Category Archives: News

Multi Family Property Investing in Anchorage Alaska

When it comes to investing in real estate, multi family properties can be a wise decision that can create steady cash flow for the investor. Multi family property investing in Anchorage, AK offers several benefits over investment in single family dwellings. Here we take a look at some of the benefits of owning multi family properties as an investment.

Multi family properties offer the advantage of being easier to manage. Instead of going here and there around town to handle individual tenant needs, everything is under one property. This means the need for only one property manager who can handle issues such as collecting rent, maintaining the grounds, and handling issues with tenants.

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When making improvements on the building(s), you are adding value to your investment that also benefits the multiple families who live there. This means creating an attractive, well functioning space that will make tenants want to stay, which in turn means a steady income for the property owner. By making improvements and upgrades that benefit the tenants, you are also increasing the value of the property. This is a great way to appreciate the property while pleasing the tenants at the same time.

Multi family property investing in Anchorage, AK also provides opportunities to create even more cash flow than the money received from rent. Adding something to the space that will benefit all of the tenants as well as your finances is a great way to do this. For example, if your units within the property do not have hook ups for washers and dryers, consider adding small laundry facility on the property grounds. This is a great way to gain the money your tenants would otherwise be spending elsewhere, plus it provides a convenient perk of living in your building as opposed to someone else’s. This creates a win-win situation for both the property owner and the tenants.

Multi family properties also tend to hold their value better than individual properties. This is something to think about should you ever consider selling the property sometime later. Another financial perk for the investor is that many times multi family dwellings provide great tax incentives which means saving money.

Providing clean, safe, and affordable housing options for multiple families is always a good thing for both the tenants and the investor. Taking a less than desirable property and rehabbing it to make it a place families will want to live is a great way to invest your real estate dollars. You can also be sure that by doing this, you will see a favorable return on your investment.

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Benefits Of Working With a Good Property Management Company

In order to obtain the most benefit from your commercial property investment, it is a wise decision to hire a property manager. Property management firms understand the ins and outs of the day-to-day operations of handling tenant concerns, building maintenance, utilities, and marketing to obtain new tenants. These are issues that many property owners are not specialized in or prepared to deal with on their own. Here are some of the many benefits to be gained by using property management for your commercial properties.

* Keeping Tenants Happy

benefits-of-property-managementOne of the main aspects of making a profit from your commercial property is to keep it occupied by tenants. The property manager acts on behalf of the property owner to ensure that tenant needs and concerns are addressed. They will also handle such issues as having tenants sign new leases upon the expiration of the former lease. This saves the property owner a lot of time and even allows them to keep properties in another state while not having to worry if there is an issue with a tenant. Keeping tenants happy is the best way to keep your commercial spaces occupied and maintain a steady rental income from them.

* Advantages Of Market Presence

Whether you have a new commercial property that you need to fill with tenants, or need to lease a vacancy, a property management expert can help to fill the empty spaces quickly. Property management companies are respected in the area market and know what it takes to attract businesses to your property. Hiring the right property management company can also benefit the owner if the company has a good reputation within the community.

* Making The Most Of Your Long Term Investment

Commercial property is a long term investment that most often yields the owner more profit than owning residential properties. Property management plays a huge role in dealing with the many issues that can arise when dealing with both tenants and managing buildings. The property manager oversees the physical property to ensure it is properly maintained and that utilities and other bills are paid, as well as handling relations with the tenants.

* Conclusion

By hiring a property management service, the commercial property owner can be sure that their long term investment is being handled properly. This also takes a lot of pressure off of the owner, as the property manager will handle many aspects of the property such as finding and retaining tenants, keeping up the building and grounds, dealing with paying bills associated with the property, and handling the many issues that may arise with both tenants and buildings in a professional manner.

Investing in commercial real estate in Anchorage Alaska

There are many benefits to be gained by investing in commercial real estate property in Anchorage, Alaska. Anchorage is the most populated city in Alaska and contains more than 40% of the total population of the state, making it a specifically good area in which to invest in commercial property. Anchorage also has the honor of having been named an All-American City on four occasions, as well as having earned the title of the most tax-friendly city in the U.S., according to Kiplinger. The location of Anchorage, Alaska makes it an ideal location for refueling stops for many international passenger airline flights and the city also houses a major FedEx hub. All of these factors mean that Anchorage has a lot of people not only living there, but passing through, which is always good news for businesses.

Investing in commercial real estate in Anchorage typically tends to be more lucrative than investments made in residential properties in the area. This is due to several factors. It is easier for investors to secure a favorable financing rate when investing in a pre-existing commercial property. Buyers can often receive low interest rates when buying a commercial property in the area. Commercial real estate, unlike investments such as stocks or bonds, tends to retain its value or even appreciate in value because both the physical property and the building structures are considered to be “hard assets”.

Investing in commercial real estate in Anchorage Alaska

Commercial real estate properties offer good appreciation value and any improvements a tenant makes to their business can work to increase the overall value of the entire property. Commercial investments also offer buyers a shield when it comes to inflation, as prices tend to increase along with inflation. This acts as a buffer so that the property owner can keep up with inflation and not lose money on their commercial investment.

Choosing to invest in commercial real estate properties also offers the benefit of higher income potential over residential investments. This can prove especially true for properties in the area that yield higher rental rates or lease payments. Choosing the location in which you invest can make the difference in the amount of income you receive from the property over time.

With its high population and ability to attract tourists and visitors, Anchorage is an ideal location in which to invest in commercial properties. Where there are people, there is a need for offices, shopping, and dining establishments. Investing in the commercial side of Anchorage can be a benefit to the local economy as well as to the investor’s finances.

 

Legalized Marijuana in Alaska

How New Marijuana Laws Affect Alaska’s Commercial Real Estate Market

Commercial Brokers are anticipating a boom in retail and industrial real estate within the Anchorage bowl with the recent passing for legalization of marijuana. There is quite a buzz as potential shop owners, brokers, and marijuana clubs await the public hearing for zoning later this year.

Colorado faced this dilemma in 2013, when their laws were adapted for allowance of retail establishments to distribute marijuana to marijuana card holders. Colorado limited zoning of these establishment and facilities for growth in industrial areas of Denver. This both created an explosion of activity as well as created a huge limitation.

This is the single largest impact on industrial properties in colorado, with record low industrial vacancy rates of 3.1%.

Industrial zoning in Colorado encompasses more than Alaska’s market. Often in the greater Denver area it includes manufacturing, food distribution companies, warehouses for all stores in the areas, ect. Today the limited industrial zoned real estate and vacant land is going for a pretty penny as all of these entities compete with marijuana retailers.

Anchorage’s current industrial market is at a 98% occupancy level, class A, B, and C are full. Retail real estate is at a 97% occupancy level. If Alaska’s market resembles anything close to what Colorado’s market did after the adaptation of allowance of retail marijuana dealers, our market is going to get really interesting.

If Alaska market resembles is anything close to what happen in Colorado after the pass recreational marijuana things are going to get very interesting.

Legalized-Marijuana-in-AlaskaAside from the direct affect on the industrial market, Denver’s real estate as a whole increased. Following the retailer adaptation, the average home price increased by $40,000. As of December 2014, there was a surge of revenue for the state of Colorado via the issuance of 833 recreational licenses, of which 322 where for retailers; and 1,416 medical licenses, of which 505 where for medical marijuana dispensaries. The price-per-square-foot for industrial property increased from $3.34 to $4.43 per SF. Recent news says Colorados landlords are leasing to cannabis grow operations at nearly $20/per SF. That is more than four times the average rent for an industrial building in the city. Even the Springs felt a bump up, with their industrial property going for $12/per SF. Marijuana businesses are willingly agreeing to the substantially higher rate just to secure a place within state guidelines.

In 2014 the State of Colorado reported making $76 million from marijuana; this includes revenue taxes, licenses and fees from recreational and medical marijuana. Can you imagine the impact this would make on Alaska’s state debt? That is, assuming the same impact was made here. Alaska’s population throughout the state ranges over 760,000. Denver’s metro population alone is 649,000. There is a huge difference in the amount of people who may utilize the marijuana license options available in Alaska vs Denver. But, without a doubt Alaskans voted it in.

We are eagerly waiting the zoning hearing happening next month. Check back for updates on the states marijuana laws’ affects on Alaska’s Real Estate. Have questions? Give us a call at (907) 334-4645, Graham Commercial Real Estate Consultants, Inc.

How New Marijuana Laws Affect Alaska’s Commercial Real Estate Market

Commercial Brokers are anticipating a boom in retail and industrial real estate within the Anchorage bowl with the recent passing for legalization of marijuana. There is quite a buzz as potential shop owners, brokers, and marijuana clubs await the public hearing for zoning later this year.

Colorado faced this dilemma in 2013, when their laws were adapted for allowance of retail establishments to distribute marijuana to marijuana card holders. Colorado limited zoning of these establishment and facilities for growth in industrial areas of Denver. This both created an explosion of activity as well as created a huge limitation.

This is the single largest impact on industrial properties in colorado, with record low industrial vacancy rates of 3.1%.

Industrial zoning in Colorado encompasses more than Alaska’s market. Often in the greater Denver area it includes manufacturing, food distribution companies, warehouses for all stores in the areas, ect. Today the limited industrial zoned real estate and vacant land is going for a pretty penny as all of these entities compete with marijuana retailers.

 

Anchorage’s current industrial market is at a 98% occupancy level, class A, B, and C are full. Retail real estate is at a 97% occupancy level. If Alaska’s market resembles anything close to what Colorado’s market did after the adaptation of allowance of retail marijuana dealers, our market is going to get really interesting.

If Alaska market resembles is anything close to what happen in Colorado after the pass recreational marijuana things are going to get very interesting.

Aside from the direct affect on the industrial market, Denver’s real estate as a whole increased. Following the retailer adaptation, the average home price increased by $40,000. As of December 2014, there was a surge of revenue for the state of Colorado via the issuance of 833 recreational licenses, of which 322 where for retailers; and 1,416 medical licenses, of which 505 where for medical marijuana dispensaries. The price-per-square-foot for industrial property increased from $3.34 to $4.43 per SF. Recent news says Colorados landlords are leasing to cannabis grow operations at nearly $20/per SF. That is more than four times the average rent for an industrial building in the city. Even the Springs felt a bump up, with their industrial property going for $12/per SF. Marijuana businesses are willingly agreeing to the substantially higher rate just to secure a place within state guidelines.

In 2014 the State of Colorado reported making $76 million from marijuana; this includes revenue taxes, licenses and fees from recreational and medical marijuana. Can you imagine the impact this would make on Alaska’s state debt? That is, assuming the same impact was made here. Alaska’s population throughout the state ranges over 760,000. Denver’s metro population alone is 649,000. There is a huge difference in the amount of people who may utilize the marijuana license options available in Alaska vs Denver. But, without a doubt Alaskans voted it in.

We are eagerly waiting the zoning hearing happening next month. Check back for updates on the states marijuana laws’ affects on Alaska’s Real Estate. Have questions? Give us a call at (907) 334-4645, Graham Commercial Real Estate Consultants, Inc.