While commercial real estate is nearing $21 trillion in value, uncertain times for this market could soon be on the horizon for a number of reasons. $450 billion of loans will come due in each of the next 4 years, meaning many won’t be focusing on purchasing new investments. Rising interest rates are also forcing the market to face the reality that cheap money is now gone. Another challenge for the commercial real estate market is the drop in office space demand. The pandemic brought the rise of remote work and employees are spending significantly less time in the office. Office vacancies in the San Francisco area more than doubled from before the pandemic and office prices across the country have dropped by over 17%.
While office spaces may be dropping in value, many smart investors know that commercial real estate as a whole is still very strong. A number of commercial real estate professionals are also able to save time, money, and effort by selling a business alongside their properties.
Discover new opportunities and trends in the commercial real estate market and how selling your business and property together can help you here:
Source: ChessRealtors.com
