Commercial Retail Sector
Emerging opportunities in retail real estate investments
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Commercial Retail Sector in Texas
Commercial retail properties are used to sell consumer goods and services. Acupuncturist and actuaries rent retail space. So do coffee shops and florists, fashion boutiques and dry-cleaners. There is a wide range of tenants hunting for retail space to rent. That is why owning retail space is so attractive.
The unique value of Mays is our ability to give you an in-depth understanding of the local market. Whether you are investing in retail property in Amarillo or the greater Texas market, we are positioned to help a buyer purchase a substantial income stream today and develop a strong exit strategy for tomorrow. The key is investment creativity and a good understanding of micro-economic realities in the submarket. It is not enough to pick the right city at the right time, you have to know that city and be able to pinpoint where the best market opportunities are located. This is especially true in the retail sector of commercial real estate investments.
Six Reasons to Make a Retail Property Investment
Most of us have given in to retail therapy but have you considered investing in retail real estate? Maybe you lease shop space and want to own your own place and lease out the remainder to tenants. Real estate properties is the most diverse sector of commercial real estate. And it is well worth taking a look at in terms of making a commercial investment. There are at least six reasons to invest in the CRE retail sector:
- High Yields: Retail offers high yields. This is great for investors wanting to establish an income-stream investment and still enjoy an increase in the value of their property investment over time.
- Long Leases: Retail leases are typically signed for five years. This gives tenants enough time to establish their business and owners security. Most leases include annual rent increases.
- Low Maintenance: Unlike residential rental property, retail leases tend to be net leases where the tenant bears a lot of the costs of occupancy such as property taxes, utility bills, renovation expenses, and maintenance costs.
- The Economy: The economic trends are ticking upwards. We have the lowest rate of unemployment since 2000. Wages are increasing, which means people have more money to spend. This is all good news for the retail sector.
- Retail Landscape: Consumer research shows that consumers prefer brick and click when it comes to retail shopping. They want to be able to purchase online but they also want to be able to come in to a real store and enjoy the shopping experience. Retail tenants that provide both are better positioned in the retail landscape.
- Great Location: Retail properties are generally located on great pieces of real estate in premier locations. Many retail sites can be converted to office or special purpose spaces with very little costs.
Mays Provides the Background Comps
Mays provides vital information to help you make an informed decision regarding your commercial real estate investment. We give you useful data about the construction of the property, such as the year the property was built, if there have been any updates to construction, as well as unit sizes. We provide ratios of rental and vacancy rates to ensure the location is a proper investment for potential buyers. In addition, Mays locates information about licensing and operating expenses of the property and looks out for possible competition in the surrounding area. Along with this, we provide a variety of reports:
- Market Reports: Detailed research on market shifts, changes in technology, and the economy near the property.
- Submarket Reports: Data on specific submarkets or neighborhoods within a specific metro market.
- Metro Reports: Historical trends that are a foundation for any precise market analysis.
- Rent Comps: Rent comps help investors evaluate property performance as compared to its competitors.
- Sales Comps: See properties similar to the one you want and find out what they have sold for before making financial decisions.
- New Construction Comps: Stay informed about upcoming, completed, or current projects that are under construction in the area they you are looking to purchase property.
For more information about the resources we offer commercial real estate property investors, see Mays Market Reports and Mays Property Reports. Or if you need specific information or have a question, visit our Question and Answers or Contact us.
Inc, R. (n.d.). The Leader in Retail Sector Data and Analysis.
Marsh, A. (2016). The 6 Types of Commercial Real Estate Properties.
Realcommercial.com.au. (2018). What is retail real estate?
SVN International Corp. (2016). Top 3 Reasons to Invest in the CRE Retail Sector in 2017 – SVN International Corp.
Ross, S. (2015). What are the main reasons for investing in the retail sector?