Stronger, Smarter, Safer: How to Elevate Your Real Estate Portfolio

Franchisees wear many hats and are increasingly stepping into the role of real estate investors. At Image Studios, a salon suite franchise with a strong real estate component, it’s clear that many franchisees are seeking opportunities to build more robust and resilient portfolios. What once was primarily a growth strategy has evolved into a proven approach to safeguarding long-term income and preserving asset value. By investing in the right property types and the right industries, franchisees can create more resilient assets that perform consistently across economic cycles.

Here’s some guidance on how to strengthen real estate portfolios.

Capitalize on industry resilience

In the world of commercial real estate, resilience is key, and diversification is one of the most effective ways to achieve it. Industries respond differently to economic shifts. While some thrive in growth periods, others remain stable or even flourish during downturns. By investing in a variety of sectors, franchisees can reduce exposure to market volatility and strengthen the long-term health of their portfolios.

Industries tied to essential services, such as health and personal care, tend to be more resilient. Concepts like Image Studios, for example, have strong resilience with a consistent demand for beauty professionals and their services, which contributes to steady occupancy and reliable returns. These property types may also offer tax advantages that help offset taxable income, reduce liabilities, and improve cash flow. With a diversified portfolio anchored in high-demand and stable industries, franchisees can create a real estate strategy that delivers revenue even in uncertain times.

Embrace flexible paths to investment success

Today’s investors are seeking low-risk, scalable commercial real estate opportunities, but traditional models often lack the flexibility they would like. The rise of remote work during and after the Covid-19 pandemic has left Class A office and second-story spaces vacant, creating opportunities to repurpose these properties into something new.

This shift allows for creative redevelopment and broadens the range of viable investment properties beyond traditional retail. That flexibility is especially valuable to franchisees, as it enables them to enter high-traffic markets with lower overhead by converting underused spaces into franchise locations. The result is reduced build-out costs and increased speed to market.

Look for opportunities that will expand your network

Diversifying your investments doesn’t just grow your portfolio – it expands your professional network. Engaging in multiple sectors connects you to industry experts, partners, and service providers. It broadens your expertise and can lead to new growth opportunities. For franchisees, this is highly advantageous. Many franchisors have existing corporate support for marketing and operations, which gives franchisees the tools to thrive in a proven business model.

Additionally, many concepts, such as rentals and salon suites, have a no-employee model that allows the business owner to focus on property management and leasing spaces instead of staffing. Connecting with other franchisees also provides a peer support system of experienced owners and industry professionals who can share best practices, advice, and insights to help you grow as an entrepreneur.

Stacy Read is a multi-unit franchisee with Image Studios and is also a commercial property developer.