During the last recession, U.S. commercial real estate prices fell 35 percent more and then doubled over the next decade, providing substantial returns to patient investors. Now, as the financial impact of the COVID-19 health crisis disrupts commercial property pricing and distressed assets begin to hit the market, investors face similar circumstances and the decision of whether it makes financial sense to expand their commercial property portfolios. Like most investments, the answer can be found only after individuals assess the strengths and weaknesses of a particular property against their unique risk tolerance and short- and long-term goals.
With all the uncertainty surrounding the pandemic’s long-term impact on commercial properties and how a recovery may look, investors should be careful to work with experienced real estate professionals with deep market knowledge to evaluate deals and determine whether it is worth their time and money to buy distressed assets now or in the near future.
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 email@example.com.