Folks often ask themselves this question as they acquire investments or they can use that to talk themselves out of purchases.
Interest rates have settled down a bit, the overall economy seems optimistic heading into Q1 of 2026 and the general sentiment seems to be good.
There is news in our area of lower rents, higher vacancy rates and lowered values and while that is at hand and supportable, one thing I try to remind folks who have owned their investments for a few years or more is this perpective…
Pat yourself on the back for getting such high rents that continued to trend upwards year after year for a decade or longer. Those times are in the rear view mirror and we may not see those similar rents or values for a while, the adjustments have been made to most properties and purchasing at a 7% return is much more desirable than the 6% return previously targeted as an example.
Rents and values will likely stabilize and settle in. Once that happens, you will see measured sales increase and investments will pick up a bit more. For the time being, if you find an opportunity and it checks a lot of your investment boxes, let’s connect and discuss as it may not be available very long…
Enjoy your weekend.
Sean Dreznin
The Commercial Real Estate Alpha Site 
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