The Growth of Commercial Real Estate in Philadelphia
If you are reading this article, there is a good chance that you are about to purchase a Commercial Real Estate Property in Philly, The City of Neighborhoods. But investing in real estate is not a no-risk job. That’s why you are researching your options. You want to know more about the prospect of the real estate industry in the city.
Well, you are in the right place. We are real estate experts and we know Philly like the back of our hand. And in this article, we will discuss what it means to purchase a Commercial Real Estate Property in Philly by looking at the primary drivers of market growth in the city. And then we will give you some Pro tips and insights to help you make a satisfying purchase.
Let’s begin:
Key Drivers of Commercial Real Estate Growth in Philadelphia
We all have experienced anxiety before making big decisions. It’s understandable to doubt whether investing in Commercial Real Estate Property in Philly makes sense or not. So let’s deal with this cloud of doubt and explore some of the reasons why Commercial Real Estate is such a brilliant decision:
1 Strong Market
First things first. To run a promising business, you need to establish your brand in a city with a vibrant community, ambitious business owners, and a growing market. That’s what Philly is all about. The city enjoys a truly diverse economy with a whole range of specialized businesses and niches spread throughout the city, from healthcare to finance, technology, you name it!
Moreover, Philadelphia is located close to major metropolitan areas in the Northeast region of the country, which make it even more appealing for business owners who want quick and easy access to a considerable customer base.
2 Affordable Prices
It might be hard to believe, but Philadelphia is really affordable when you compare it with other major cities like New York or D.C. However, affordable doesn’t mean cheap. You will pay a considerable price to own or rent a Commercial Real Estate Property in Philly, but you will get the most value for your money.
All in all, Philadelphia enjoys a healthy real estate market. It doesn’t mean you won’t face fierce competition, but if you do your share of research and have the right people on your side, you can easily make a lucrative investment.
3 Diverse Economy
As a business owner, you understand the importance of networking in a city that hosts a wide range of successful, aspiring businesses across various industries, from higher education to manufacturing, food processing, tourism, and telecommunications. Let’s put it this way: Philadelphia is a city that promises a thriving future to all brands and businesses.
What it means for you is that you will have unlimited collaboration and partnership opportunities, tons of potential customers, and numerous ways to promote your brand. It also means that the value of your investment in Commercial Real Estate Property in Philly will be on the rise for the foreseeable future.
4 Government Incentives
Philadelphia is the birthplace of America and one of the most thriving cities in the world. So, it shouldn’t be a surprise that its inhabitants receive a host of different governmental incentives and tax breaks. This is especially a great advantage for new businesses that need every resource they can get to start their journey toward success.
Some of these incentives are specially designed and offered to small businesses and investors, encouraging them the start their brand in an attractive location. You are essentially getting the best deal possible: running a business in a flourishing environment while investing your money in a guaranteed real estate market.
Tips for Purchasing a Commercial Real Estate Property in Philadelphia
Investing in any real estate market requires patience, careful analysis, and study of market trends as well as following the best practices and strategies that enable you to make an informed decision. Here are some of the market-proven tips that will help you make a lucrative investment in Philly:
Do Your Research
Every important decision should be made on careful observation and consideration of all important facts and details. Investing in real estate is no exception, especially if you are new to the local market and don’t have a lot of information about current market trends, economic conditions, and future estimations of the property value.
Depending on the type of business you run, different factors might have different importance in your decision. For instance, if your business success depends on having a large customer base, you need to find a place with large population growth or specific demographics. Once you find your sweet spot, you will never have to change your place.
Do the Math!
Commercial real estate investments are not cheap. You will need to invest a significant amount of capital and if you don’t want your hard-earned money to be lost, you have to evaluate your options very carefully. Depending on your current financial status and the scope of your business, you can opt for options like loans, private equity, crowdfunding, or joint ventures.
Each method has its own benefits and drawbacks. There is no right answer. So, make sure you examine each option and see which one is a financially viable strategy that gives you more financial safety as well as the freedom to proactively improve your brand without worrying about the huge upcoming bills.
Keep in mind that there are other costs besides the property’s value that should be factored in like maintenance and operating costs, property taxes, insurance, utilities, as well as the costs of advertising, brand promotion, and marketing. You have to make sure you will be able to pay for them while keeping your business profitable.
Conduct a Thorough Inspection
When it comes to life-changing moments in life, some people prefer to close their eyes and go for it! That’s not a wise strategy, especially when the stakes are this high. The alternative approach is to get your magnifying glass and conduct a thorough inspection to make sure there won’t be any unfavorable surprises later on.
There are certain things that you can identify without special training or prior experience. For instance, look for any cracks, signs of water damage, or other issues with the building’s foundation, roof, walls, floors, etc. But you also need a trained eye. So, consider hiring a professional inspector who has experience with commercial properties.
Work with a Professional
And finally, you will need a reliable real estate company to ensure you can find the right place to invest your money and start your business. Working with a real estate agent is the best way to have a professional, objective opinion about a property and make sure you have all the necessary information about the neighborhood, your financial options, or any legal issue.
Conduct comprehensive research and look for developers or companies with a compelling portfolio. Or save yourself some time and check out our website to find the best options in the city.
Bottom Line
The continuous growth of Commercial Real Estate in Philadelphia means only one thing: it’s time to get your brand established here! And we are here to help you. Our team of experts will stand by your side throughout the process and help you find the best place to invest your money.
Interested in buying Commercial Real Estate in Philly? Browse listings in your favorite neighborhoods and find your house of dreams.
Call Jim Onesti Today
Whether you’re looking to invest in commercial real estate or searching for luxury homes for sale in Philadelphia, Jim Onesti is your real estate expert. Jim Onesti has been one of the most successful real estate sales professionals in Philadelphia; focusing largely on luxury homes and large-scale commercial real estate and high-end developments. For further information, contact Jim today to schedule your appointment.