Value in commercial real estate is at a high, and it’s allowing property owners to have the opportunity to refinance properties in order to invest in ventures elsewhere.
Interest rates are low now but are forecasted to rise in 2017, so this is a great time to refinance if an opportunity to place capital in another investment arises. Also, many are avoiding selling property all out with the percent of capital gains being so high.
“Taking advantage of low rates to drive cash flow and returns makes a lot of sense,” said Brian P. Ward, president of Capital Markets: Americas for Colliers International in Seattle. Overall, the decision to sell out or refinance a property is completely circumstantial depending on the owner’s intention of duration in investment.