If you are an investor looking to secure or build a real estate investment portfolio you are likely tracking how commercial real estate investment properties are sizing up to the rest. I have always been a firm believer in the “location, location, location” tactic when securing real estate, especially when considering commercial investments. My 14 years of experience in the Nevada County and Placer County real estate industries has proven this tactic to be true. We managed numerous commercial properties and the vacancy rates strongly depend on the location of the commercial building. Some of our commercial properties have had 0% vacancy rate since we acquired them, due to their high-demand locations. Others we can’t seem to fill.
Regardless of location, however, commercial real estate investments continue to hold a strong place in the market even during volatile times.
Marcus & Millichap’s blog post, Yield-Curve Investor Reiterates Stability Of Commercial Real Estate, confirms that commercial investments are a stable option: “The recent financial market swings reiterate both the stability of commercial real estate and the attractive yields offered by the sector. In addition, the exceptionally low interest rates currently available provide a strong levered yield premium, with the average combined commercial real estate cap rate of 6.3 percent exceeding the 10-year Treasury by 480 basis points, one of the widest margins this cycle.”
Part of our services include real estate investment acquisition consulting services. We can help determine the financials implications and best markets to invest in. Call us today to be successful in todays commercial real estate and property management markets.
Continue reading Marcus & Millichap’s blog post below or click on the image to go to their website.
