we are in the middle of it, whereas usually the developer had everything ready and retrieved his money by getting a loan, sometimes 95% depending on the rental income, they can not do so anymore because the banks offer them 40% or max 60% and the rest is difficult, so developers are stuck and some just have to many properties at their hands, the banks are very difficult in financing them, however if you want to use it yourself and have the money to do it, its still a good long term solution, just remember, do not expect a profit from the property for some time. Keep in mind it still is: location, location, location

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I agree with it. To my expectations, the rates won't go still down. So it is a better time to buy. But just consult in your location and find the better choice. Good Luck..

1-the commercial real estate market will be crashing in the next 1-2 yrs
2-until the economy picks up - there will be no one interested in renting your property, so you will be stuck with a huge mortgage payment - wait a couple of years at least

and with no guaranteed tenants, it may be hard to get approved for a commercial loan anyway - which will probably also require a huge down payments - 20-25+%

Very crucial time on real estate nowadays. If you want to sell some property then definitely it is not a good time. However if you have reasonable amount then you can purchase some properties because property prices are very low nowadays.



bayut.com

Here is why commercial real estate is likely to go down further.

It is a common practice in commercial lending to write loans with 10 year terms that have balloon payments. They're either interest only or the loan is amortized for 30 years but due in 10. In a relatively strong economy with normal credit policies these loans are easy to refinance provided the property cash flows and the owner has a good payment record.

Today, however, money is tight and cap rates are higher, so it's harder for commercial borrowers to refinance. Those who can't are going to be staring down the barrel of large balloon payments they won't be able to pay. Their loans are going to default. Some will try to unload their properties before they default putting more commercial real estate on the market, others won't and the banks will foreclose and those properties will go on the market. With financing tight those properties won't move very quickly, prices will fall.

Back to the OPs original question. If you're purchasing commercial property in which to operate an existing profitable business, and can find financing terms that make sense, this is definitely a good time to make the move. Even if prices go down in the short term, if your business is profitable you'll be able to realize gains in the long term.