The importance of geographic diversification.
Humphreys Real Estate Income Fund (HREIF) understands the importance of geographic diversification. As we look across the United States, not every city is created equally and different cities respond to economic events in different ways. Over the past couple of years, our team has identified markets that have upward economic growth potential and quantifiable factors that drive economic growth.
HREIF has focused investment on markets historically labeled as second and third tier, due to their stature compared to the primary markets of Los Angeles, New York, Chicago, etc. We found that markets like Dallas-Fort Worth, Denver, Charlotte, Raleigh-Durham, Phoenix, Orlando, and Atlanta have upward growth potential that has been on display in recent years.
To continue to create growth and yield, it is important to be in the right markets while maintaining proper diversification across those markets, avoiding over concentration in any given market.
Hear from Grant Humphreys, President of Humphreys Capital, about why geographic diversification is important in this economic environment in this video.
Market Highlight: Kansas City
According to Marcus and Millichap, retail development in Kansas City will return to a pattern of inventory growth in Q4 of 2022, with approximately 820,000 square feet of space set to be completed.
Through established relationships with developers in opportunistic markets like Kansas City, we work to target new developments to create and realize value for investors.
Sector Highlight: Retail
U.S. retail is on the rise. In Q2, vacancy fell to 6.1%, the lowest level in at least 15 years, while asking rents for U.S. shopping centers were 16% higher than five years ago, according to Cushman Wakefield.
Additionally, for the first time in almost five years, the U.S. has more new store openings than closures!