Licking County Ohio Commercial Real Estate Market Trends Analysis

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

But, currently, there is a growing group of industrial properties whose occupants are online order fulfillment centers that deliver items directly to the buyer.

Industrial property investors will hold the property long-term and serve as the landlord. Their investment projections count on revenue from both lease and the eventual liquidation of the asset. Leases are either gross or net.

Annual and 10 Year Population Growth

Industrial property investors need population statistics for purposes that are different from residential investors. They don’t lease to the public, but they want to see an increasing number of taxpayers in the community. Sufficient tax revenues are required to maintain highways and infrastructure that industrial properties require.

A market that is losing its residents will experience weak commercial property value increase in addition to residential. The tenants for industrial properties need a consistent local workforce. Significant industrial renters will turn down regions that are dropping citizens.

Property Tax Rates

As we witnessed with multifamily investments, tax rates are a reliable prediction of the economic strength of a potential market. Unstable tax rates reveal a place that most likely is not advisable for your investment’s profitability.

Investors may need to learn more about commercial and industrial real estate taxation and commercial property tax reduction methods from our informative articles.

Accessibility

The renters in industrial properties produce or disburse significant numbers of goods that are big. They utilize large trucks to move their products. Industrial property investors hunt for assets that are close to main roads that big tractor-trailer trucks can access conveniently.

Some industrial tenants have to reach railroad or airport freight terminals. Interstate highways typically go close to those types of terminals which is a bonus for industrial sites situated adjacent to those interstates.

Utilities

Companies that make goods themselves need large levels of water and electricity. If a property doesn’t contain adequate levels of these utilities, some tenants will search somewhere else.

Retail investment properties lease units to companies whose clients are typical people in the area. They might be in a building alone (single-tenant) or in a structure with other renters (multi-tenant). Desirable businesses for single-tenant locations are pharmacies, auto parts stores, banks, and dining establishments.

A property that contains a few businesses is considered multi-tenant property, as are “neighborhood” centers, “strip” centers, grocery store anchored shopping, or malls with large nationally known renters called “big box” centers. Shopping centers that incorporate condominiums or apartments, offices, and retail shops are known as “lifestyle” shopping centers.

Retail leases are known as “net” leases meaning the tenants are responsible for the taxes, insurance, and common area maintenance of the property in what is called “additional rent”. Retail renters additionally are required to maintain the property.

Retail real estate investors look for the demographic data that their renters will stipulate in their location criteria.

Population Growth

The overall information for the region under consideration is not enough for retail investors. Investors also consider the market’s submarkets. Clients need to be able to find and conveniently get to your retail tenants.

A trade area that doesn’t already have enough “rooftops” will not do for retailers even if it is expanding. Investors in retail assets will analyze all categories of populace data like population size, annual and 10 year growth numbers, and how many people are employed in the trade area.

Median Income

Nationally known stores or “credit tenants” have very specific location criteria that involve wage levels. Median income information is a guide to the clients who can buy costly items from high-end stores or clients on a tighter budget who have to have discounted prices.

Median Age

The age of the region’s populace could be critical to retail tenants who lease your property. If your retail property is placed near the age groups that potential renters need, it is less difficult to recruit tenants.

Property Tax Rates

Retail real estate owners utilize real estate tax rates the identical way as both apartment building and industrial investors. Rising taxes are charged to their renters which hurts their occupancy rates, and the value of their property could be reduced over time.

Having your property incorrectly assessed by the tax office is a hidden problem that leads even to more waste of money. Protesting property taxes can be delegated to the best commercial real estate attorneys in Licking County OH.

Office space is leased to companies that require a location for their workers to conduct business. Office units might be big enough for 1 person or hundreds of employees. Major businesses often rent office locations from others rather than use their company’s assets to buy or develop space.

The lease agreement utilized for office tenants is a gross lease, occasionally referred to as a “full service” lease. These kinds of leases add the landlord’s expenses, including real estate tax and insurance into the rent. This arrangement may be customized to meet the requirements of the owner and the renter.

Office space investors keep these assets for a long time which provides income from both repeating rental revenue and the appreciating worth of the asset.

Population

The populace demographic data that office real estate investors search for should indicate a good pool of workers for office tenants. This normally includes the number of citizens residing there, their levels of education, and median age. In order to lease to dependable tenants, landlords need to reflect the lessees’ specifications in their location conditions.

Property Tax Rates

A well managed city or county that draws possible office employees to the region won’t have excessive or consistently rising tax rates. Good tenants for your property will look at this factor and so should you.

Incomes/Cost of Living

Income standards show a potential tenant whether or not employees in the community are appropriately qualified for their positions. It additionally gives them an indication of the salary standards needed to contend for the optimum employees.

Education

Office owners realize that the education achievements of the labor pool will be important to their possible tenants. They need to know whether they are marketing to renters who require higher degrees of education or not.

BRRRR, which stands for “buy, rehab, rent, refinance, repeat”, is an investing plan to expand your assets by leveraging the increased value of the property. It’s a category of Buy and Hold investment where an income generating property is kept for a long time. The advantage is that the property generates income while you own it and could be sold later for a profit when its value has grown.

After the property is acquired and improved, it is rented to a tenant. As soon as they are able, the investor gets a “cash-out” refinance that lets them take funds out of the property in cash. The investor uses this money to buy more property which is fixed up, rented, refinanced, and so on.

Traditional commercial property loans don’t work for buy and rehab investments. Banks and other traditional lenders don’t lend on this type of investments considering a higher risk.

Our commercial real estate vendor directory can shorten your way to the top Licking County commercial private and hard money lending companies as well as the best commercial rehab lenders in Licking County Ohio.

In this resource, you will also see the top commercial and industrial real estate brokers in Licking County OH
whose local advice may be valuable for you. Keep reading to understand what indicators to talk with them about.

Median Gross Rents

This data tells investors if they can hit their initial and future revenue goals. This single item is significant when the final market choice is made.

Property Value Growth

If real estate values aren’t increasing, a buy and hold investor is deprived of half of the investment strategy.

Population

The important population statistic for buy and hold investments is the growth rate. Absent an increasing number of residents, real estate will remain idle and depreciate.

Income

To buy the correct investment real estate, investors should be familiar with their target tenants’ amount of income. You do not need a Class A luxury multifamily complex in a region of mid or low level wages.

Property Tax Rates

High or rising taxes will be bad for an investment. On the other hand, consistent property tax rates can signal a growing market.

Additionally, in the local county’s register, your asset can be overvalued, which means you pay excessive property taxes. When that is the case, you may seek the services of the top commercial property tax appeal firms in Licking County OH and the best Licking County commercial real estate appraisal companies.

For a real estate professional, property development refers to the creation of any commercial property or a complete residential neighborhood. The developer must locate property that matches their specifications so that they can produce residential sites for sale or commercial leasing properties.

A developer must make sure the land is correctly zoned, employs civil engineers to plan the site work, hires architects and engineers to draw building plans, and manages the municipal approval procedures. Once all of those steps are properly finished, the developer manages the construction work and promotion of the completed project.

It could take a year or more from the beginning to completion of a development project. A lot can occur, before the project is completed, that can harm the developer’s profitability. For this reason, development is considered the most speculative type of real estate investing.

Unfriendly events often force developers to put a building process on hold. During this period, the site may be damaged by vandals, natural disasters, or other things. You will need assistance by the best commercial property insurance companies in Licking County OH.

Insurance is a service you are likely to need to show lenders while submitting documents for a loan. You will be able to learn about the insurance providers that are deemed good by talking to the best commercial construction real estate lending companies in Licking County Ohio directly.

Population

Developers use populace size and growth speed in conjunction with economic and education information to make certain that they have enough retail shoppers and residential homebuyers in the region.

Income

The income amounts of the area’s people will determine the kind of retail development that the population will patronize. A place that doesn’t attract a high-end retail store could be just what a moderately priced tenant is searching for.

Information on wages can help industrial and office tenants know what they’ll be required to pay their employees in that market. Developers realize this, and use income statistics to predict a market’s appeal for their target renters.

Education

Industrial and office property renters want different levels of education in the locality’s population. The majority of office occupants require college grads for their workforce. Blue collar businesses are happy with high school graduates.

Age

An aging citizenry that more frequently utilizes public accommodations isn’t what developers are hunting for. A populace that is actively participating in the labor pool is the best for office and industrial property projects. Involved employees and their households shop at stores and restaurants that lease retail space.

Growing families turn into homebuyers serving the foundation of a growing residential market.

Mortgage note investors purchase existent loans for less than the amount due and turn into the new lender. The first lender could be agreeable to selling because they require money, or because the borrower is not current with their mortgage payments.

Some note buyers will restructure the loan to help the borrower keep paying their loan payments — for a long-term profit. If the borrower can’t pay anymore, the investor maintains all the foreclosure rights of the previous lender and will foreclose to repay their investment.

Population

Promissory note buyers, similarly to other investors, have to see the number of residents in the prospective market and if that amount is increasing or shrinking. This information is an immediate test of the future economic strength of the market.

Property Values

Growing real property values are the most significant indicator when promissory note investors assess a neighborhood. The note purchaser is lending on the value of the collateral instead of the borrower’s ability to pay.

Property Tax Rates

If real property taxes go up, the higher housing cost will be tough for struggling borrowers to keep up with. This would be not good for interest income, but is in fact preferred by note buyers who expect to turn a profit more quickly by recovering the property.

Real estate investment trusts (REITs for short) are investment entities that invest in and manage revenue generating real estate. They create income from rent and build long-term asset appreciation.

These trusts must distribute 90% of net income to shareholders as dividends. The capability to invest and take out your funds as your demands require make REITs an appropriate way for an average person to invest in real property.

Investors in REITs are passive investors who have no input in the selection or supervision of the properties.

Those wanting to become passive investors look into buying REIT shares. They liquidate their own real estate to reinvest the proceeds into REIT shares.

A like-kind exchange is meant to save money for investors who have this plan in mind. Take a look at our experts’ guides to learn how to benefit from it: Can You Do a 1031 Exchange into a REIT with a Section 721 Exchange? and Pros and Cons of a 1031 Exchange into DST.

A 1031 Exchange facilitator will be required by the Government to be a middleman in the procedure. Find such companies in PropertyCashin’s list of the best 1031 exchange Qualified Intermediaries in Licking County OH.

One more investment choice that collects cash from people to invest in real estate is a real estate investment fund. It’s a company that invests in other real property-associated organizations, such as REITs.

This investment choice does not distribute dividend income to their investors. Similarly to other stock funds, the profitability is generated by growth in the worth of their stock.

Mutual funds, ETFs (exchange-traded funds), and high-end private equity funds are considered real estate investment funds. Similarly to REITS, real estate investment funds give investors liquidity by enabling them to unload their shares on the market at their convenience.

Since they are passive investors, fund shareholders aren’t part of any determinations including asset acquisitions.