OfflineTexas has seen an 8.6% drop in the values of commercial properties. This is a continual spiral that has been started and the 8.6% drop was just in April. What does this mean to you? Just as DDowd wrote before: Commercial property values are going down but the rents are remaining the same. This means that the cap rate of properties such in Texas are getting greater and greater. In different terms this means that commercial properties are easier to cash flow. The decrease in value does mean though that it will be a little harder to get financing in these areas.
Not only is this the time for single family residences but this is the time for commercial properties as well.
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Thanks for the information and insight on commercial properties. I believe there are several states that may have some great deals available. If the deal makes sense it may be a good time to diversify into some small commercial deals. The benefit of most commercial rentals is the ability to have your commercial teneants sign a triple net lease. That way the expenses are more manageable and predictable. Believe and achieve!
- Joe
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you got have a well known chain or something else to anchor to attract tenants to commercial property area. Is it mostly stripmall's that is experiencing 8.6% drop in Tx?
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