In spite of a downslide in state revenue due to a drop in oil prices, the retail sector of Anchorage continues to thrive. While some box stores may be seeking to downsize or rent out extra space, commercial real estate continues to be in high demand in Anchorage according to property management sources. This keeps the city’s commercial vacancy rates around one third of the national average of retail vacancies. While some remain nervous because they feel the effects of the oil price crash may not be felt immediately by retailers, this hasn’t seemed to stop many new businesses from resizing, opening, or breaking ground for new stores.
Some of the newer businesses expected to open in Anchorage include an artisan market in the old Spenard La Mex building, Ulta Beauty, Men’s Warehouse, and Pier 1 Imports at Tikahtnu Commons, and a 35,000 square foot H&M Clothing store and several other outlet retailers at Diamond Center Mall. This list goes on to include many new dining establishments and even a 120 room hotel. It is expected that Anchorage’s retail sector will continue to grow due to the surge in the economy of the United States.
It is thought that even with the drop in oil prices, that Alaska is better able to handle the situation now than it would have been back in 1986 when both commercial and residential real estate prices plummeted. This is due to interest rates currently being historically low, and because the state government has money in the bank and Alaska is now more economically diverse than before. While oil prices may have dropped, so did government spending.
Aside from the booming retail scene, there are still some concerns about the economy in the Anchorage area. The area is expected to lose hundreds of jobs in 2016 and there is also a lack of available housing in the area which can drain the economy and also prevent new workers from becoming a part of the city’s work force.
To bring in new workers to the area, it is said that Anchorage needs to find innovative ways to attract them to the community. This might mean the development of higher-density housing projects, which would require the city to change some of its zoning regulations. Other ideas might include introducing a new brew pub to the area which would tend to attract a young workforce. In turn, this leads to more people working and living in the area, which means that the economy gets a boost.
Do you need to sell off some property you inherited? Or do you want rent your house out for a few years while you travel to work in a different country? It doesn’t matter the size or location, there is always someone interested in it, you just need to find them.
This is a job you can hand over to a property management firm in Anchorage. They will help you to sell or lease real estate by connecting you to a prospective buyer or tenant. With years of experience to work with, these companies will find the right kind of people and get all the legal documentation done on your behalf.
Tasks of a Commercial Real Estate Manager
Property management firms hire commercial real estate managers who perform duties to suit their clients’ needs. After they handle the marketing and get you a customer, these managers will see to it that the lessees are well settled in.
Whether you are preparing to finalize the purchase of your first Anchorage commercial real estate investment or have been an investor in the area for years, you may be taking a closer look at what property management services have to offer. You may have heard that a property management service in Anchorage can decrease a significant amount of your stress and hassle associated with the task, but you may not be certain that the fees they charge are worth paying for. With closer inspection of the services offered, you may realize that this is exactly the service that you need.
The Rental Process
The rental process for a commercial property can be burdensome to deal with, and it can take up a considerable amount of your time and energy.
There are several goals that different investors may have in mind when shopping for commercial real estate in Anchorage. For example, some may want to flip the property with a quick renovation and a sale. Others may want to hold onto a property for long-term income generation. If you are looking for an income-producing property, there are a few important steps that you can take to make a better buying decision.
Review Operating Statements Closely
When buying commercial real estate, it is ideal to ask for at least the last few years of income and expense statements, or operating statements of the property. This will include figures for property taxes, insurance, maintenance utilities and more. It also will include the income generation numbers.
When you are in the process of purchasing a piece of real estate in Anchorage, AK, one of your top considerations will likely be the functionality of the building or buildings situated on the land that you are buying. While each city and neighborhood has its own zoning requirements, you may be interested in retaining an experienced property management company to help you develop and lease the building for another purpose. Keep these out of the box commercial real estate development ideas in mind as you go through with your property purchase.
One of the most common projects that take place after the purchase of a commercial real estate property is redevelopment. An old, dilapidated factory or warehouse in Anchorage offers ample space and may be in an ideal location for redevelopment in another way.
When you are looking to invest in commercial real estate in Anchorage, Alaska or anywhere else, there are many important considerations to keep in mind throughout your search. In addition to working with an experienced commercial and investment property specialist, you will also need to consider your own requirements for the property as a part of your purchase plans.
Buy If the Price Is Right
Before you get your heart set on a particular plot of land as an investment property, set a budget for yourself. Going over your predetermined budget could make it more difficult for you to exit the property when you need to do so. You may also find that going over budget incurs additional costs over your period of ownership, such as increased property taxes, particularly in Anchorage, AK. Knowing your budget and sticking to it helps to ensure that you will be satisfied with your purchase.
Owning real estate can provide a variety of revenue streams for an individual. Whether you are 35 or 75, your duplex, apartment complex or commercial building will create a steady revenue stream that can help you achieve financial security today and in the long-term. Managing a property in Anchorage, however, can be a complex endeavor. How can a property management company help you?
Don’t Worry About Administrative Tasks
A property management company can screen tenants before they move in and collect rent after they move in. When a lease expires, it can either be renewed or terminated without the need for you to take any action. Having a third-party looking after your property can help keep vacancies to a minimum while ensuring that tenants pay rent and adhere to the terms of their leases.