Industry experts recently reported that 2018 was excellent for non-residential property investors. This year is expected to be another successful year for commercial real estate. For this reason, real estate investors in Massachusetts have a great deal to be excited about in the coming months.
Several interest-rate hikes occurred in 2018. However, these increases did not negatively impact activity in the commercial real estate market. In fact, multi-family properties were especially in demand. Industrial properties were also popular and should remain that way in 2019.
One reason for the strength of the real estate market is the volatility of the stock market. This is because stock market volatility tends to benefit hard assets, including real estate. Another reason the commercial real estate market is strong right now is that the Federal Reserve is taking a modest and unscripted approach to the interest rate, which is mitigating their concerns. Still, it would behoove real estate investors to keep watching the political arena, with global unrest and political uncertainty having the potential to affect the real estate world.
All in all, now seems to be a wise time to invest in commercial real estate properties. Of course, commercial property transactions can inherently be complex. In addition, the challenges that an investor may encounter in one deal may be far different from those encountered in a separate deal. Fortunately, a Massachusetts attorney can help with navigating even the most complex of commercial real estate transactions and ensure that the client’s best interests are protected long term.