Why Buy Now?

So why is this a good time to buy commercial real estate? Well, would you rather buy at the top of the market or at the bottom?

Most places around the country are reporting that rents and sale prices have remained about the same for the last year. This follows large drops in rents and sale prices from 2009-2012. Most economists agree it is unlikely that prices will drop significantly more in the near future.

Once rents have stabilized after a declining market, the normal business cycle sees a gradual increase in rents, with the pace of increase gradually picking up over time. Look what we have been through in the last few years. If you like buying at or near the bottom of the market cycle, doesn’t it make sense to be entering the buying market now?

Besides buying at the bottom of the business cycle, is there another reason to buy now? Well, look at historic interest rates for commercial mortgages. Have you ever seen rates lower than they are today? Locking in rates now can lead to greater cash-on-cash returns for years to come. Lower rates mean lower Annual Debt Service. And lower ADS means less risk to own.

The bottom line is, this is a great time to buy. Call your SEC Counselor to discuss your investment objectives. They can help you create a strategy to put you on the road to economic security. Isn’t that really what you want?

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