Why private real estate investors are seeing another historic wealth-building window 

During the aftermath of the financial crisis, commercial real estate prices plummeted as credit markets froze and institutional investors hesitated. The investors who stepped in during those quiet years—when fear of economic collapse was widespread and most people avoided real estate entirely—captured returns that seemed impossible just years earlier.

These weren't small wins. Properties bought at steep discounts in major markets during this time delivered outsized annual returns as the economy recovered and institutional investors flooded back into real estate by 2012-2014. Industrial properties near major ports, apartment buildings in growing suburbs and retail centers in strong demographic areas that traded at massive discounts became the foundation of investment fortunes.

The approach was always the same: purchase high-quality properties when prices were low, hold them during the recovery period and profit as large investors then competed to buy the same properties—driving values back up and often well beyond pre-crisis levels.

Today's commercial real estate market is mirroring those same wealth-building conditions, but this time you have the advantage of hindsight—knowing exactly what those returns looked like. The key difference is that success now requires stronger data analysis to identify which properties can truly adapt to future market needs, plus creative financing to capitalize on these opportunities. 

While recent headlines focus on uncertainty, the data reveals a massive shift creating real opportunities. Private investors now control three-quarters of all U.S. real estate acquisitions, and competition has dramatically decreased. Erik Hanson, senior director of industrial at JLL Capital Markets, notes that “In markets where 20 investors used to compete for every deal, that number has dropped to 10.” Meaning quality assets that would once have created bidding wars are now accessible at reasonable prices.

Multifamily: breaking through previous size barriers

“Private investors can now purchase larger buildings than ever before,” reports Brian Smuckler, senior managing director of multifamily, JLL Capital Markets. The scale that was once reserved for institutions is now within reach.

Industrial: riding long-term secular trends

The industrial market remains strong due to “continuing e-commerce growth and changing consumer habits,” explains Hanson. These aren't temporary shifts—they're permanent changes in how commerce operates.

Retail: separating perception from reality

Here's where data analysis becomes critical. While sentiment surveys show economic worry, actual sales data from retail tenants shows consumers are still spending at similar or even higher levels.

Lauro Ferroni, U.S. head of Capital Markets research, explains the disconnect: “When consumer sentiment is negative, many investors panic and avoid retail properties or make lower offers. But if you look at the real sales data, you can see these properties are still generating solid income.”

John Indelli, senior director of retail at JLL Capital Markets, highlights retail's particular strength, “Limited supply and high demand drove the best leasing activity and rent growth, and the momentum is continuing in retail.”

While most investors focus on cap rates and location, sophisticated players are targeting two often-overlooked factors that can dramatically boost returns: tenant adaptability and strategic lease timing.

The smartest tenants don't wait for competitors to fail—they actively identify struggling businesses and request their spaces before bankruptcies hit. Properties housing these forward-thinking tenants offer significantly more stability and growth potential.

Retail properties with soon-to-expire leases present unique opportunities to create value.  As Indelli explains, “When a 2010 lease with extension options finally expires in 2030, you gain access to the property's true value. Savvy investors specifically target properties with older leases ending within five to seven years, as current market rents often far exceed what long-term tenants are paying.”

As leases end, investors can adjust rents to market rates, negotiate better terms or attract tenants who better align with their long-term investment goals. Finding these opportunities requires analyzing income potential, lease flexibility and repositioning potential and local market dynamics.

“With less competition and prices down about 30% from their peak, it's a really attractive time for buyers to get into the market,” is how Smuckler is characterizing today’s investment scenario. 

The institutional money will return. When it does, the pricing advantages and reduced competition will disappear. The investors who act now—with the right analysis and strategy—position themselves for the kind of returns that defined the last major opportunity. While most focus on assets valued up to $25 million, about 20% of private investors are chasing larger deals—showing how market conditions are allowing private investors to stretch for larger investment opportunities. 

Don't let another wealth-building cycle pass you by. The conditions are set. The question is whether you'll be among those who capitalize on them.

Want to make the most of today's commercial real estate landscape? Our experts share their strategies for navigating today's market conditions and identifying the opportunities that others are missing. Learn how to set your portfolio up for success in our on-demand webinar.