How Does the Corona Virus Effect Commercial Real Estate?
Contributing writer: Thomas Schoenbeck
"The combination of lower interest rates, slowing inventory, and ready cash, makes for a trifecta for buyers."
With widespread concern over this new pandemic, there are personal and professional considerations to be made and new adjustments to our daily living. As a Realtor it is still my duty to broker sales and purchases, but I now have to look through a new lens and be more creative for my clients.
As the market heats up and stocks start taking unexpected tumbles, investors are trading down and selling off. It's an inevitable consequence of reactionary investors. This sell off leaves many with a higher degree of liquidity than they projected just a few weeks ago. The shear mass of cash generated, will leave many in the position of deciding what to do with that cash in order to fend off the tax liability.
Real Estate acquisition, in their many forms, remain a safe harbor for investors, both in growth potential and a good return on their investment. Commercial Real Estate investments are the kingpin of all investment opportunities. Interest rates as a result of the outbreak are at historic lows in the fed's attempt to kickstart a lagging economy amidst the global scare. The combination of lower interest rates, slowing inventory, and ready cash, makes for a trifecta for buyers.