If you happen to have or will be entering into a 1031 Exchange in the near future, there is good news. There are actually commercial investment properties available that make sense!
As a commercial real estate agent, we work with several 1031 buyers recently and each one is always surprised at (1) how few properties were available that fit their investment parameters and (2) how even fewer properties made investment sense.
That is why we at Doyno Realty have outsourced to find off market properties. Investors have been snapping up these opportunities!
Although the demand for commercial real estate has remained strong, the psychological impact of a residential real estate market in freefall has made commercial property owners more realistic with their prices. As a result, commercial investment properties have been coming on the market at lower prices with higher cap rates.
Now is the time
At the same time, interest rates have continued to go down, which provides an incredible investment opportunity for investors, especially so for 1031 buyers.
There is a rare opportunity right now where price and interest rates are coming down. On properties where there are strong cash flows that are now priced at 7-8% Cap Rates, it is a great opportunity to buy a commercial investment property and lock into long term-low rate financing.
If you are fortunate enough to have a 1031 Exchange, the tax savings you are enjoying drastically increase the impact of buying at this point in the market.
If you are looking for commercial investment properties or you have a 1031 Exchange, contact me immediately. There are several opportunities available in the market right now that likely will not last very long.