When investing in commercial real estate, it’s important to understand each investment type and average return on investment (ROI) before deploying your capital. Whether you’re purchasing retail, office, industrial, or multi-family, determining which investment class best represents you, will establish your risk tolerance and help find the right investment that aligns with your goals.
We are currently experiencing the highest inflationary period in the last 40 years and multi-family investment owners are facing declining cash flow. A common conversation I am having with multi-family owners across the Central Valley is - what can be done to maintain the investment value of my property?
FRESNO, CA – Visintainer Group, a commercial real estate brokerage and advisory firm, based in Fresno, CA, announced it recently eclipsed a $500 million sales volume milestone. The group, formed in 2018 and specializing in commercial, multi-family, and ag real estate solutions, has successfully helped clients acquire, dispose and exchange into more than 160 properties spanning across 15 states.
Investors are keeping a sharp eye on interest rates as they are a major factor to leverage returns. Rates have rapidly climbed over the last few months, and it is expected this trend will continue through 2022 and well into 2023. At the start of the year, interest rates for investment properties were between 3.5% and 4%. In four short months, we are seeing rates inching closer to 5%.
Real estate is an attractive, and often preferred, investment alternative in a volatile market. Any property, whether it’s commercial or residential, can be a good investment opportunity. Dollar for dollar, commercial properties typically offer more financial reward than residential properties, but inherently carry more risk.
Investors have been raising the topic of inflation more frequently over the last few months as the demand for multifamily assets is surging in the Central Valley.
If there was any concern about what the investment market would look like after COVID, the year-end numbers show us commercial real estate rebounded in a big way in 2021.
This past year the multi-tenant retail investment market not only recovered from COVID-19 but bounced back in a big way.
The Central Valley has been experiencing steady and accelerated appreciation growth in the multifamily investment sector due to the strong fundamentals in the market.
