Over the course of the past few years, the world has experienced a global health pandemic and an economic downturn, the effects of which linger today. And while many businesses have struggled to survive those challenges, still others not only weathered the storm, but thrived through it.
Change and adversity are inevitable, but it’s often during difficult times that growth opportunities emerge. This has been the case for many of our clients recently.
At APPRO Development and CERRON Commercial Properties, we have clients whose businesses have ridden the waves of change and adjusted to a new normal. And they’re thriving. In fact, they’re doing so well that they need more space! And despite increased interest rates and other challenges, they’re taking action to expand their businesses.
If you find yourself in a similar position, you’ve come to the right place. Here’s why now is the time to seize the growth opportunities available and invest in commercial real estate for your growing business.
Once inflation is brought back under control, it’s likely we’ll see interest rates decreasing toward pre-pandemic levels. For now, interest rates are projected to remain steady for the foreseeable future. Since interest rates will likely stay where they are for a while, and construction costs have stabilized, it’s a great time to take action.
In fact, in our work at APPRO and CERRON, we’re seeing a trend of clients taking larger equity positions, showcasing their commitment to expansion and long-term success.
What’s more, lenders typically offer their lowest interest rates on business loans (especially for small businesses promoting SBA backed loans), as well as flexible financing options. This means that obtaining a reasonable loan for your business’ growth plans is still a viable option.
Construction Costs Are Stabilizing
During the pandemic, construction costs skyrocketed to new highs. But now, prices for many construction materials have started to stabilize (or even drop, in some cases). This is due, in part, to improved supply chains, as well as the declining costs of diesel fuel and steel mill products.
And while construction costs generally remain above pre-pandemic levels, the stabilization we’re seeing will make constructing a new building more achievable for many businesses, leading to increased demand for new construction of commercial buildings.
If you’ve been on the fence about building a new construction or adding on to your existing facility, it could be time to take the plunge.
Not sure whether you should lease, buy, or build? Our recent blog will guide you through the pros and cons to make the right choice for your needs and budget or simply fill out the form below to download our complimentary guide!
Demand for Commercial Properties Is Increasing
Commercial property demand is rising as well, and a big contributor to that increase is growth in the manufacturing sector.
After many years of stagnation, U.S. industrial production has begun to grow again, in part due to an increased interest in deglobalization. To mitigate supply chain vulnerabilities and other risks, the U.S. is investing in rebuilding and modernizing our industrial production. As a result, demand for industrial and commercial real estate is rising.
In addition, overall unemployment in the U.S. is down. In fact, earlier this year, it was at its lowest in more than 50 years. Companies that are thriving right now need more space in order to expand their businesses, and aren’t being deterred by higher interest rates and pricing.
So if your business is growing, and you’re considering investing in commercial property, now is the time to act.
Now Is the Time To Act, and APPRO and CERRON Are Here To Help
Are you ready to take the next step in your business growth?
As the tides shift in the commercial property industry, the teams at Appro Development and CERRON Commercial Properties are ready to guide your business toward a future filled with potential. Growth opportunities abound — interest rates are stable, construction costs have plateaued, and the manufacturing sector is flourishing. Now is the time to take action.
Contact us to embark on your journey of expansion today.