It's no secret that commercial real estate has taken a hit in the years since the pandemic. Is now a good time to expand your portfolio with Southern Jersey commercial property investments?
Southern Jersey has plenty of business development opportunities to offer, even if it's not as densely populated as other areas in the state. According to NJ Biz, regions east of the Garden State Parkway and west of the New Jersey Turnpike are particularly ripe for development.
Before you make a commercial real estate investment, there are a few things to consider. Read on for our quick guide to investing in commercial buildings in South Jersey.
Commercial Properties to Invest In
One reason some investors are wary of commercial real estate right now is the high office vacancy rate, which hit a record high earlier this year.
Fortunately, other types of commercial real estate are still going strong. Lucrative options include:
- Industrial spaces and warehouses
- Multi-family units
- Mixed-use properties
As the name suggests, a mixed-use property is used for more than one thing. Lately, we're seeing an increase in buildings with floor-level shops and restaurants, and apartments on higher levels. If you're investing in dense areas like Voorhees, these mixed-use properties may be the way to go.
Advantages of Commercial Property Investments
Some investors prefer commercial properties over residential properties. Some of the potential advantages of investing in commercial real estate include:
- Long-term leases with built-in incentives
- Flexible financing options including fixed-rate mortgages
- Potential tax breaks
For example, commercial real estate investors may receive tax breaks from the NJEDA. The purpose is to reduce the financial risk for investors who support the state's economic growth.
You also don't have to manage your commercial property on your own. If you're looking for rental income without the extra work, full-service property management can help. Property management is a great option for full-time workers, retirees, and out-of-town investors.
Challenges of Investing in Commercial Properties
With such great advantages, why aren't more people buying commercial real estate? You also need to consider potential challenges of commercial property investments, including:
- Large upfront costs
- Ongoing maintenance costs
- Zoning laws and building codes
- Legal compliance issues
- Market fluctuation
With the right property managers, most of these concerns are easy to manage. For example, a thorough maintenance strategy can keep maintenance costs under control. Plus, your property manager will apply their legal expertise to ensure that your business practices always comply with state and federal laws.
Get Commercial Property Management from PMI SoJay
It's easy to underestimate South Jersey real estate trends. After all, we don't have the population density of Central or North Jersey. However, that doesn't mean that there aren't opportunities to make commercial property investments.
Are you looking for property management support? PMI SoJay has your back. Operated by a South Jersey native with a background in emergency response, we understand the market and how to navigate any crisis.
Ready to learn about our services? Contact us today and let's talk about your investment portfolio.
