Commercial Real Estate Investors Embrace 'Buy and Hold' Strategy
Savvy investors looking for relatively stable places for their capital to appreciate are increasingly looking at commercial real estate. With interest rates close to zero and Treasury bills yielding next to nothing, investors are betting that the country's commercial real estate markets will eventually rebound. Many are investing in distressed commercial properties and projects and taking a 'buy and hold' strategy until the market improves. Prices in commercial real estate have shown modest gains recently according to the CCIM Institute and the Real Estate Research Corporation. Analysts have been urging investors to sell in recent months and take advantage of modest gains in their investments. However, it appears that few are heeding this advice and are slowly adding more commercial property to their portfolios. Frank Simpson, 2011 President of the CCIM Institute, is one expert urging investors to continue holding onto their investments. In a recent statement, he validated the prevailing wisdom of making careful investments and holding onto them until the market rebounds. He said, 'Though much uncertainty remains in the overall economy, transaction trends for commercial real estate continue to improve. The challenge for investors remains finding the right properties at the right price with the best return potential.' As Louisville commercial real estate experts with years of experience helping investors find properties for their businesses and long-term investment goals, we agree with Mr. Simpson. That old saying about buying at the bottom of the market and waiting until it rebounds is definitely true in the current Louisville commercial real estate market. We have been helping savvy investors find business and investment opportunities for years and have seen many commercial real estate market cycles wax and wane. Let our experience and knowledge of Louisville commercial real estate inform your investment decisions. Call us at Louisville Properties today at 502.744.9504 to learn more!