How to weather hypersupply and recession

[Nick L.]

First, thanks to @Douglas Dowell and others for switching me onto Glenn Mueller. His latest commercial real estate cycle analysis is here: http://www.irem.org/File%20Library/Events/IFLC/IFL...

I am worried about overbuilding in Class A apartments and about the long-term prospects of big box retail, office and industrial properties with current employment and technology trends. But that doesn't mean we have to withdraw from real estate altogether.

Based on Dr Mueller's analysis and my own observations, I am looking at the following as good sectors to invest in real estate and ride out a possible crash in the next few years.

- Suburban B/C apartments. These are the workhorses of residential investing, and nobody is building new inventory so supply is constructed.

- Niche neighborhood plays. Every market is made up of individual pockets and they cannot all be oversupplied.

- Local retail and strip malls. If we are moving to a "gig economy" all those new business owners are going to need cheap space. Have to be careful not to rely on businesses that will be displaced by the internet.

- Hotels in the right market. Raleigh and Dallas stand out as two that seem underserved compared to the economic growth.

Do you guys have other good sectors or cities to weather the storm?