Commercial Real Estate: Is Now The Right Time To Buy?
For many investors, one concern is often whether right now is a good time to buy commercial real estate. The decision to invest can be complicated even further by the changing landscape of the post-pandemic CRE market.
Where are interest rates at the current moment? Are they heading up or down? How is the economy doing? What type of commercial real estate is in the most demand or has the least risk? Would it be smarter to wait?
While there is no ‘one-size fits all’ answer to whether this is the ideal time for you to buy commercial real estate, here are a few tips to help you decide whether you should make an offer.
1. Now is Almost Always a Good Time to Buy Commercial Real Estate
If you take a minute to step back and evaluate the market, you can often find an opportunity somewhere in commercial real estate, especially if you trust your experience and stick with the things you already know.
2. Ask Yourself “Can I Afford This?”
There’s no need to feel compelled to wait for a market downturn, hoping for a “steal of a deal”. If you can afford it right now, then right now is likely a good time to buy commercial real estate property. If you can’t afford it, the decision is easy. Don’t buy it.
3. Consider the Demographics and Economy
Evaluate the local economy and demographics to determine if there’s growth in the area. Is employment high or are people having a hard time finding work? Does it seem people are moving into the area or away from it? Answers to these questions can help you determine if this is a good time to buy in any given area.
4. Is This Commercial Real Estate Property in Demand?
There’s no question the pandemic had an effect on CRE property, with some spaces seeing far more demand than others. With many companies discovering the advantages of remote employees, office spaces have taken a hit. At the other end of the spectrum, medical retail facilities are more important than ever and remain a solid investment. Manufacturing spaces and industrial facilities such as warehouses and distribution centers are on the rise.
5. Partner with a Local Commercial Real Estate Professional
One of the best ways to ensure it’s a good time to buy a piece of commercial real estate is to work closely with a local CRE professional. They have knowledge and information about the area that can be very beneficial to your investment strategy and can guide you towards an investment decision that’s in your best interest.
Bonus Tip - The Maddox Difference
While many commercial realtors are happy to sell you an undeveloped parcel of land, few are willing to guide you through the entire life cycle of commercial real estate development.
Steve Maddox and his team have 50 years of combined experience in the industry. They use this combined knowledge and expertise to help you avoid potential problems and make sure you stay compliant with local regulations.
With that kind of personalized assistance, you’re able to extract the maximum benefits possible from your commercial real estate investment.
From raw land to fully developed properties, Steve and the rest of the Maddox Companies team will be right beside you, helping guide you through every phase.
They also provide property management, allowing you to move forward and shift your attention to your next project.
Call them today at 865-522-9910. Learn more about the Maddox difference in personalized client service and how YOU can benefit from it!