Mark Khuri is the co-founder and CEO of SMK Capital Management, with over 20 years of experience as a real estate investor. We spoke about the historic market correction in commercial real estate, why certain sectors present unusually strong opportunities right now, and how passive investors can reduce risk while securing attractive returns. “The commercial real estate sector has undergone a historic market correction… pricing’s down anywhere from 20 to 30% over the last few years. Right now is a very opportune time to be getting into this space,” Mark explains. From apartments and self-storage facilities to industrial properties, he outlines where the best deals are hiding—and the red flags that can derail an investment. We explored his approach to diversification—spreading capital across multiple assets, regions, and operating partners—and why SMK invests in only 1–2% of the deals they review. As Mark puts it, “We’re really trying to… cherry pick the best deals out there… the lowest amount of risk with the highest potential upside.” Key takeaways include: Why market timing matters—and how today’s price corrections create opportunity. Passive vs. active investing—what investors gain by partnering with specialized operators. The four core asset classes Mark focuses on: mobile home parks, self-storage, multifamily, and industrial. Risk-reduction tactics—from occupancy analysis to avoiding cherry-picked sales comps. The importance of cash flow from day one in protecting against market shocks. For anyone seeking to diversify beyond stocks and bonds, this conversation offers practical criteria for spotting quality deals, negotiating better terms, and building a portfolio designed for both income and growth.
