In 2023, the commercial real estate market is worth nearly $21 trillion. However, rough waters ahead could lead to some serious consequences. Rising rates have lowered overall commercial property prices, and $450 billion in loans will come due in the next four years. Employees are spending less time in the office now due to the pandemic, and more changes are on the horizon. Despite this, commercial real estate remains strong in the eyes of institutional investors.
These strengths are evident in real estate hot spots like New York. The Empire State contains 2,053,393 commercial properties in categories like retail, multifamily, special purpose, office, hospitality, industrial, and land. There is a lot of value in selling properties and their businesses together, as many real estate professionals have recently been emphasizing. It saves time, money and effort, making it a smart move when dealing with this complex market.
Although there are several pros to selling and bundling property in this way, there are pitfalls that have definitely become a challenge. Market uncertainty is inevitable, rising interest rates are expected, and shifts in portfolio values are unpredictable. The trends are currently indiciating the potential for great opportunity in the real estate sector in the coming years. However, it is imperative to stay on top of this information as a responsible investor.
Learn more about Orange County NY commercial real estate and beyond in the infographic below: