Even though the year is nearly over, 2018 could still be a stellar year if you’re looking to invest in commercial real estate.
It’s been a busy year for commercial realtors as the market has remained positive.
With just a few months left to go, there’s still time to take advantage of the favorable real estate climate over the past year and a half by investing in some of the commercial listings currently available.
Good Buys in the Right Sectors
The middle of 2018 marked the longest period of expansion in commercial real estate in U.S. history.
Although that expansion is finally slowing down and some markets are becoming saturated, there are still good buys out there for smart investors:
- While job growth has slowed some and vacancy rates have remained the same, office space especially in suburban markets is still growing.
- Industrial commercial real estate listings have continued to break records through the middle of this year, with industrial remaining one of the best investment sectors right now.
- Slowed wage growth is negatively affecting both retail and multi-family housing; however, there have been record retail closings this year and the financial climate is stressing some multi-family markets where aggressive construction is taking place. On the other hand, experts feel this could be a benefit to multi-family in the long run as confidence in buying is reduced.
The Interest Rates Are Still Favorable
While they may not be quite as favorable as they were this time last year, commercial realtors are still seeing some great interest rates.
Growth is on the slow slide downward, so now is the time to take advantage of great rates before they start to rise considerably once more.
There are still plenty of attractive commercial real estate listings available in most markets, especially in those sectors that are still seeing some growth.
Tax Time Benefits
There is no arguing the fact that all commercial real estate purchases bring with them certain benefits at tax time.
If you want to get in on these benefits this year, now is the time to do it.
Get your investing done before the new year so you can claim some impressive deductions on your 2018 taxes.
Take Advantage Before It’s Too Late
Lastly, remember these are record-breaking times in terms of commercial growth.
Even though the slowing has been gradual, forecasters do warn that the time is probably sooner rather than later that we'll see a significant change.
Anyone who wants to take advantage of today’s slightly waning but still favorable market and financial conditions needs to do so soon or lose out.
Things may stay good for some time; however, if this expansion slows quickly and the market changes drastically, there is no telling when we will see conditions like these again.