High tide, low tide, and slack tide are terms used to describe the movement of water in relation to the shore. In commercial real estate, these terms can be used as an analogy to describe different phases in the market cycle.
High tide can be compared to a strong seller's market, where demand is high and prices are rising. This is a time when investors and property owners are able to sell their assets at a premium, as there is a lot of competition for available properties.
Low tide, on the other hand, can be compared to a weak buyer's market, where demand is low and prices are falling. During this time, it may be difficult for property owners to sell their assets, and investors may be able to acquire properties at a discount.
Slack tide can be compared to a transitional phase in the market cycle, where supply and demand are balanced and prices are relatively stable. During this time, investors may still be able to find good deals, but there is less urgency to buy or sell.
It's important to note that the market cycle is not always predictable, and there can be fluctuations and variations within each phase. Additionally, different property types and locations may be affected differently by market conditions. Nonetheless, the analogy of high tide, low tide, and slack tide can be useful in understanding the general trends and movements of the commercial real estate market.
Justin Langlois, CCIM is a Commercial Real Estate Investment Advisor with Stirling servicing Baton Rouge, Louisiana and surrounding markets. Please reach out to Justin to discuss your real estate investment strategies.
