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For Estate Planning, Estate Administration And Disputes

When is a good time to buy and sell commercial real estate?

On Behalf of | May 24, 2023 | Commercial Real Estate |

There are many ways to make money off your commercial real estate investment. Some investors develop their property and earn revenue by renting it to businesses. Others buy a property and then sell it to companies and other investors at a higher price.

When it comes to buying and selling commercial real estate, you usually have to consider several factors if you want to enhance your odds of success. Timing is one of these factors.

When to buy

Understanding the effects of economic trends on your every move is generally vital to successful investing. For example, the value of many properties tend to go down during economic recessions or while the economy is recovering from a recent downturn. Therefore, buying commercial real estate at a lower price is usually possible during these periods.

However, remember that people also tend to keep a tighter leash on their money during these times. As a result, you might have a more challenging time securing third-party financing for your investment.

When to sell

As the economy stabilizes, production and employment also tend to grow. These trends encourage businesses to spend more and expand, increasing demand for commercial real estate. Therefore, renting out or selling your property for a higher price is usually possible when the economy is strong.

Economic trends can significantly impact your success as an investor, and so can commercial real estate laws. Understanding these yourself or working with a professional will help you find and secure potentially profitable investments.