Athens County Ohio Commercial Real Estate Market Trends Analysis

Industrial properties are commercial properties that are typically rented by Business to Business (B2B) companies. B2B companies either make or deliver products to other manufacturers or retailers.

But, at this time, there is a growing group of industrial properties whose renters are internet order fulfillment centers that deliver products directly to the customer.

The owners of industrial assets are also long-term investor-landlords. Their profitably projections involve lease income and asset appreciation. Rental agreements can be either gross or net.

Annual and 10 Year Population Growth

Industrial property investors require population statistics for purposes that are different from residential investors. They do not lease to the public, however they have to see a growing number of taxpayers in the area. If the local government cannot collect enough taxes, it is unable to maintain its obligations to sufficiently administer the infrastructure that industrial tenants need.

A region that is losing its residents will undergo weak commercial property value increase in addition to residential. Industrial tenants are operating businesses that need workers. These tenants won’t be satisfied gambling on an area that doesn’t have an increasing amount of potential employees.

Property Tax Rates

Property taxes are the same economic indicator for industrial property investors as they are for apartment building investors. Inconsistent tax rates keep you from correctly predicting your projected returns in that location.

Our experts wrote informative guides on commercial real estate taxation as well as how to reduce commercial property tax in the U.S. to help investors get informed about taxation more deeply.

Accessibility

Businesses that lease industrial properties move big items or large amounts of items. Tractor-trailer trucks are typically used to handle this. Industrial properties need to be adjacent to highways so that big trucks can reach them without difficulty.

Many industrial tenants need to reach railroad or airport freight terminals. Industrial properties that are situated close to an interstate make this more convenient, which makes the property more valuable.

Utilities

Production properties often need large levels of electricity and water. If an industrial property does not possess adequate utilities, it will constrain the types of tenants that will rent there.

Companies that are contained in retail premises sell directly to the citizens in the market. Those properties could hold a single tenant (single-tenant) or several tenants (multi-tenant). Single-tenant buildings might contain a bank, a pharmacy, a restaurant, or an automobile service center.

Multi-tenant properties can be 2 or 3 unit properties, small “strip” shopping centers, big “big box” or grocery shopping centers with national anchor stores. Centers that contain condos or apartments, offices, and retail shops are known as “lifestyle” centers.

Retail owners use “net” lease agreements that require the renters to additionally take care of the taxes, insurance, and maintenance of the common areas such as the parking areas. Net lease agreements additionally say that the renter pays for the upkeep of the property.

Retail property investors search for the demographic data that their tenants will require in their site requirements.

Population Growth

Retail investors don’t only look at the total area’s population and improvement. The important data will correspond to the immediate trade area around the potential investment property. Clients need to be able to locate and conveniently reach your retail tenants.

A trade area that doesn’t currently have sufficient “rooftops” will not do for retailers even if it is increasing. Retail property investors want to review the existing population growth, average yearly population growth, decade population growth, and daytime population.

Median Income

National brands or “credit tenants” have very specific location criteria that include wage levels. Median income data is a guide to the shoppers who can pay for expensive products from luxury stores or customers on a tighter budget who need lower prices.

Median Age

Retail property investors rely on age information that different investors don’t consider. Depending on the category of center (grocery anchored, entertainment anchored, big box retailers) the age of the populace could attract desired retail lessees.

Property Tax Rates

Tax rate data is assessed by retail investors for the identical reasons as residential and industrial property buyers. Bigger taxes equate to higher rents which inflate vacancy rates, and regions with increasing tax rates often have decreasing property values.

Having your real estate overvalued by the government is a hidden problem that leads even to higher losses. If it is, the best commercial real estate lawyers in Athens County OH have a plan on how to protest the wrong assessment.

Office space is leased to businesses that look for a location for their employees to work. Office space can be large enough for a single person or tens of people. For a lot of large brands, renting office space allows them to utilize their capital for the improvement of their business.

The lease contract used for office tenants is a gross lease, sometimes called a “full service” lease. All of the owner’s expenses are added when the rental payment total is determined. You might find modified variations of gross leases that are tailored to work that particular circumstance.

Office building investors hold these properties for a long time which provides returns from both repeating lease income and the increasing value of the asset.

Population

Office building investors need demographic data that shows the availability of acceptable workers for their favored tenants. They search for the total populace number, their ages, and their education. Knowledgeable office investors acquire assets in areas where their renters want to relocate.

Property Tax Rates

A properly managed city or county that draws potential office workers to the region will not have high or consistently rising tax rates. Strong renters will search for that type of environment.

Incomes/Cost of Living

Higher incomes could signal an educated population that a lot of office lessees need. The data also helps them budget for labor expenses.

Education

Education achievements are analyzed by office tenants and investors to a greater degree than other property investors. They have to know if they are targeting renters who need higher degrees of education or not.

BRRRR, which means “buy, rehab, rent, refinance, repeat”, is an investing plan to expand your portfolio by leveraging the increased value of the property. This is a type of Buy and Hold investment where a revenue producing property is held for a long time. This method has the benefit of providing short-term (rental) income and profit from the long-term appreciation in value.

First the investor purchases a rental property, then they fix it up and secure a renter. As soon as they are able, the investor gets a “cash-out” refinance that enables them to take funds out of the asset in cash. The money is utilized for the cash investment in another property, and the procedure is repeated.

To purchase and rehab commercial real estate, investors prefer nontraditional loans. Banks and other traditional lenders don’t finance these projects fearing a high risk.

Visit our commercial real estate vendor directory to choose the top commercial rehab lending companies in Athens County Ohio and the best Athens County commercial hard money lenders.

From one of the best commercial real estate brokers in Athens County OH, you can get an insight about the benefits and drawbacks of the location for your business. Read below to understand what factors it’s best to ask them about.

Median Gross Rents

Investors need to know how much rent they can charge and if it is probable that rents will grow in the future. This one item carries a lot of weight when the eventual market determination is made.

Property Value Growth

Property values are supposed to be increasing in the market for a buy and hold strategy to work.

Population

The key populace information for buy and hold investors is the growth rate. Anemic residential areas that they need to avoid will show static or declining rates.

Income

To purchase the appropriate investment real estate, investors must be acquainted with their target tenants’ level of income. An asset that does not meet the needs of the market will show a high unoccupied rate.

Property Tax Rates

Increasing taxes can cut into an investor’s returns. Reliable, realistic taxes are an accurate signal that the community is a vibrant environment for your project.

Be advised that counties’ assessments of property values are often inaccurate, which makes investors pay unfair tax amounts without knowing. To initiate a tax protest process, consult with the top commercial property tax protest companies in Athens County OH and best Athens County commercial real estate appraisal companies.

Professionals in the real estate industry consider development as producing complete housing community ventures or any type of commercial facilities. A developer locates and acquires suitable property and creates either parcels for purchase or buildings that are rented to occupants.

Real estate development includes dealing with zoning approvals, managing sitework plans prepared by civil engineers, working with engineers and architects on building plans, and leading the venture through the local municipality for authorization. When all the submissions are approved, the site work and construction are done and buyers or renters are located.

It can take one or two years from the beginning to finish of a development venture. During that period, economic and regulatory shifts could impact the investor’s success. That is why the most financially perilous way of property investment is development.

Different events often force developers to put a building process on hold. During this period, the site can be damaged by criminals, natural disasters, or other things. The best commercial property insurance companies in Athens County OH help professional investors avoid financial damage caused by such events.

Insurance is something you may need to provide to lenders while submitting documents for financing. The best commercial construction real estate lending companies in Athens County Ohio could provide a list of companies they consider worthy.

Population

To make certain that their housing and commercial development ventures are situated in acceptable places, developers assess the identical populace size, populace growth, household wages, and education achievements of the populace that their intended users need to find.

Income

Retail property developers consider wage statistics to locate their project where it would attract the buyers that their desired tenants need. A location that doesn’t draw a high-end retailer could be exactly what a moderately priced tenant is after.

Office and industrial renters will want to see the pay rates that their potential workforce will require. Wage standards help developers know whether a place is good for industrial or office spaces.

Education

Companies that occupy office and industrial properties hunt for distinct educational indicators in the area. Office building renters often seek possible workers with a college degree. Blue collar employers are okay with high school graduates.

Age

Many developers want to discover a youthful to middle-aged citizenry that supplies a reliable tax base. A population that is actively involved in the workforce is perfect for office and industrial property developments. Retail real estate developers require families and labor pool participants who dine out and go shopping more frequently.

Residential property developers seek the identical age category because they are more likely to be moving up the social ladder, which increases home sales.

To invest in mortgage notes, the investor pays less than the outstanding balance for loans already in place, and takes the place of the first lender. Lenders are often enabled to sell loans in order to boost their funds, however they frequently sell because the loan is “non-performing”.

One mortgage note investment method is to create a new loan payment program that is easier for the borrower to meet, and keep the investment in their portfolio long-term. If the borrower can no longer pay, the investor has all the foreclosure rights of the first lender and can foreclose to recoup their investment.

Population

One of the most basic factors in real estate investing of all types is the magnitude of the market’s populace and whether it’s growing. Investors know right away if a market is a possibility by looking at population information.

Property Values

A mortgage note investor has to discover that property values in the market are increasing. The strength of the property is the strength of the investment.

Property Tax Rates

When property taxes increase too often, borrowers who have trouble making their loan payments will find it difficult to keep up. Such a picture hurts long-term investors, but it assists short-term note investors who intend to turn around their investment sooner.

Another way to invest in the purchase and oversight of real property is to buy shares in a REIT (Real Estate Investment Trust). Lease income and periodic asset liquidations create the REIT’s revenue.

These trusts have to pay out ninety percent of profits to shareholders as dividends. The ability to cash out by selling their REIT shares attracts lower net worth investors.

Such investors are passive investors who have nothing to do with the selection or management of the properties.

People wanting to become passive investors look into buying REIT shares. They buy REIT shares once they liquidate real property.

There exists a highly beneficial legal vehicle permitting you to postpone paying taxes on property sale in this case. Learn more about this from our articles: Can You Do a 1031 Exchange into a REIT with a Section 721 Exchange? as well as A-to-Z Guide to Delaware Statutory Trust (DST) 1031 Exchange.

A 1031 exchange accommodator is required by the Government to work as a middleman in the transaction. Talk to some of the best 1031 exchange Qualified Intermediaries in Athens County OH providing this service.

Another way that money is raised for real estate investments is a real estate investment fund. These ventures possess interest in organizations that invest in real property, such as REITs.

Unlike REITS, funds aren’t required to disburse dividends. The shareholder’s profit is generated by the valuation of the fund’s stock.

A real estate fund might be a mutual fund, a private equity fund for wealthy investors, or exchange-traded funds (ETFs). Shares in real estate funds are bought and sold on the public market which is convenient for starting investors.

Because they are passive investors, fund shareholders are not part of any decisions including property acquisitions.