Commercial Real Estate Uncertainties Warrant Renewed Attention
A recent Forbes article – Three Ways Investors Can Increase Agility In Uncertain Commercial Real Estate Markets – made some highly cogent points about ways commercial real estate owners, managers and investors can address the continuing uncertainty in today’s commercial property marketplace.
Here are a couple of its most salient points and suggestions:
- “There’s one thing most everyone can agree on: The real estate industry has become the poster child for uncertainty and anxiety.”
- “(With tenant demand for shorter-term leases), short-term leases may alter financial forecasting and real estate valuation, immediate increases in net operating income will outweigh the risk of carrying the vacant space.”
- ” …offering free space can end up being a valuable alternative when diversifying the tenant mixes and increase the overall experience of the property.”
Get Uncle Sam to Pitch In As Well
Tax savings – whether from the faster depreciation, and bonus depreciation, made possible with a well-prepared cost segregation study and/or reduced local property taxes with reassessed local property valuations can boost cash flow to help absorb weaker occupancy levels and bolster property values under pressure with shorter-term leases.
To find out in 30 seconds if you have a property tax credit for your commercial real estate on a risk-free No Savings, No Fee basis, click here.