Maintaining a portfolio of commercial properties is one of the best ways to protect your long-term wealth from inflation, but it also offers far more risk than other types of investments. Savvy investors playing the “long game” understand the importance of learning as much as they can about local market conditions and nationwide trends before making any decisions. It’s crucial to weigh the pros and cons of any potential investment or sale, and you should never forget that sometimes the best deals are those you walk away from!
When you want to make informed decisions, our team at Ferstl Valuation Services is here to help! We’ve provided trusted real estate appraisal services in Little Rock since 1967, and J.T. Ferstl, MAI, is an Arkansas-bar licensed attorney who’s available as an expert witness in eminent domain cases and other property disputes. Here are a few current market trends to consider before proceeding with any commercial real estate transaction, and we’re a phone call away when you’re ready to schedule a confidential consultation!
Retail is pivoting! Big box stores continue losing ground to online retailers, but high-end boutique retailers are poised for growth. The demand for anchored shopping centers in densely populated areas is rising, particularly in communities interested in revitalizing their city center. Many people still love to shop, and they’re willing to pay higher prices at retailers that know how to cater to their unique tastes!
Interest rates are always on the move. After a series of rate hikes, the Federal Reserve lowered the interest rate by half a point in late 2024. This suggests that inflation could finally be easing, but higher interest rates make it more difficult for people with less-than-stellar credit to borrow money. Demand for multifamily rental properties is at an all-time high, and many communities suffer from a paucity of affordable housing options for working-class families.
Remote and hybrid jobs are disappearing. The 2020 pandemic forced all companies to rethink how they did business, and one of the solutions many companies chose was allowing many of their employees to work from home. But now they’re returning to the office, and the demand for commercial real estate is on the rise!
For more information about real estate appraisal services in Little Rock or to schedule an investment consultation, contact us online or at 501-375-8317.
