Yes, you heard it right - now is the best time to invest in commercial real estate! Don’t be skeptical and miss this great business opportunity. It has been reported that most business property investors are looking forward to stable commercial real estate sales in 2011. Lenders revealed that there will be an increase of foreclosed properties this year that will help to augment a high demand for this commercial property.

There is constant expansion in the Southwest and top-rated companies and a growing number of new businesses are setting up headquarters in the area everyday. So, don’t just ignore purchasing commercial real estate - now is the best time to acquire commercial office space in the United States Southwest!

Reasons to Invest Now

Here are some good reasons why now is the best time to get commercial real estate for your company:

• Government programs such as the stimulus plan created by the federal government is providing support for an owner/occupant’s loan request with up to 90% of the loan being carried with lower fixed rates for longer terms.

• Demand for loans by the secondary market is healthy and strong which is allowing banks to offer more funding for a loan.

• The values of property have notably dropped to an historic low of 30 to 40 percent amount as compared to the prior 4 years. Since this is always subject to change, waiting any longer simply means a missed opportunity for business owners.

• Business space demands are relatively high and investing in land or office space with strong income potential is just about a sure bet for increased profits.

Get an Accurate Property Analysis

Before buying commercial real estate with the hopes of providing a business with potential revenue, it is very important to have an accurate analysis completed on the property and its’ earnings during the screening process. Some key indicators to achieve an accurate analysis could include the following items:

• As with any other property indicator, a stable cash flow means the real estate is worth considering for investment purposes. A simple calculation to get the cash flow would be to subtract the total amount of lease payments being made by a tenant from the amount being paid on the mortgage. Obviously, a negative difference means the property is losing money, not making money and therefore is not worth considering for investment purposes.

• Although gross income is one of the most basic indicators as to potential investment worth, negative gross income if combined with other possible income sources might show the property as worth the consideration of investment for the right company.

• Determining the capital rate of the property can yield an overview of its’ net income when compared to more conventional means of investment such as bonds, etc. The formula for the capital rate is achieved by dividing the sales price of the property by the net operating income it achieves.

• If at all possible, verify from the seller the actual expenses for the premises that include taxes, insurance, repairs, management fees, etc. It would be unwise an investment where there is more cash going out than coming in.

There are many other indicators that could help in deciding to purchase commercial real estate. It is best to get professional help, especially for any large dollar investment. On the other hand, don’t be a business owner who regrets a few years down the road that they didn’t take advantage of one of the best opportunities for business property. So don’t ignore purchasing the right commercial real estate – act now for tomorrow may be too late!