Are You Looking At Commercial Real Estate In Florida?
Commercial real estate in Florida is a high-value investment. The Sunshine State has a robust local economy driven by tourism, population growth, and a business-friendly tax climate.
In 2019, Florida ranked fifth in the U.S. for commercial real estate development. The National Association of Industrial and Office Parks (NAIOP) report noted that commercial real estate investments in Florida contributed $20 billion into the local economy. It also helped create more than 161,000 jobs.
The pandemic has understandably dampened some investors’ appetite for real estate. But the long-term value of an investment property is not going to change any time soon, especially in Florida.
With or without a global health crisis, investing in commercial real estate is a major financial decision. The first important tip to remember is to work with a reputable commercial real estate agent.
A good agent will give you unique access to local market data that may not be available publicly. They should offer expert advice based on their experience in their local market. This includes a margin of safety, breakeven analysis, and future costs, among others.
A good agent will also help you negotiate with sellers (or buyers if you are selling). They should help you establish local networks and facilitate inspections as well as financing.
If you are looking at the Central Florida market, The Corcoran Connection can help you with all these, and more.
Commercial Real Estate 101: Quick Tips
- Define your parameters. How much are you willing to spend? And how much do you expect to make on this transaction? How much space do you need? And how many rent-paying tenants do you need to recoup your investment?
- Assess your location. A good way to evaluate your market is to chat with homeowners in the area. You can also check out residential properties for sale to give you an idea of the demand. A good agent with strong market connections can point you in the direction of promising investment leads.
- Be familiar with key terms. You will need to have a basic understanding of terms like capitalization rate, net operating income (NOI), usable square footage, and common area maintenance fees, to name a few. You also have to understand the different types of commercial real estate. Properties can include office buildings, retail stores, restaurants, or warehouses. Each type of property is governed by different zoning laws. You must make sure this is aligned with your overall strategy.
If you are completely new to real estate investing, there may be a learning curve as you familiarize yourself with the technical terms. But your agent should be able to guide you through this as you go along.
As in any type of investment, it is crucial to go in with a plan. The bigger the investment, the bigger the risk. So, if you are in doubt about something, consult with a professional.
A Central Florida Real Estate Company That Can Help You Maximize Your ROI
Ready to look at commercial real estate listings? We can help you.
As locals, we offer a unique perspective of the real estate market. We have also established deeply rooted connections that allow us to provide our clients with access to insider information.
As agents, we are renowned for our honest, timely, and adaptable service. We want to help you achieve your goals, and we are here to guide you every step of the way. Give us a call now.