Real estate investing has taken a hit, but not all markets are the same

financialpost.com:

The sometimes striking oversimplification of investing themes and sectors is nowhere more prevalent than in the column inches and bandwidth devoted to real estate, which is often depicted as some kind of monolithic investment that is uniform across all geographies, sectors and investors.

But peel the onion’s layers back and you’ll see that real estate investing is multifaceted, diverse and begging for specific and detailed analysis. Investors willing to apply thoughtful work across the real estate spectrum will discover that it is not only possible that various types of real estate across multiple jurisdictions can perform very differently amid varying market conditions, but likely.

One of the oldest adages in real estate investing is that “real estate is local.” This saying emphasizes that markets significantly vary across different geographies and jurisdictions. These variations apply not only to populations, culture and trends, but also to politics at national, regional and municipal levels.

A stick-built, multifamily rental project might be just what’s needed at a point in time in Lethbridge, Alta., or Gananoque, Ont., but a 50-storey condo project might be more appropriate in Vancouver or Montreal. A data centre project or Amazon.com Inc. depot might work in Toronto or Halifax, but a standalone grocery-anchored plaza could be what is called for in Uxbridge, Ont., or Sydney, N.S.

Real estate varies by geography and jurisdiction, as well as by type. The four main categories of real estate are residential, commercial, industrial and office. With the exception of residential — which, while not always universally “hot,” will never be too cool for too long — real estate assets can go through cycles, sometimes for years,