The Business Journal

Investors are keeping a sharp eye on interest rates as they are a major factor to leverage returns. Rates have rapidly climbed over the last few months, and it is expected this trend will continue through 2022 and well into 2023. At the start of the year, interest rates for investment properties were between 3.5% and 4%. In four short months, we are seeing rates inching closer to 5%.

The Business Journal

Real estate is an attractive, and often preferred, investment alternative in a volatile market. Any property, whether it’s commercial or residential, can be a good investment opportunity. Dollar for dollar, commercial properties typically offer more financial reward than residential properties, but inherently carry more risk.

The Central Valley has been experiencing steady and accelerated appreciation growth in the multifamily investment sector due to the strong fundamentals in the market.

This past year the multi-tenant retail investment market not only recovered from COVID-19 but bounced back in a big way.

Investors have been raising the topic of inflation more frequently over the last few months as the demand for multifamily assets is surging in the Central Valley.

If there was any concern about what the investment market would look like after COVID, the year-end numbers show us commercial real estate rebounded in a big way in 2021.