As we move through 2025, the commercial property market is responding to evolving economic conditions, particularly shifts in interest rates. While higher rates present challenges, they also unlock opportunities for savvy investors.
Firstly, understand the impact: higher borrowing costs can affect property valuations and rental yields. However, well-tenanted properties with strong lease terms provide resilience. Now is the time to scrutinize lease agreements and tenant covenants.
Secondly, consider alternative investment strategies. Value-add opportunities – properties needing refurbishment or repositioning – may offer attractive returns, albeit with higher risk. Similarly, sectors like logistics and healthcare continue to demonstrate robust demand.
Finally, remember the fundamentals: location, tenant quality, and property management remain key. A strategic, informed approach is crucial for navigating today’s commercial landscape and securing long-term success. Stay tuned for upcoming insights into specific market subsectors!
You might also be interested in
Feb 13, 2025
Deductible Property Maintenance
As property investors begin to enter the market again, it is timely to look at the deductibility rules on repairs to a property. The tax rules say that eligible repairs are deductible where there is
Nov 25, 2024
November Commercial Commentary
Recent data from CoreLogic highlights the pressure being felt in the commercial and industrial sectors. Year end sales to June indicate $5.32 billion which appears significant but when compared to the