Why You Should Invest in Commercial Real Estate Now
If you've been contemplating getting your feet wet with investing in a commercial property but just haven't pulled the trigger, now is the time to do it.
We are currently living through one of the most attractive commercial real estate markets for investors. Taking advantage of some of the investment properties available today will likely yield you a return that is much better than some fixed income alternatives. When that return is paired with a strong stream of cash flow and appreciation of the property, investing in today's commercial real estate market is considered to be a very prudent decision.
Here are some reasons why the current commercial real estate market is so attractive to investors:
Interest Rates Continue to Remain Low
As of February 2015, the Prime Rate (the rate that many banks use to price commercial loans) still continues to be 3.25 percent, which is a historically low level. LIBOR, another interest rate index that is often factored into pricing commercial loans, is also hovering at one of the lowest levels it has been in decades. While no one has a crystal ball to predict what interest rates are going to do in the future, we can feel fairly certain that interest rates have no where else to go but up. Financing a property at these historically low levels can allow you to get more for your money and make a smarter investment.
High Demand for Rentals
It makes sense that smart real estate investors follow the jobs and people. With the population and job growth that New York City has consistently offered, there is always going to be a demand for real estate rentals in the city, whether it be for a multifamily property or office space.
If you're in tune with the latest commercial real estate trends in New York, you'll know that telecommuting is on the rise. In an effort to cut costs, more companies are allowing employees to work from home, which causes these companies to have less of a need for office space. For this reason, we'll likely see an increased demand for residential rental properties in 2015.
Investors Are Armed With More Information to Make Smarter Purchases
A plethora of resources via the Internet are available to investors to help them more accurately determine how much a property is worth before making a purchase decision. Having this access to real-time data of a property's performance can provide a clearer picture of the risk and return the investor would be getting before making the purchase.
Avant Capital Partners can help you take advantage of the incredible opportunities available in today's commercial real estate market. Andrew Jubelt, a principal at Avant Capital Partners, is a successful investor himself, owning and operating several commercial and residential properties, which include more than 10,000 senior housing and multifamily units in the area. His extensive knowledge of New York's one-of-a-kind real estate market and financing expertise allow him to serve as a valuable partner for anyone considering investing in commercial real estate.
Are you interested in learning more about why now is the time to invest in commercial real estate? Start the process by contacting Andrew Jubelt at 212-231-9779 or email him at ajubelt@avant-capital.com. Taking advantage of the favorable conditions of today's market will go a long way in helping you to secure a smart investment.
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