How much leverage is appropriate when purchasing commercial real estate?

Leverage can be one of the most powerful tools available to commercial real estate investors when used responsibly. Borrowing allows investors to preserve capital, acquire additional assets, and potentially improve long-term returns. However, leverage also increases financial risk during market downturns, vacancies, or periods of rising interest rates.

Successful investors generally seek financing that supports long-term stability rather than simply maximizing purchasing power.

The goal is sustainable growth—not excessive debt.