How to Take Advantage of Market Cycles as an Industrial Owner

As part of the commercial real estate industry, we all are aware of the importance of buying and selling at the right times. We know that when the market is low, it’s a great time to buy. And when the market is high, it’s a great time to sell.

But how do you actually take advantage of these cycles? It sounds easy enough in theory, but knowing when to buy or sell can be challenging.

Let’s look at some strategies for taking advantage of market cycles as an industrial owner:

1. Do Your Research and Track the Market Trends

It’s essential to do your research and track market trends. Knowing what happened yesterday or last week isn’t enough; you need to be able to predict what will happen tomorrow or next week.

Market Cycle Quadrants Diagram-1
This requires staying up-to-date on industry news, understanding macroeconomic forces impacting the industrial sector, and being aware of potential disruptors that could drastically alter the landscape. Doing your research allows you to make more informed decisions about when is the right time to buy or sell.
 

2. Know When You Should Buy

When it comes to buying, timing is everything. The best time to buy is usually when prices are low—while values are still depressed—and before they start trending back up again.

If you can get in early and ride out any dips in value due to short-term events like recessions or pandemics, you can benefit from a long-term appreciation in your investments over time.

Of course, there is always risk involved with investing, so proceed with caution and do your research before making any significant decisions about when or what you should buy.

 

3. Know When You Should Sell

Knowing when you should sell involves understanding where we currently are in the economic cycle and predicting where we might be headed over the next few years.

If we’re near peak values—or potentially even past peak values—it may be wise to consider selling now, while prices are still high, rather than risking further falls in value following a downswing in economic activity later on down the line.

Again, this requires doing your research ahead of time so that you can make informed decisions about whether or not it makes sense for you personally or professionally to hold onto an asset for longer versus liquidating sooner for cash flow purposes now rather than later.

Taking advantage of market cycles as an industrial owner can yield significant returns if done correctly but carries significant risks if not appropriately executed.

Being aware of trends within sectors and macroeconomic forces outside them can help increase profits by allowing owners better insight into when they should buy and sell their assets based on their individual needs and current economic conditions both inside and outside their sector(s).

With that said, always proceed cautiously and speak with a commercial advisor if needed before making any significant investment decision!

 

 

Are you ready to buy or sell your commercial property but are unsure where to start?

 

Let’s Chat.

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