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Top Strategies for Investors to Optimize Portfolios in 2025
Now that the new year is upon us, commercial real estate (CRE) investors should be optimizing their portfolios to navigate upcoming market changes. Here's a guide that includes key trends and actionable insights:
Review Portfolio Performance
Evaluate the profitability of your investments. Look at occupancy rates, rental income, and operating costs for the previous year to identify opportunities for improvement or divestment.
Plan for Tax Efficiency
Year-end tax planning is essential. Review depreciation schedules, explore tools like 1031 exchanges to defer capital gains, and plan ahead for tax consequences of transactions made in the prior year.
Stay Updated on Market Trends
Monitor trends such as interest rates, inflation, capital markets, and tax policies to understand their implications for CRE. For example, many 2025 projections show sectors like industrial/warehousing and multifamily remaining resilient, with student housing and self-storage cooling off.
Enhance Value and Sustainability
Improving properties with energy-efficient upgrades can attract tenants, qualify for green building incentives and add long-term value to your investment. It’s also important to watch for any climate-related regulatory actions being contemplated.
Think Ahead
While finalizing your 2024 taxes, keep a close eye on 2025 and plan your moves ahead. Commercial transactions don’t happen quickly, so it’s never too early to lay out a roadmap for your next CRE moves.
Atlas Real Estate Advisors can assist in implementing these strategies, offering expert guidance on your CRE portfolio. With our industry expertise, Atlas Real Estate Advisors is well-positioned to help you make informed decisions and maximize returns in the coming year.
