How Can a Slowing Economy Affect Commercial Real Estate Investment?

Posted on May 15, 2019

As the longest global expansion in history continues past 10 years, it is not unreasonable to consider or speculate when the next pullback will occur.

On the one hand, signs of an economic slowdown have caused the Fed to hold off on interest rate hikes in 2019, which could further extend 2018’s record-breaking commercial real estate deal activity without significant impact on deal value. Therefore, investors still have time in 2019 to prepare their real estate portfolios for potentially slower economic growth in the future. This may bode well for property owners looking to sell long-held property for a profit or replace outdated tenants and/or investors seeking to diversify their portfolios and grow income through investments in s new asset class or geographic locations.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.

 

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