Despite the subprime crisis in the residential market, the commercial market has been holding strong. The key to the continued success of the commercial market is that a commercial property makes cash for it's investor, which enables the mortgage to continually get paid from those proceeds. This differs from a residential property, which is dependent upon the valuation of the property. In Florida, it is said that housing values are estimated to fall potentially another 40% in some areas off the current values. For people that made housing purchases between 2005 and 2007, when the values were at their peak, it is understandable why the foreclosure rate is at it's highest level in the last century.
However, in the commercial real estate market, this is not the case. Property owners continue to make cash on their cash investments, and the property values are holding strong as a result. The lack of credit has put a slight dip into the activity of the market as the banks are not lending as easily. If you are able to qualify for a loan in this credit crunch, an investment in the commercial market still makes a great deal of sense. Not to mention the capital gains, which is the greatest asset of the property.
Contact me today to find a commercial investment property for you.
Harris W. Gilbert
The Keyes Company
(786) 371-4431
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