Why Land Might Be a Smart Investment Right Now

Understanding the Economic Landscape

What we are seeing now bears a striking resemblance to the period following the pandemic, with uncertainty being the general sentiment across the board. Inflation continues to erode purchasing power, interest rates remain elevated, and international instability is disrupting global supply chains. While many are responding by sitting on the sidelines or shifting into cash and low-yield assets, real estate investors are looking for a more strategic approach to these changes.

Rather than chasing short-term plays, we recommend that seasoned investors re-evaluate their portfolios with a focus on durability and long-term value. In this environment, land stands out—not simply because it's tangible, but because it behaves differently from other assets when markets turn unpredictable. Atlas Real Estate Advisors has worked closely with investors to navigate these cycles before—and we've seen firsthand how land can serve as a powerful hedge in times of volatility.

Why Land Is One of the Smartest Commercial Real Estate Investment Opportunities

1. Scarcity = Stability

Land is one of the few truly finite resources. As urban development continues, the supply of desirable land decreases, naturally driving long-term appreciation. Unlike office or retail properties, raw land isn’t subject to obsolescence or tenant risk.

2. Natural Hedge Against Inflation

During inflationary periods, land has historically maintained or increased in value. Agricultural and timberland, in particular, have outpaced inflation over multi-year periods. According to the USDA, farmland values have increased an average of 6.4% annually over the past five years. U.S. Department of Commerce

This trend is further bolstered by the current administration's initiatives to revitalize domestic manufacturing and reduce reliance on foreign supply chains. These policies aim to bring manufacturing back to American soil, creating a resilient supply chain and stimulating economic growth in rural areas. 

For seasoned real estate investors, this shift presents a unique opportunity. As manufacturing facilities and related infrastructure projects emerge, demand for adjacent land— for industrial use, housing, or services—is likely to increase. Investing in land now could position portfolios to benefit from this anticipated growth.

3. Portfolio Diversification with Low Correlation

Land investments offer a unique advantage in today’s uncertain environment due to their low correlation with both equities and traditional real estate asset classes. Unlike multifamily, office, or retail properties, which rely heavily on tenant income and are vulnerable to interest rate shifts and economic cycles, land values are driven by long-term fundamentals such as scarcity, location, zoning potential, and utility. It tends to remain stable when other assets experience volatility. In past downturns—such as the 2008 financial crisis and the COVID-19 market shock—land values either held steady or declined far less than other investments. This makes land an ideal diversification tool and a form of downside protection in a broader commercial real estate portfolio. Key reasons why land behaves differently include

• No reliance on tenants or rental income
  
  
• Not valued based on cap rates or interest rates
  
  
• Long-term use potential drives appreciation
  
  
• Limited supply and high intrinsic value
  
  
• Lower exposure to daily market volatility
  
  

For investors looking to reduce systemic risk while maintaining long-term upside, land offers a rare combination of stability and strategic growth potential.

4. Income Potential

Land is not solely a passive, long-term holding investment; it also offers diverse opportunities for generating income. Some common strategies include:

• Lease to farmers or hunters
  
  
• Timber harvesting
  
  
• Solar or wind leases
  
  
• Development partnerships or entitlements
  
  
• Conservation easements and tax-advantaged strategies

As experienced commercial real estate professionals, Atlas Real Estate Advisors offers more than just transactional support—we help protect and grow our clients' portfolios strategically. By identifying land opportunities in emerging markets, we can help investors diversify beyond buildings.  In an era where economic signals are mixed at best, partnering with a firm that’s focused exclusively on commercial real estate services is more important than ever.