What is Commercial Real Estate Appreciation?
You may already be familiar with the concept of cash flow and the important role it plays in helping identify attractive commercial real estate investment opportunities. Positive cash flow means earning money now and on an ongoing basis throughout the life of your investment.
But while a steady cash flow sounds wonderful (it is) and may get the bulk of our attention, it’s not the only factor that you should consider. When evaluating investment properties, another critical factor investors must understand is appreciation — or the profit you can earn at the end of your investment upon disposition of the property.
In this article, we’ll dive further into what commercial real estate appreciation is, what influences it, and how to estimate it.
Comments