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5 Trends Real Estate Billionaires Love

By Nell McPherson - Jun 29, 2022 at 8:10AM
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5 Trends Real Estate Billionaires Love

Learn from the best

If you've recently begun exploring real estate investing, you might've been surprised by the number of options available. From investing directly through rental properties or commercial space to investing via real estate investment trusts (REITs) in any sector from retail and industrial to offices and hotels, narrowing it all down can be a bit overwhelming.

Fortunately, plenty of people have made their fortunes in real estate. That being the case, let's look at how a few real estate billionaires are investing, so you can apply their wisdom to your own portfolio.

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A roulette wheel and casino worker.

1. Gaming

Real estate is all fun and games for tycoon Neil Bluhm ($5.1 billion net worth). He holds ownership in sports teams and online gaming and is a major investor in gaming real estate. He owns casinos in several cities, and he's not alone in anticipating renewed interest in casinos as the pandemic wanes.

Atlantic City casinos have spent millions on redesigns, including hotel room makeovers, gambling floor remodels, and new restaurants and swimming pools, to prepare for a busy summer. So, it looks like Mr. Bluhm is most likely onto something here.

ALSO READ: Investing in Casino Stocks

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Person shopping in a clothing store.

2. Luxury Retail

Continuing his affinity for the things people enjoy in life over the necessities, Mr. Bluhm also invests in luxury retail and owns a few of these properties in Chicago that have done quite well. And just as with gaming, he is far from alone in banking on the future of luxury retail.

In 2007, billionaire José Neves saw e-commerce as the future of luxury retail. So, he founded Farfetch as a global online luxury marketplace. But his company is now investing $200 million in Neiman Marcus, with plans to use technology to make in-person shopping simpler and more immersive than ever.

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Several people having a meeting at a long table.

3. Office space

The remote-work explosion ushered in by the pandemic has caused many investors concern over the future of office space. But while some companies are allowing employees to work permanently from home, many prefer at least a hybrid arrangement, where employees come in a few days a week, and others are bringing their employees back to the office full time.

Donald Bren ($16 billion net worth), the wealthiest real estate baron in America, has a portfolio that currently includes more than 560 office buildings, mainly in Southern California and Manhattan. That seems to suggest he's still feeling confident about the future of office space.

ALSO READ: Investing in Office REITs

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Apartment buildings with trees and flowers along a city sidewalk.

4. Multifamily

Of course, all those office workers need somewhere to live, and Mr. Bren has multifamily investing heavy on his radar, too. With over 125 apartment complexes in his portfolio, he seems confident in the bright future of this real estate sector as well.

It's been a tough housing market for a while, and rising interest rates aren't helping. So, more would-be homeowners are becoming renters. And with a limited supply of rental properties to go around, rent is way up nationwide.

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People working in a warehouse.

5. Industrial

Industrial was the rare commercial real estate sector that actually thrived during the pandemic as e-commerce exploded. And it shows no sign of slowing down now. This is probably no surprise to real estate investor Leonard Stern ($6.2 billion net worth). His Hartz Mountain Industries portfolio consists primarily of warehouses in Atlanta, Baltimore, New Jersey, and Charlotte, North Carolina.

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Person in suit at laptop smiling while on the phone.

Don't reinvent the wheel

Whether you're looking to get started in real estate investing or just want to change things up a bit in your current portfolio, taking a peek at the papers of the smartest kids in class is unlikely to steer you wrong. Sure, you'll still want to do your own research on the companies you're interested in and make sure their leadership, values, and goals are in alignment with yours. But looking at the areas where the most successful investors are thriving right now can get you pointed in the right direction.

The Motley Fool has a disclosure policy.

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