Category: Brandpoint Business & Finance

2023-03-21T07:01:00

(BPT) – Shopping today is a vastly different experience than it has been historically. Now, you can go to the store or shop online from the comfort of wherever. You can get free delivery, same-day delivery and even at some retailers, 15-minute delivery. Choice, speed, convenience and payment options are plentiful.

For some generations these have been game-changers, but for a massive group of shoppers with growing purchasing power, this is the expectation. Consider a third of the U.S. population is younger than Amazon, which started in 1994. For the teens and adults in this group, one-click ordering, and fast, free shipping are the default.

These expectations are shaping the future of consumerism and smart retailers are taking note. Offering shoppers a seamless experience is essential, no matter where or how they are shopping. In fact, you probably have a few favorite retailers because you know they have what you want, when you want it, and it’s a simple process to get it wherever you are located.

To embrace the future of shopping, many retailers are taking a unified commerce approach. This means they use interconnected systems and data to provide the best customer experience, including inventory, sales, e-commerce, fulfillment, returns, customer relationship management and more.

Manhattan Associates Inc., in partnership with Google Cloud and Zebra Technologies, recently announced the industry’s first real-world analysis of unified commerce. The Unified Commerce Benchmark for Specialty Retail, conducted by Incisiv, assessed 124 retailers across 11 specialty retail segments on the implementation of 286 key attributes of unified commerce.

Based on insight from real purchases, returns, and customer journeys across digital and physical channels, the study reveals the common attributes of successful retailers and the opportunities for others to improve their customer value and modernize operations.

Which companies are the best of the best in unified commerce? Fifteen emerged as overall leaders: Academy Sports + Outdoors, American Eagle Outfitters, Belk Inc., Crate & Barrel, Levi’s, Macy’s, MAC Cosmetics, Neiman Marcus, Nordstrom, Pandora, REI Co-op, Saks Fifth Avenue, Sephora, UGG and Zales.

Some other noteworthy discoveries of the research include findings made by expert secret shoppers. Here are some top shopping habits and retail trends:

Ability to change your mind

Ever placed an order only to change your mind? Some retailers offer the flexibility to modify orders post confirmation. Lifestyle apparel retailers lead the way in this capability with 50% allowing customers to modify orders post-confirmation, far outpacing the retail average (18%). Sporting goods retailers come in dead last in this area, with 0% offering this functionality. And only 15% of retailers will let shoppers change their shipping/fulfillment method post order confirmation.

Easy tracking and delivery confirmation

Wondering where your package is? About three-quarters (72%) of retailers offer customers order tracking and notifications, but plenty still lack this important feature. Athleisure retailers are the worst offenders, with just 60% providing tracking and notifications. Meanwhile, cosmetics and skincare retailers are likely to provide regular status updates — 97% will send you notifications if you’d like them.

Flexible payment options

A whopping 93% of leaders allow shoppers to Buy Now, Pay Later (BNPL), but non-leaders aren’t too far behind: 82% offer this option. Additionally, half of leaders let shoppers use mixed payment methods (e.g., pay partially with a gift card, partially with a credit card). However, most retailers — leaders or not — do not offer the ability to check out with Apple Pay or Google Pay, leaving room for improvement.

Sustainability efforts

If the environment is important to you and influences your shopping habits, you’re not alone. The study found only 20% of shoppers are satisfied with their preferred retailer’s sustainability practices and 40% of shoppers are actively looking for, and willing to spend more for, sustainable and ethically sourced products. Companies are appealing to sustainability as a growing consumer priority by publishing detailed content on sustainability practices: 87% of leaders do this, far outpacing the share of non-leaders that do the same (58%).

Consumer needs are always evolving and the most successful retailers are the ones who have the ability to keep up with these changes. By embracing unified commerce, retailers can give today’s connected consumers the information and personalized shopping experience they are increasingly demanding. Read more at RetailBenchmark.Manh.com.

2023-03-21T07:01:00

(BPT) – It seems like every day we hear about a new technology that will improve some part of our lives — from AI at work to smart devices at home to cars that remind us to stay in our lanes. As technology advances, many of these innovations are becoming more mainstream and accessible — helping to improve our lives, our work and our connections to each other.

From new satellite technologies to enhancements in video streaming, here are five tech trends to watch.

AI keeps advancing

Artificial intelligence (AI) may sound like something out of science fiction, but you’ve probably already encountered it. If you’ve asked your phone a question (and it answered) or chatted with a customer service agent on a website, you have actually used AI. Recently, tools like ChatGPT — an AI engine that anyone with a computer can try — have gained popularity for their remarkable accuracy in answering questions and offering up surprisingly natural information. As AI becomes more ubiquitous, it will change the way we work and interact with each other. Moving forward, look for AI to become more integrated into the software you use at work.

Augmented reality gets real

You’ve probably heard about the “metaverse.” Although it sounds like a cartoon universe, the metaverse is real in that it’s a digital world where people communicate using augmented reality (AR) and virtual reality (VR). Some predict the metaverse will evolve to become the next iteration of the internet. While the metaverse is likely years away from showing up in every living room, some of its features, like AR and VR, are growing more common for entertainment, education and training. For example, National 4-H, America’s largest youth development organization, is using augmented reality to help make complex topics like satellite technology more fun and engaging, as in this activity answering the question, “How Does Satellite Internet Work?” presented by HughesNet.

Streaming services go mainstream

People everywhere have become dependent on streaming video services — whether subscription-based or free. In fact, up to 80% of all internet traffic is video! While this appetite shows no sign of slowing in 2023, market dynamics could change how streaming services serve up video content to consumers. With some introducing advertising into their content and others restricting password sharing, consumers should be on the lookout for changes to their subscription services. In 2023, many viewers will likely return to traditional services like cable TV.

Rural America gets more options for high-speed internet

For decades, rural America has relied on a host of options to get connected to the internet, including DSL, fixed wireless and satellite internet. Thanks to new innovations, these services are getting better — and one is poised to change how communities beyond the reach of fiber access high-speed internet. New multipath technologies like HughesNet Fusion Plans combine satellite and wireless technologies to deliver a high-speed, reliable internet experience with reduced latency. The plans use the best connection for online activities at any given time to deliver a fast and more responsive internet experience. Equipped with more data than ever, expect multipath offerings like HughesNet Fusion Plans to grow in popularity in 2023.

Consumers get serious about cybersecurity

Nowadays, almost every aspect of our lives can be found online. From banking, to shopping, social media and work, our online footprints are larger than ever. Not surprisingly, so is the threat of cybercrime. Everyone must beware of Internet fraud, identity theft and tactics like “phishing” — where cybercriminals send emails designed to trick us into sharing personal or financial information. But with the help of new tools and technologies, such as password managers and multi-factor authentication, we can better protect ourselves from bad actors online.

From AI to AR, new technologies are improving our lives in ways we never could have imagined. Just as technology evolves, so will the ways we work and interact and collaborate with each other.

2023-03-20T00:01:00

(BPT) – Since the onset of the global pandemic there has been a paradigm shift that work is what you do, not where you do it. As workers increasingly return to traditional offices, the need to transform the space into more dynamic and collaborative business centers grows.

According to Forrester, 70% of U.S. and European companies will pivot to a hybrid work model post-pandemic. What’s more, 75% of CEOs expect their office spaces to shrink, so the space that is retained must be intentionally created with hybrid in mind.

“The problem is that while many American employers have embraced this model for their employees, they have not fully implemented collaborative strategies and the necessary technologies that help workers remain productive, creative and inspired in and out of the office setting,” said Shannon MacKay, general manager of WW Smart Collaboration Business Group, Lenovo.

Adopting the right technologies so employees can seamlessly work in the office, at home or elsewhere is key to the success of hybrid work. When done correctly, it can set an organization up for success: According to a recent Lenovo study, a majority (77%) of employees and IT decision-makers believe that productivity and collaboration tools have made or will make their business more efficient in the long run.

When done poorly it can diminish productivity, culture and ultimately, the workforce: According to the Adobe State of Work Report, 32% of workers (nearly a third) have said goodbye to an employer whose tech was a barrier to their ability to do good work — up from 22% pre-COVID.

Hybrid work will require new ways of collaborating to ensure an inclusive environment that attracts and retains top talent. This is particularly important considering in-person meetings will drop from 60% of total enterprise meetings to just 25% by 2024, according to Gartner’s 2021 Digital Worker Experience Survey.

Unfortunately, the Lenovo study shows large enterprises report an average of three unified communication/collaboration applications in use at their companies. This makes collaboration complex and a daily pain point for workers. Not only does this restrict communication, so many of the important interactions between people that build company culture and teams are lost.

“Hearing the live reactions, or impromptu exchanges going on at the end of the table is the difference between feeling like an equal citizen at a hybrid meeting and feeling like a second class one. What about if those microphones can auto-adjust to the positioning of the participants in the room and upweight the sound of those on the right of the room in the right-hand speaker to make it as realistic as possible for those at home too?” said MacKay.

Purpose-built technology like Lenovo’s new ThinkSmart One, the world’s first Windows-based completely integrated collaboration bar, anticipates the continued growth of hybrid meeting spaces as businesses strive to find innovative ways to work together in a distributed workforce. Designed to easily equip small meeting rooms, the bar offers an exceptional audio-visual through eight microphone arrays with echo and noise cancellation, 15-Watt stereo speakers and an integrated high-resolution camera with wide field of view.

There is no one-size-fits-all solution when adjusting to hybrid work. It is critical for IT leaders to reassess their technologies and best practices to ensure all participants have an equal opportunity to collaborate, share ideas and influence decisions. Companies focused on a successful ‘return to work’ plan must implement customizable technologies to make sure their office setup matches their employees’ needs.

2023-03-15T10:01:00

(BPT) – In the wake of many global changes post-pandemic, most communities are facing changed populations and economies and new, unexpected challenges.

Funding gaps have put important community projects on hold and nonprofits struggle to balance financial strain while demand grows. There’s no easy solution, but some are finding relief from unexpected sources — private companies dedicated to investing in America.

Twofold challenges

The pandemic brought sudden change to communities of all sizes across the country. Hardest-hit were small and rural communities but all experienced shifted budgets to combat COVID-19 and related issues. Meanwhile, more people decided to leave cities for suburbs and rural areas due to the growth in remote work, increasing populations and demand on local resources.

At the same time, communities continue to be tasked with doing more with less and are striving to find innovative ways to bridge funding gaps so their residents — both new and existing — can thrive. Fortunately, some private companies with ties to rural communities are stepping up and showing they care about more than business by helping fund a variety of needs.

“Our local Kubota dealers are uniquely connected to the communities they serve and are keenly aware of local challenges people face. They aren’t just serving customers, they are helping friends, family and neighbors. It’s important for us to bridge funding and resources to our local dealers so they can make a difference in their community in ways that matter most,” said Todd Stucke, Kubota North America, and Kubota Tractor Corporation’s Senior Vice President.

Bridging funding gaps

Projects put on hold. Programs cut indefinitely. Nonprofit organizations continue to face increased demand without increased budget as a result of funding gaps.

One example of a rural organization making a difference despite challenges is Homesteads for Hope, a 55-acre community farm located along the Historic Erie Canal in Rochester, New York. The nonprofit is an inclusive community farm for individuals with and without disabilities to learn, work, live and grow in nature’s classroom.

While many nonprofits in the special needs community did not survive the pandemic, Homesteads grew over the last few years and needed to take in people who had nowhere else to go. This growth required increased funding for expansion and the organization decided to look at financial awards from private national companies with local relationships.

Funding from unlikely sources

That’s right, private companies are coming to the rescue for many in the form of private grants and charitable giving.

Homesteads for Hope, for example, applied for the 2022 Kubota Hometown Proud™ grant and received $100,000 in funding which will be used to expand their Social Garden Program for those with more challenging needs and mobility-based disabilities; double their 80-plot community garden and the program’s impact; and renovate the estate home with new doors and windows to weatherproof the main program spaces for year-round use.

This project was also awarded the 2022 Kubota Community Choice Award, which is an additional grant that will enable the organization to finish the renovation of their 18th century historic barns. Together, the funding from Kubota will allow Homesteads to triple the number of people they serve and move closer toward their goal of creating an inclusive housing village, which will give 250-300 people of all abilities a place to call home. So, even though some of the communities they help might be “small,” there is nothing small about the impact of these private grants.

Continue the momentum in 2023

Need continues to grow in many rural communities, and private companies like Kubota can use their local ties to make a big impact and strengthen the fabric that makes small towns and rural counties so special. In fact, the company recently announced the third year of the Kubota Hometown Proud community grant program, which invests five $100,000 grants (with the Community Choice Award, a total of $600,000) to help local organizations make an impact in their own communities and not only survive but thrive.

“We are grateful for the important part our iconic Kubota equipment plays in farming and food production, in building and maintaining our communities, and in enhancing our overall way of life,” said Stucke. “We continue to build out our network, invest in our dealers, equipment and our employees, while also giving back to America’s small towns to share our thanks for allowing us to be part of our customers’ lives, doing more to grow together for today and well beyond.”

NO PURCHASE NECESSARY TO ENTER OR WIN. A PURCHASE WILL NOT INCREASE YOUR CHANCES OF WINNING. Open only to legal residents of the 50 United States (D.C.) 18 years and older. Void where prohibited by law. Sweepstakes begins on or about 12:00 AM CT on March 1, 2023, and ends at 11:59 PM CT on September 6, 2023. For Official Rules visit KubotaHometownProud.com.

2023-03-08T15:01:00

(BPT) – Shopping for a car is exciting, but inflation and rising interest rates are top of mind for many consumers considering a vehicle purchase.

In 2021, pandemic-related supply chain issues, including a shortage of microchips, made it difficult for car manufacturers to keep up with the demand for new vehicles and drove consumers to used cars, causing a significant increase in prices across the industry. Fortunately, according to the Consumer Price Index, the used car industry is seeing a drop in prices. According to the December 2022 report, the cost of a new car increased 8.9% over the 12-month period, while used cars and trucks decreased 8.8%.

How to find a car that fits your budget and lifestyle

While vehicle prices may be decreasing across the used car industry, rising interest rates can still have an impact on monthly payments. That’s why it’s important to take time to understand your budget before shopping for a car, and research what vehicle features and functionality will best fit your needs.

Once you have an idea of your budget and what kind of car you want, it’s time to find a financing option and determine what you can afford.

Upfront, transparent financing terms will save you time when searching for a car you can afford. CarMax, the nation’s largest used car retailer, offers pre-qualification online, allowing you to shop for a car nationwide across CarMax’s inventory with personalized financing terms, with no impact to your credit score.

Within minutes, you can get pre-qualification results with your budget in mind at the beginning of your shopping journey and feel confident you are on track to find the right car.

Unlike a credit application, the pre-qualification process uses a soft credit inquiry to build upfront financing terms across multiple lenders without impacting your credit score. Best of all, this pre-qualification capability is integrated with CarMax’s “Compare Feature,” allowing you to compare car features, monthly payments, and personalized APRs of your favorite vehicles that you’re pre-qualified for, all in one place. “We continue to elevate the used car buying experience by building tools that help improve the car shopping and financing process and make it easier and more efficient for our customers,” said Bill Nash, CEO of CarMax. “Our industry-leading online finance experience and pre-qualification capability, that leverages multiple lenders, saves customers time and provides an added layer of confidence in their journey to find their perfect vehicle that fits both their lifestyle and budget.”

Buying a used car in the current economy has its challenges, but consumers have options that can help them take control of their financing. To learn more about how you can finance your next car at a price you can afford, visit CarMax.com.

2023-03-07T08:01:00

(BPT) – The last few years have been a rollercoaster for workers in the U.S. The country saw its greatest job loss since the Great Depression and almost a year later faced the challenge of not having enough workers to fill job openings. It’s an experience experts say has changed the American workforce and workers.

As a result, 45% of employers are shifting their hiring practices and focusing more on skills and competencies versus degrees. So what jobs can help build the right kind of skills that will open more doors? Try roofing.

Whether the interest is in finding a side hustle, a fresh start or learning about different career paths, roofing helps build skills that translate across industries and sectors from building and construction to manufacturing, human resources, sales and more.

From side hustle to business owner

Erasmo “Mitos” Fuentes started his career as a teacher and got into roofing as a way to bring in extra money — but after his first day on a roof, he knew he could grow it into a full-time job. He made his way up from roofer to business owner and now works for the largest roofing manufacturer in North America.

It all started when Fuentes was purchasing roofing materials and met a representative from a manufacturer whose expertise helped open new doors. “He explained the differences between shingles without dismissing any brands; he was just there to help me,” said Fuentes, who found a mentor in his fellow roofing professional as he built his business.

Passionate about sharing his knowledge with others, Fuentes later became a trainer at GAF’s Center for the Advancement of Roofing Excellence (CARE) where he teaches courses in Spanish to roofing contractors. He and other industry experts guide more than 364,000 professionals across North America, teaching them everything in roofing — from installation to sales techniques. The courses are provided in both English and Spanish and range from live, hands-on training in centers across the country, in locations such as Minneapolis, MN, Michigan City, IN, Dallas, TX, Parsippany, NJ and more, to virtual seminars that cover the industry’s best practices and trends.

Today, Fuentes is referred to by his peers as The Maestro because of the way he’s helped and impacted others through roofing. A teacher, roofer, business owner and CARE trainer, he represents the roofing community’s passion for lifting others up.

No formal education? No problem, in roofing it’s all about the training!

Roofers are among the construction industry’s unsung heroes — they help families and communities protect what matters most, starting with the roof over their head. There’s a need for skilled roofers and demand for 19,000 new jobs is expected by 2028.

Roofing is a profession with few barriers — no degree or schooling required and national programs like GAF Roofing Academy help people of all backgrounds get into the field. The free course combines classroom and on-the-roof training in residential, commercial and solar roofing, led by expert instructors that prepare students for an entry-level position. After completing the program, graduates have access to job opportunities from thousands of certified contractors in the company’s network nationwide.

The program has trained over 2,000 graduates to date and more than 20 trainings are expected across the country in 2023 from Baltimore, MD, to Kansas City, MO, and beyond.

Roofing teaches you skills in construction — and beyond.

The roofing industry opens the door to multiple career paths — some don’t even require you to get up on a roof every day. Kelvin Thomas, for example, got his start at a GAF manufacturing facility in his hometown of Tuscaloosa, AL. He has enjoyed a 44-year career in roofing operations and held 16 different positions that helped expose him to opportunities in manufacturing, maintenance, quality, supply chain and human resources in multiple cities.

“Sometimes our qualifications don’t check all the boxes, but if you keep trying and have faith in yourself, someone will be willing to take a chance on you,” explains Thomas.

Roofing is an often-overlooked opportunity for anyone interested in starting a career with endless opportunities for professional and personal growth. It’s also a chance to make a meaningful impact on communities, helping neighbors to protect their homes and build resilience that can have a lasting impact on their families and lives.

More information about roofing programs and opportunities can be found at www.gaf.com/LearnToRoof.

2023-03-06T12:11:00

(BPT) – Consumers are more anxious about tax time than in past years, according to a new survey by OnePoll for Straight Talk Wireless — not surprising given the financial challenges so many are facing. Read on to learn practical ways to make the most out of your refund.

2023-02-28T04:01:00

(BPT) – By Peter Taunton

Owning and operating a franchise isn’t for everyone, but for ambitious, hard-working entrepreneurs, it can be a sound investment. I’ve spent more than 35 years working in the franchise and business space creating, founding and innovating the franchises of three brands to over 6,000 locations in 28 countries. Today nothing brings me more joy than to see my business partners thrive and succeed when given the opportunity.

I’m always looking for new business concepts that are relevant, scalable and profitable. That’s why when I was introduced to Nautical Bowls, I saw that with some modifications it had the potential to be a new and exciting franchise opportunity in the untapped acai market.

Without having franchise experience, Bryant and Rachel Amundson looked to me to create the necessary systems, processes and modeling to introduce Nautical Bowls as a franchise concept. In just 18 short months, we have awarded 155 territories, have 40+ locations open, with another 50 locations actively in the real estate and build-out process.

When considering a new franchise, I look for simple, effective concepts with potential growth and success. What makes a franchise opportunity successful? Here are a few key components I look for in a business concept that Nautical Bowls has in spades.

1. Low cash investment

It can be expensive to start a franchise, but Nautical Bowls is an accessible, affordable option for would-be entrepreneurs. You can get started with just a $100,000 cash investment and financing is also available. Also, the small footprint (600-1,200 square feet) makes finding a space for your franchise easy and fast. Low overhead and strong net profits make it a sound investment for first-time or seasoned owners.

2. Simple business concept

You don’t need restaurant experience to be a franchise owner. This simple business concept doesn’t require advanced culinary skills, cooktops or exhaust hoods. All you need is one full-time manager and about 15 part-time employees to operate a store. This means you can be a semi-absent owner, so you can work full time while enjoying another stream of income.

3. Product relevance

Healthy fast-casual food is a hot and rapidly growing market segment. People are actively seeking healthy meals on the go, making Nautical Bowls a strong leader in the healthy fast-casual industry.

Our acai superfood bowls are all-natural, plant-based, gluten- and dairy-free, complete meals packed with essential vitamins and nutrients. In two minutes or less, guests can walk out of the store with a customized tasty treat that travels well and can be stored at home in the freezer for later.

4. Diversity portfolio

A healthy investment portfolio is a diverse one. Adding a food franchise to your existing investments can help stabilize your portfolio while increasing your income. By owning a franchise in a rapidly growing segment of the food industry, you can reap the benefits now while securing your future.

5. Lots of territories

There are hundreds of ideal markets excited for our product! We pride ourselves in holding your hand through the entire process; financing, site selection, lease negotiations, permitting, construction and training for you and your team.

If you feel you’re an ideal Nautical Bowls franchise partner we want to hear from you! We are looking for individuals who are passionate about health and wellness with an ambitious entrepreneurial spirit. If you believe you’re a great fit, visit NauticalBowls.com/Franchise to learn how you can become part of this successful team.

2023-02-21T11:31:00

(BPT) – Consumer expectations are shifting — and many companies aren’t prepared to meet rapidly changing customer needs. With rising inflation and costs, apparel brands struggle more than ever to satisfy customers — and their bottom line — with the traditional retail model. Since its founding just over a decade ago, SHEIN has operated a unique, on-demand business model that solves for many of the issues now facing the retail industry: instead of telling customers what to wear, SHEIN responds to what they want to wear.

SHEIN is a global leader in fashion, beauty and lifestyle products that serves millions of customers in more than 150 countries — but while its peers create thousands of products in each style, SHEIN initially produces as few as 100 pieces for each SKU. How is it possible to serve a global customer base with so few items at a time? The company has built a fully digital supply chain with proprietary software that tracks customer interest and communicates market feedback with its supplier factories in real-time. This digital supply chain is the core of SHEIN’s business model, empowering the company to offer a wide range of current styles without creating excessive inventory waste.

In a traditional retail model, trend strategists and designers predict what customers will want to wear up to a year in advance and stock their shelves according to those predictions. The ever-increasing pace of trends means those predictions are further and further from actual demand by the time that season rolls around.

SHEIN’s on-demand business model offers a lower cost and lower waste solution to this problem because:

• Production is totally guided by actual demand
  • After starting with as few as 100 SKUs in a new style, SHEIN turns to algorithms to gauge real-time customer interest, empowering supplier factories to increase or stop production based directly on market demand. This data-driven test-and-learn approach improves efficiency and minimizes production waste.
• They’re e-commerce only
  • SHEIN avoids the need for overproduction typically associated with filling physical storefronts and prevents much of the waste and environmental impacts associated with running a traditional retail store. This unique on-demand business model consistently limits excess inventory to single digits while the rest of the industry struggles with 30% overstock on average.
• Their supply chain evolves with them
  • SHEIN does not own or operate any manufacturing facilities. Instead, they source from a network of third-party suppliers. They support supplier factories with physical facility enhancements, innovative technology and training.

Apparel brands looking to set themselves up for success in the future must think smaller before they think bigger: SHEIN’s small batch, on-demand production business model is the blueprint for serving tomorrow’s customers.

2023-02-17T10:21:00

(BPT) – Building savings for retirement isn’t easy, and it’s only become more difficult with rising inflation and public market volatility. According to a report by Vanguard,¹ retirement account balances decreased by 20% in 2022 alone due to economic challenges. This news may sound grim, but investment alternatives may provide some promising options to help individuals plan and save for retirement.

Recent data from a study by Bank of America shows that investors 43+ allocate about 55% of their portfolio in stocks and bonds.² However, younger investors are skeptical of traditional investments, with 73% believing that it’s not possible to achieve above-average returns by exclusively investing in stock and bonds. Instead, younger investors are allocating three times more to alternative investments and half as much to stocks and bonds.

Of those alternative investments, commercial real estate (CRE) has become an emerging option for investors looking to diversify. By investing in projects such as apartment buildings, offices or industrial buildings, investors can better insulate their portfolios and potentially find opportunities in growing markets beyond their neighborhood.

Of course, CRE has historically required a significant amount of capital that can be a barrier to entry for many. However, platforms like Cadre allow investors to have a stake in commercial properties alongside some of the world’s largest institutions like Goldman Sachs and the MacArthur Foundation.

For those rethinking their retirement savings plan and looking for more options, here are five of the potential benefits of CRE investing:

1. Accessibility

Fractional stake investments in CRE have made the asset class more accessible and lowered the minimum investment for real estate investment. While CRE has been used as an investment tool by the world’s largest institutions and the uber-wealthy to build wealth over time, new investment platforms have made CRE available to more individuals than ever before.

2. Passive income

With the ability to generate income through rent, CRE is often considered an attractive source of passive income. Investors in CRE typically benefit from quarterly dividends that may be used as an additional source of income or to reinvest and compound potential earnings over the long term.

3. Reap stable returns

In contrast with the ups and downs of the stock market, CRE tends to be relatively stable. According to Investopedia, private commercial properties outperformed the S&P 500, offering investors an average annual return of 10.3% over a 25-year period.³ CRE’s stability comes from the fact that the price of real estate isn’t tied to the stock market’s performance. Even in a volatile market, CRE provides stability.

4. Hedge against inflation

One of the attractive aspects of CRE investments is that they can weather the long-term impact of inflation. Among stocks and bonds, inflation often can directly diminish returns. Through active management, CRE investors often raise the income of their properties to keep pace with inflation and generate more attractive returns over time.

5. Leverage tax advantages

Some traditional asset class options require investors to set aside funds to pay personal income taxes, which can create a significant drag on income and retirement savings. Typically, investors in CRE are able to benefit from lower tax rates than traditional investment options, as well as depreciation deductions, interest expenses and more.

Investors that are new to CRE typically prefer to partner with professionals. Since its inception, Cadre has been helping individuals navigate their first ventures into CRE through an experienced team and easy-to-use platform. Using a high-tech/high-touch approach, the firm uses proprietary models to review thousands of data points that help novice investors invest with confidence.

For many, this is a time to rethink retirement investments. To learn more about CRE and other ways to invest in your future, visit Cadre.com.

¹ Source: Vanguard, Perspectives: DC Retirement analysis, 2023.

² Source: Bank of America, Study of Wealthy Americans, 2022.

³ Source: NCREIF, First Quarter NCREIF Indices Review, 2021.