Beyond "Core": Opportunities and Risks of Investments in Class B Locations

Prof. Dr. Stephan Bone-Winkel

Many real estate investors will look only at so-called core properties in Class A locations in major cities. Of course, these investors often equate a low initial rate of return with a particular level of security. However, it may also be the case that they are simply confusing “low-risk” with “expensive”. Such an approach by investors also means that other types of properties and locations are generally overlooked. This is surprising, because investments of this type could contribute substantially to risk diversification and often offer higher initial rates of return and greater market potential.