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When is the optimal time to buy commercial real estate?

On Behalf of | Jan 6, 2023 | Real Estate |

Of the many possible ways to achieve the American dream, owning commercial real estate is often one of the more lucrative ones. Indeed, according to Coldwell Banker, commercial real estate usually comes with consistent returns, growth potential and passive income. Knowing when to buy, though, can be critical.

While determining the perfect time to purchase commercial real estate can be akin to reading tea leaves, there are certain factors you can consider. Here are a few of them.

The market

Whether you are buying a small store or a multi-unit building, you want to get a good deal. Much of your buying power, of course, depends on the market. Consequently, when you are looking for the right time to buy, it is beneficial to look at property values. If they are stagnant or declining, you might even end up with a bargain.

Your financial position

Even if you find a stellar deal on an ideal property, you might not be in a position to buy if your financial statements are wanting. Therefore, to position yourself or your organization to compete when the time is right, it is important to evaluate your financial circumstances and goals. Even if you must wait to buy, you can use the interim period to boost your financial position.

Your gut instinct

Sometimes, succeeding with a commercial real estate purchase requires listening to your gut. If you are new to the game, though, you should not be afraid to ask for help. Indeed, a professional broker can help you find the right space for the right price. An experienced real estate attorney also can keep you from making a mistake.

Ultimately, regardless of when you decide to buy commercial real estate, it is difficult to overstate the importance of both preparation and planning.