For commercial real estate investors, the good times may be over.
With a deceleration of asset appreciation coupled with a rise in interest rates…is now the time to sell? The answer is not always so simple and in this case “it depends”.
Early entry value-add investors that purchased in the last 3-5 years would probably fall into the camp of sellers. They experienced a great increase in rents, occupancy and values and the question remains of how much meat is left on the bone for them.
Meanwhile, other groups are taking a more long-term view of the marketplace and are looking to deploy capital on the basis that the United States is in a good position for the economy to steadily improve for the foreseeable future.
The decision to buy or sell is up to each individual investor, but it seems 2016 will be a crossroads where these two groups transact.