There are several key reasons why now is an excellent time to invest in commercial real estate.
Property prices have bottomed. As with the residential market, commercial property values seem to have bottomed out. In most markets today, a typical mortgage payment is equal to or less than a rent or lease payment. At today’s CRE prices, you can retain more of your cash flow or acquire much more real estate for your investment than you might have just five years ago – all while investing in your future growth.
Abundant inventory. In addition, commercial properties are currently available in abundance in most markets, providing an excellent opportunity to secure a prime location at a very reasonable price.
Rates at historic lows. While business property rates will never be quite as low as those for residential properties, they are nevertheless mimicking the housing market with rates that are now at historic lows for commercial real estate. Your CRE loan today will cost you significantly less than it would have five years ago. As the economy and real estate markets continue to recover, rates will only go up.
Flexible terms and payments. Some lenders today – particularly those specializing in dental practice financing – offer flexible loan packages that may include up to 100% financing with payment terms extending up to 25 years.