Q4 BUYER DEMAND
IS BUILDING
A Key Driver: Cost Segregation
One reason for increased activity is cost segregation and the potential for accelerated depreciation.
In simple terms, cost segregation may allow a buyer to accelerate a portion of a property's depreciation into the earlier years of ownership, potentially creating significant tax deductions.
For some investors, this makes completing an acquisition before year-end particularly important.
The year-end deadline can create added urgency among qualified investors particularly cash buyers and well-capitalized groups looking to deploy capital before December 31.
Creating Urgency Among Buyers
Investors Are Still Focused on the Fundamentals
That said, the opportunity still needs to pencil.
Investors are scrutinizing financials, major building systems, and tenancy-related risks more closely, particularly with borrowing costs remaining elevated and other investment alternatives competing for capital.
Have Questions or Want to Know What Your Property Is Worth?
If you have questions about cost segregation or would like to
understand the current value of your property, with no obligation, give me a call.
