National Tenant in Industrial/Flex vs. Large Multi-Family

[Matt Yarrington]

All:  How would you compare the relative security (of your investment) for a warehouse/logistics center with office space with a national tenant like OfficeMax, Staples, or similar with a NNN lease with several years left and renew options; vs. a large 100-200 unit multi-family with decent occupancy in a good area? (leaving aside the value-add question).  The question I'm getting at is risk, and the relative security of your investment in unforseen economic conditions.  In the large multi-family, if a few units have problems, your financial picture is only impacted 2-3%. Housing is going to remain in demand in most markets.  Thoughts/Comparisons?