Commercial property values may be peaking
First time since the Great Recession that I’ve heard multiple commercial real estate brokers broach the possibility of an upcoming real estate “crash”. In my opinion, crash is too harsh, but with rising interest rates, cap rates (price divided by net income) will also go up, resulting in property values going down. A number of brokers feel we are at the peak, and if you have any thoughts of selling in the next few years, do so now before we slide down the other side of the curve.