Commercial real estate investments in your area can be shrewd financial decisions. The benefits of owning property in a familiar location mean you gain an insider’s view into any potential market shifts or upward trends that you can take advantage of before they become common knowledge.
This could be simple as knowing what other businesses are in the area and the amount of traffic they receive, or a longer term view of any changes in population demographics (especially gentrification) that can be leveraged.
In particular, seek out local areas that have been rejuvenated. Revitalised centres will come with an increase in amenities and facilities. This in turn increases employment and a growth of businesses spring up to support more people working in the area.
As rents in central business districts increase and car accessibility become a prohibitive factor for potential customers, some businesses are opting to relocate to larger premises that offer ease of access for their clients.
Some major corporates are also making this shift and bringing white collars workers with them that also contribute to the growth of employment in the area. These business clusters prompt further investment in retail, hospitality and increased infrastructure which also transform local precincts.
Closer to central business districts, urban renewal is playing a central role especially through a rise in the creatives industries. As cultural projects and events spaces are being initiated by city councils to promote liveability and tourism within their cities, the creative economy is assisting tired looking and less frequented parts of cities to become more fashionable.
This in turn leads to more retail and hospitality businesses in the area. With increased foot traffic, a rejuvenation of these areas is also accelerated as investors scramble to tap into locations that are emerging from periods of inactivity or slower growth.
Finally, when adding to your commercial portfolio it is worth seeking options that offer upgraded facilities and infrastructure that provide for an array of technological advantages essential to modern businesses.
Real estate with high speed internet and cabling that allows for future integration of smart technology makes for a strong investment and is increasingly factored into new construction and rejuvenation of existing areas earmarked for commercial growth.
So when making your next move in commercial real estate, keep in mind the benefits that revitalised centres can offer and consult your local property specialists to assist you in your next investment.