Timing The Commercial Real Estate Market: Why Now is a Good Time to Buy!

Uncertainty is sparking through the commercial real estate market. Motivated buyers are in short supply. And those willing to step up have proven to be increasingly selective, demanding, and slow to act. Meanwhile, property owners are by no means eager to relent on prices, terms, and other strategic advantages common in the once flourishing Sellers’ Market. The result? A stagnated commercial real estate market.

Fortunately, there’s a glimmer of hope on the horizon. Interest rates are not only holding firm but likely headed for rate cuts (or the appointment of a new Federal Reserve Chairman, whichever comes first).

But while cutting interest rates is sure to spur an uptick in real estate sales, cheaper financing also leads to higher prices and cap rate compression.

All of which means if you’re an investor looking to capitalize on a potentially significant market shift – Now is the time to buy.

Still skeptical? Let’s take a closer look at why buying commercial real estate now is a wise investment:

Discounted Prices

When interest rates climbed in the wake of the pandemic-driven real estate buying frenzy, asset prices declined—falling, in some cases, by 10% to 40% from the 2022 market peak. And when interest rates fall, cap rates will rise, and these discounts go POOF!

Strong Demand in Industrial + Multi-Family Sectors

There’s no denying that the office and retail property sectors are amid a major recalibration. The shifting landscape in these arenas has seen vacancy rates rise and leasing transaction volumes slow.

But tenant demand for industrial and multi-family properties remains high. Fueled in part by a shortage of available space. This ensures low vacancy factors and consistent income.

Hedge Against Economic Volatility

Despite the current pro-business political climate, the rising costs of goods and services, the potential impact of tariffs, and uncertainty in the labor market continue to stoke recession fears.

Commercial real estate’s long-term value retention and consistent earning potential, which many investors, analysts, and economists believe significantly outperforms all other assets, can stabilize your investment portfolio amid the economy’s inevitable dips and dives.

The Smart Money Says… Buy NOW!

With assets trading below peak market prices, steady demand, and looming rate cuts, today's quiet market is likely to become tomorrow's missed opportunity. In commercial real estate, timing is everything—and your moment is now.

Opportunity Knocks

With this knowledge in hand… If you’re looking for an investment opportunity, check out this 6-unit apartment building in a thriving area, serving a niche community on the border of Beverly Hills:

THE ALCOTT APARTMENTS

6147 Alcott Street | Los Angeles, CA 90035

• ± 5,466 SF

• 6 Unit Apartment Bldg

• Ideal Mix of 1 & 2 Bedroom Units

• 12.24 GRM & 5.37% CAP Rate

Offered at: $1,675,000 | Download OM  | View Listing Details

For more details or to schedule a showing, contact:

Daniel Bahr | 323.646.5938 | daniel@core-cre.com