Commercial real estate grows well under a healthy local economy. This is why the location of a commercial space in Loudon, VA is very important. And when we talk about commercial real estate, it is closely related to urban cities and highly-developed suburbs. Fred is a commercial property expert in Loudoun County VA. Let me help you find your next purchase of lease property in Northern VA.
Commercial real estate is usually situated at the heart of the urban jungle, where work opportunities are at large. This feature attracts many people to live in it. Fred’s Properties is a top agent in Northern VA to locate Commercial real estate for sale in Loudon, VA.
Although developed suburbs, especially those nearby cities like Washington D.C., New York, Manhattan, have higher cost of living, the average pay is also definitely higher.
Here in Virginia, one of the best hotspots for buying business property, flipping commercial real estate, or leasing and selling commercial space is in Loudoun, VA. Loudoun is the richest county in Virginia and the whole US according to a Patch report last January 2020. A typical household earns about $136,268 a year! That is why there are also lots of luxury homes in the area.
In an October 2019 report, Loudoun, VA also had a lower unemployment rate compared to the nationwide statistic. That is 2% compared to the State’s 2.6%. In addition to that, its proximity to D.C. and the Dulles high-tech corridor has also attracted more families to live here.
Forbes wrote, “A commuter county located 25 miles west of Washington, D.C. and the Pentagon, Loudoun County residents have the option of commuting into the city or taking advantage of the impressive job market growth at home.”
But of course, even the wealthiest local economy has not been spared by the economic downturn brought by the pandemic. With that, many businesses have suffered big losses and the question of commercial real estate profitability came in.
What is commercial real estate?
People have been asking whether buying a commercial building is a good move and are concerned about debt issues when holding on to these properties.
That is why we get a lot of requests from owners on how to sell my commercial property. There are also questions on current commercial property prices.
But before we get into that, let’s first define what commercial real estate is.
Commercial real estate are properties used to generate profit. It can be an empty lot, a fully furnished office, small warehouse, warehouse office space, and many more. These are usually bought as investment and most owners lease these properties to create income.
On the other hand, some businesses buy commercial space instead of renting out.
There are different types of commercial real estate but we will only discuss the three most common types.
First is an office space used by corporate businesses as well as start ups. An office space can be differentiated into different levels. Class A buildings have a fully furnished office space with high-end amenities. These are usually used by wealthy corporate companies. But now, Class A office space has become vacant premises with businesses laying off people and the current work-from-home setup.
Class B is your deteriorated Class A space that is rented at a more affordable price. During this pandemic, Class B buildings are thriving since these are cheaper and are available as coworking spaces. These can also be rented out for specific periods of time if needed.
Class C is more commonly used by startup businesses since this is like a small warehouse. They’re affordable and provide sufficient space to do daily activities. A Class C building can also be bought for redevelopment or flipping commercial real estate to adjust to market’s demands.
Second is retail commercial real estate which is mainly for product selling. Loudoun has a wealth of shopping centers in the area where you can see these properties. For one, it is home to the Leesburg Corner Premium Outlets with over a hundred upscale designer and brand name outlet stores.
Last, we have industrial commercial real estate which is actually a booming business thanks to e-commerce. This includes warehouses with offices, warehouses with drive-in, large warehouses for distribution centers, and others. Basically these are your warehouse buildings which serve as short term and long term manufacturing hub and storage facility.
What is the current status of commercial real estate? Is it still profitable?
As mentioned, the current status of commercial real estate is not good. CBRE Group Inc, a commercial real estate services company, projected that office and retail will still suffer from losses this 2021 and will expect a bounce by 2022.
But if you would still like to venture investing on commercial space, the best for now would be industrial commercial real estate.
This is because with the increasing consumer demand, most logistics companies need to make space for more packages and parcels. With that, warehouse buildings and other related properties would be very important assets.
These warehouse buildings are currently on sale and also available for rent. Let us help you find and negotiate your next deal with any size property here in Loudoun, VA.
The cost of warehouse space generally depends on the size. It starts at 1,000 square feet warehouse up to 10,000 square feet warehouse.
If you’re looking for a Flex Warehouse for sale in Loudoun, VA or a bulk one or maybe cheap warehouses or warehouses for sale for investment, we can find them for you.
Currently, there are more industrial properties available for lease than for rent.
How to rent, sell, or buy commercial real estate?
Unlike residential real estate or luxury real estate, processes involved in commercial real estate are considered more complicated. That is why in order to scout good options and cut the best deal, it’s important to hire top commercial real estate brokers or commercial property estate agents.
This is because these groups and individuals are more adept in handling transactions like this. Additionally, they have a wider network of connections which can help in looking for potential buyers and sellers.