Is commercial real estate a good investment right now?

Question

Is commercial real estate a good investment right now?

Answer 1

Nope. It is the worse thing you can think of now. If you do, you will be investing on the peak of the market. Commercial real estate is the next market to blow. If you invest in residential RE now, you might be better (well, less worse) off than if you invest in CRE, IMHO.

Companies, shopping malls ... just started feeling the pain from consumers cutting back on their consumption and the risk of recession is already high. Add to that the CRE is also overbuilt and was mainly financed using very high leverage. As companies are also squeezed by increasing raw materials costs, many are already scaling back on their expenditure plans, others are closing shops (Starbucks) and many shopping mall (Steve & Barry's  is close to declare bankruptcy) and vacancies are increasing.

If anything you should short them, if not you should make sure you are far away of this market.

Answer 2

ROFL

if you have to ask may i suggest that you get a financial advisor?

Answer 3

depends on your selection

Answer 4

Right now, when interest rates are still low and real-estate prices are declining?  Yes.  

The decline in prices will eventually bottom and interest rates will rise again.  Get in before things change to your disadvantage.  

If you have enough cash on hand to weather the time between now and the time that business picks up and rents increase, you should definitely buy now.  

Pick you spots carefully.