How Baby Boomers Will Affect the Commercial RE Market

[Roman Rosario]

My mom recently was discussing her retirement with me and it dawned on me how much the baby boom generation will impact the commercial real estate investment market. I was a partner for 8 years at a national firm brokering commercial real estate investments so my mom was asking me about potentially investing in an asset. What she needs is yield. The stock market hasn't given her the returns she desires and almost no annual yield. Given that the baby boomers just started reaching age 65 in 2011 and will likely move their stocks into higher yielding assets, I am prompted to believe that a significant amount of equity will be pumped into commercial real estate. This is already evident by the massive amounts of money being raised by the likes of Blackstone, American Realty Capital, Cole, etc.