Point Acquisitions Blog

Investing in commercial properties can offer significant returns, but it’s important to understand how inflation can impact this investment type. We’ll talk about how inflation affects property values, rental rates, and the overall investment landscape. Whether you’re worried about the risks or interested in the potential gains, this article will provide the insights you need to make informed decisions about commercial real estate investments. In recent years, inflation rates and their impact on real estate have been significant. In 2022, commercial real estate properties experienced an average increase in value of around 8.5%, largely driven by inflationary pressures. This trend…

When picking a commercial space for your business, it’s important to keep an eye on costs. Renting in busy areas can be pricier but might bring in more customers. Make sure the space is big enough for your needs without going over budget. Newer buildings may cost more to rent but can save you money on repairs later. Don’t forget to think about extra costs like maintenance and parking. By considering all these factors, you can find a space that fits your budget and helps your business succeed. Why Do You Need To Rent A Building? There are several reasons…

As interest rates continue to rise, commercial real estate investors and professionals are left wondering how to navigate this new financial landscape. Understanding the impact of rising interest rates on commercial real estate is crucial for success in this ever-changing market. A study titled “Interest Rates and Investment: Evidence from Commercial Real Estate” by Peng and Thibodeau was published in The Journal of Real Estate Finance and Economics in 2020. The study looked at the impact of interest rates on investments in approximately 12,000 properties in different U.S. metro areas from 1997 to 2014. The researchers found that lowering interest…

Selling commercial real estate is a big deal. It’s not like buying a new gadget or a car where you pay a sales tax and move on. When it comes to selling commercial properties, there’s something called “capital gains tax” that comes into play. There’s no need to feel worried, we’re going to break it down into bite size portions. Think of it as a big brother of the regular sales tax you’re used to paying. The difference? Well, it’s all about the numbers. We’re talking significant figures here. But don’t worry, understanding how to handle, lessen, or even delay…

Commercial real estate development (CRE Development) is a process that can involve many different people and entities. It can be complex, but it is also very important for the growth of our economy. This blog post will discuss CRE development in depth. We will cover what it is, the process involved, the importance of commercial real estate development, the pros and cons, and how to get into this field yourself! What is Commercial Real Estate Development? Real estate development is when a developer takes a piece of raw land or sometimes an existing structure and creates something new. The process…

Commercial real estate depreciation can be complex and misunderstood. Different methods exist to calculate it, each impacting a property’s value differently. Tax treatment varies based on property type and location, underscoring the need for professional guidance. This article simplifies the topic, explaining depreciation calculation and its tax implications. It covers two common methods, considerations for cost evaluation, and touches on depreciation recapture upon asset sale. Seeking professional advice is key to effectively navigating these concepts, maximizing tax benefits, and seizing investment opportunities. What is commercial real estate depreciation? Commercial real estate depreciation is an important but often misunderstood tax deduction.…

If you’re thinking about investing in commercial real estate, South Florida could be a great option right now. While some areas, like retail, have seen prices drop due to more people shopping online, this could be a good chance to buy retail spaces cheaply if they’re in good locations. On the other hand, office spaces are doing well, especially in Miami, with lots of demand and rising rents, so selling these properties could be profitable. The market is expected to get even better in 2024, thanks to Florida’s strong economy and ongoing need for office and industrial spaces. Florida also…

Commercial real estate is a booming industry and for a good reason! It can be a very lucrative investment. However, if you’re new to the world of commercial real estate, it can be confusing to know where to start. To buy commercial real estate effectively involves a series of strategic steps designed to maximize investment potential while minimizing risk. To start, you must understanding what constitutes commercial real estate. This category encompasses properties used for business purposes, including retail spaces, offices, warehouses, apartments, and more, each offering different benefits such as revenue generation through rent or business operations. The process…

When buying or selling commercial property, you need to be aware of certain commercial real estate closing costs. These costs add up quickly, so it is important to understand what they are and how they will impact your transaction. At Point Acquisitions, we buy commercial real estate in any condition. If you are selling commercial real estate, contact us before taking the steps in this article, as some or all of these costs can be avoided! In this blog post, we will discuss the most common commercial closing costs associated with commercial real estate transactions for sellers. We’ll also advise…