Nonresidential property sales reached closed to record levels last year, with private fund managers completing some of the largest deals. Experts say that 2019 should also see strong sales, especially with the interest rates remaining low. This is excellent news for Massachusetts investors who are interested in purchasing commercial real estate in the Bay State this year.
The overall value of nonresidential properties sold for $2.5 million and above across the United States in 2018 exceeded $562 billion. This figure is 15 percent higher than that for 2017. In addition, it was just a few billion dollars under the record of $569 billion that was reached in 2015.
Investors may also be encouraged to learn that the prices of properties have skyrocketed by over 6 percent each year. As a result, they are 30 percent above the prices witnessed in 2007. Prices may have gone even higher had the fear of skyrocketing interest rates not caused buyers to stay out of the market. Still, since the Federal Reserve acknowledged recently that it is not planning to increase the rates, this may drive more market growth in the months ahead.
The market for commercial real estate has no doubt been on an upward trajectory recently. Therefore, investors naturally may be looking forward to buying properties and generating income from them this year in Massachusetts. The process of purchasing a commercial property, however, can be complex, as it features many moving parts. Fortunately, an attorney can walk investors through the process, making sure that they make personally favorable decisions from start to finish.