While commercial property continues to struggle in certain markets and residential needs a rate cut to boost activity, Fundrise, an online investment platform that mainly offers real estate investment funds, sees “continued momentum in property fundamentals.”
Fundrise claims that “being invested in the right locations and the right asset types” is helping their fund performance.
“Although inflation continued to edge downward, we saw (on average) both occupancy and rent rebound through the spring, as we successfully captured what is historically the strong leasing season in most markets.
While there can never be a guarantee of future performance, we believe real estate assets have largely returned to their more normalized historical growth rates of roughly 2% per quarter — for both residential and industrial assets as well as fixed-income strategies.”
Fundrise also operates an early-stage fund. The Fundrise Innovation Fund has been aggressively promoted on channels like CNBC. While early-stage investing can be risky, if you make the right bets, returns can be compelling.
Fundrise reports that the Innovation Fund manages $125 million on behalf of tens of thousands of investors.
While early-stage investing is not for the impatient, the Innovation Fund reports a mere 0.92% net return since inception (2022).
For their real estate funds, the challenge is competing with Money Market funds and savings accounts, with some offering over 5% returns. Fundrise’s Flagship Real Estate Fund has returned 4.72% YTD, while its Income Real Estate Fund has delivered 4.03% in returns for the first six months.