Commercial real estate investments are a great way to diversify your investment portfolio while giving you more control over your investment than stocks or mutual funds. Likewise, they provide a stable income stream typically higher than residential real estate. If you’ve decided to start investing in commercial real estate, you may be wondering when is the best time to invest. Continue reading to find out!
State of the Economy
The commercial real estate economy is highly impacted by the economy, so educating yourself on the different phases will help you determine the right time to buy. If you’re able to purchase during a recession stage, it’s the best phase to do so. The mass of vacancies means that the supply outweighs demand; therefore, driving prices down. The downside is that it is much more difficult to make a secure financial decision during this time. Prices are still relatively reasonable during the recovery stage. The expansion stage is the worst time to be a buyer since demand outweighs supply leading to high prices. Following this period is the contraction stage, where prices begin to drop again. Financing may be difficult during this time but it is still considered an ideal time to buy.
The seasonality of the market actually has quite an impact on the price you are paying for a property. Spring and Summer are when you will see the best deals on the market. These months often see higher tenant activity leading to more businesses willing to relocate. Similarly, Spring and Summer are the most efficient time to move a business due to weather conditions. These factors cause the warmer months to be the best time to invest!
Investment in Southeastern, NC
Since it’s Spring and Summer is right around the corner, this could be the perfect time for you to invest! The growth in the Southeastern North Carolina area provides many diverse opportunities for the perfect investment property with strong returns. Market trends show that this area is one of the fastest-growing in the country. There has been an influx of people migrating to the coast to take advantage of the great lifestyle and economic opportunities here. Let us help you find the perfect place to invest in your next commercial property! Contact us today.