digital Asset Strategies - with Alex Gostomelsky
Create your
podcast in
minutes
It is Free
The Commercial Edge: Unleash the Power of People
The emPOWERed Half Hour
U.S Property Podcast
Aligned Money Show
Dubai Property Podcast
The Ramsey Show
The Clark Howard Podcast