I think the TICs are a great evolvement of our capital markets in that they allow smaller individuals to participate in deals that were traditonally the exclusive ground of institutions or ultra high net investors.
Personally, I think the commercial segment in many areas has become overvalued, but if I had a choice between owning a single investment property worth $2 Million in San Diego or a ten seperate $200K peices of TIC’s spread out across many geographic markets and real estate sectors, industrial, office, multi-family, etc., then I would definately take the latter. I think investing in commercial real estate may prove to be a relative poor performer compared to other choices, but I do think if you stick to A class properties, it will deliver a return above infation over most 10 year periods, especially when you take into consideration the tax benefits.
Like EVERY market, there are shady dealers and bad deals, and there are also good dealers and great deals. The TIC market is no different.
