When you invest in a commercial property, you all hope that the property value will go up and the income will continue to increase. However, you also have to plan for the downturn too.

By Karen Hanover 

While residential investors are at the mercy of the market for appreciation, commercial real estate (CRE) investors can actually make their properties appreciate regardless of market conditions.

All markets are cyclical including real estate cycles. As the old adage goes, “What goes up, must come down” and vice versa. Knowing that, if investors had a crystal ball and could time the market so that they were always buying when the market is depressed and selling when things are hot, imagine the money which could be made.

We are all hearing on the news about how the economy is slowing and the housing market is depressed and people are losing their jobs. But that generalized viewpoint is too macro. Real estate is local and it is better analyzed from a microeconomic viewpoint.