Commercial Real Estate Investing in 2018

As 2018 approaches, now is the time to start planning your investments for the new year. It’s also a perfect time to consider the many commercial real estate investment opportunities in Gainesville, FL. Front Street Commercial Real Estate Group is a boutique commercial real estate firm with decades of experience in our local real estate market and other markets throughout northern Florida. Our dedication is to our clients who in turn receive superior results with every transaction. To boost your investment portfolio in 2018, contact our office today!

Trends To Look For In Commercial Real Estate

The thing about trends is when it comes to commercial real estate, the more local you begin to look, you’ll see the large-scale, nationwide trends don’t always apply. This is quite true for commercial real estate throughout Gainesville, FL. While the experts expect a slow down in the coming year nationally, things are picking up in our area, making it a great time to invest in Gainesville’s growth.

Retail Openings Instead Of Closings

Though consumers lean on online shopping sites for many of their retail transactions, the retail industry saw more openings than closings in 2017. This trend included new buildings along with openings in existing buildings. The increase in retail openings also translates to rising returns for investors, with rents expected to grow between two and three percent for retail assets in 2018.

Check out these Gainesville commercial real estate retail listings:

Internet of Things

The Internet of Things was a driving trend in 2017 and is expected to continue to drive 2018. Building operation efficiencies are monitored through sensors and cloud computing in real-time, allowing property managers to pinpoint and fix any issues before they become problems. Plus, commercial real estate which is developed and/or designed to handle the Internet of Things is more likely to be appealing to businesses who also rely on it.

Office Space Evolution

Offices across the country are evolving from traditional designs and Gainesville is no different. Businesses are looking for offices which foster productivity for the business itself and their employees. In return, these wants are creating offices with flexibility, green design, and smart office space — space that is functional and ergonomic. Even if the current tenant of these spaces leaves, as long as the office space is flexible and functional, Front Street Commercial Real Estate Group will be able to quickly transition to another tenant. To get in on the Gainesville office space evolution, check out these properties we have available:

Popular Property Areas In Gainesville

It’s hard to pick even a handful of the popular property areas in Gainesville, FL for investors. As a boutique commercial real estate firm, Front Street Commercial Real Estate Group knows the ins and outs of every area and why it would be perfect for your investment. Our team has seen first-hand the success of commercial real estate along Newberry Road, especially those at Newberry Road and Interstate 75. Or there are the many businesses and establishments along Millhopper Road, used by thousands of residents every day of the week. There isn’t one property area in Gainesville better than another and we can show you the one property best suited to your investment goals. Contact our office today!

Investment Opportunities In Downtown For Downtown Revitalization

Downtown Gainesville is in the midst of a multi-year revitalization, but don’t take our word for it. It’s easy to see why as it’s a hub of activity day and night. During the daytime, thousands of people work downtown or within walking distance at Gainesville City Hall, Innovation Square, and the University of Florida, enjoying the variety of entertainment and dining options throughout the downtown area. As Gainesville proper and the downtown revitalization continues to grow, Front Street Commercial Real Estate Group has several downtown properties available that are perfect for any investor.

Hotel & Upscale Restaurant

This retail property is a prime opportunity for an investor with an eye to catering to the many people who descend on downtown for the weekly events at Bo Diddley Plaza and Depot Park along with the large art and music festivals throughout the year. With frontage on South Main Street, this property has access by foot and vehicular traffic and ample parking in the surrounding area.

Downtown Office Building

As many companies and businesses have flocked to suburbs in larger cities, businesses in Gainesville have reversed this trend. And why not? With a variety of restaurants and entertainment options that continue to expand, businesses have recognized there’s more to do than just work downtown. A 9,000 square foot office building on the corner of NE 1st Street and NE 2nd Avenue is an exceptional location for a business which also hosts meetings and conferences. Featuring multiple conference rooms, this office building is within mere minutes on foot to many of downtown’s best restaurants, giving your meeting and conference attendees the chance to see the Downtown Revitalization for themselves!

Investment Opportunities For New Construction Areas

We’d be remiss if we didn’t mention the investment opportunities for new construction in our growing city. Whether you’re looking to invest in a flourishing area near one of the nation’s largest universities or an up-and-coming residential and commercial area, Front Street Commercial Real Estate Group is the boutique commercial real estate company for your investment goals.

Archer Road Development

Located along one of Gainesville’s most frequently traveled roadways, this property has the opportunity for several types of business. Zoned for hotel, retail, restaurant, and mixed-use, it has a 3,600 square foot, single story building currently on the property and is within walking distance of the University of Florida campus, UF Health and VA Hospital complexes.

Jonesville Plaza

Minutes from Interstate 75, this property sits near several established businesses, including a high-performing Publix Supermarket in suburban Gainesville. Jonesville Plaza is 65 mixed-use acres of land combining visibility, accessibility, and affluent demographics, making it a pristine investment opportunity for new and seasoned commercial real estate investors.

Investment Tips For Commercial Real Estate

Investing in commercial real estate comes down to the terms of the deal and the return on investment. Though there are a lot of tips for even a seasoned commercial real estate investor to mull over, here are three key ones we recommend for everyone.

Study The Neighborhood

As with any investment, you’ll want to do your homework and study any Gainesville commercial real estate before investing. After all, your money is at stake and the overarching goal is to grow that money with any investment. Talk with other property owners in the neighborhood for on-the-ground insight and visit prospective properties during open houses if possible.

Understand Commercial Real Estate Metrics

The metrics for commercial real estate are different than residential real estate. A few of the basic ones to understand include:

Net Operating Income (NOI)

Your NOI is found by subtracting the first year operating expenses from the first year gross operating income. Ideally you’ll have a positive NOI.

Cap Rate

A property’s capitalization rate calculates the value of income-producing properties. These rates estimate net present value of future profits or cash flow. An example of a property which uses a cap rate is commercial office building.

Cash On Cash

This formula compares the first-year performances of competing properties. Cash-on-cash accounts for an investor not being required to use 100 percent cash to buy a property and that they won’t keep the entire NOI due to mortgage payments.

Get To Know Other Investors

There is a lot of information available to investors of commercial real estate in Gainesville, but getting to know other investors is invaluable. They’ll have the experience you don’t yet have and ability to give advice and insight for many situations to help you avoid headaches as an investor.

A Great Property Manager Is Important For Investors

A great property manager can be priceless for investors. They’re skilled and trained to identify market changes and have the resources to help you monitor asset performance either continuously or on a need-to-know basis depending on your preference. But the reasons to team up with a Gainesville commercial real estate company like Front Street Commercial Real Estate Group don’t stop there.

Benefits Of A Property Manager

There are many benefits of working with a commercial property management company as an investor. As an investor, ofttimes you have many things to focus on in your life and would like to check in on your investment from time-to-time, not every day. Enter Front Street Commercial Real Estate Group.

Screening

Our experience in property management through the years has given us a lot of insight and skills, both of which allow us to see potential red flags on applications. By having a thorough screening process you can be assured of a reliable tenant when you partner with Front Street Commercial Real Estate Group.

Point Of Contact

Property managers take care of problems around-the-clock, from fielding the calls from a tenant to scheduling a repair or replacement for the problem. And as the point-of-contact, we’re able to handle the calls and emails which would otherwise consume much of your day instead.

Turnover Decrease

Front Street Commercial Real Estate Group knows how being responsive, available, and courteous to all our clients helps reduce turnover, so that’s why we continue to follow our own lead.

On-Time Rent Payments

To have a return on your investment, part of the process is ensuring on-time rent payments. A Gainesville property management company will have procedures in place for rent collection and procedures to handle late and/or non-payment situations so you as an investor won’t have to worry about it.

Reduces Your Stress

If you’d rather spend your day – and nights – focusing on other interests, working with a property management company such as us is a great way to reduce your stress as an investor. Let Front Street Commercial Real Estate Group handle the daily property and tenant management duties and instead reap the benefits of your partnership without headaches.

How To Find A Great Property Management Company

As an investor, you know the return you want from any commercial real estate in Gainesville. But if you’re new to commercial real estate investing, finding a property management company who listens to and works with you is crucial. Front Street Commercial Real Estate Group apply their extensive knowledge to every detail of our relationships with investors and tenants alike.

Get Referrals

Referrals often help people find quality service in many areas of life, including property management Gainesville, FL. If you have friends who have already invested in commercial real estate in Gainesville, ask them which company they’d recommend working with. Should they not have any recommendations and you begin searching on your own, make sure any prospective manager is licensed in Florida and has no outstanding complaints against them. Two sources to check are the Florida Division of Real Estate and the Better Business Bureau.

First Impressions Count

Try to schedule in-person meetings with prospective property management companies. Besides the hard information such as a number of properties and price points, keep in mind how the company presents itself. Do they understand every facet and nuance to their role? How do they speak of their clients? It's worth putting yourself in the tenant's shoes during these meetings.

Correlation Between Investments & Property Condition

Any time you invest, such as in commercial property for sale Gainesville, FL, you want to at least meet if not exceed your required return on investment (ROI). This is where a property condition assessment (PCA) comes in. A PCA, much like a residential home inspection, determines the property’s condition and what costs will be needed to maintain it in the coming years. As an investor, a PCA is a fundamental part of the due diligence process before finalizing a property to invest in. Generally speaking, a PCA will include information on:

  • Property description
  • Site information such as topography, paving and parking, and utilities
  • Structural frame
  • Electrical and mechanical systems
  • Interior elements such as common areas and tenant spaces

You’ll want to know what the short- and long-term capital expenses for the property will be. Too many expenses and it may be harder to find long-term tenants to stay and a low, if any, return on investment.

Commercial Real Estate in Gainesville

Most commercial real estate firms can help you with an investment property, but the difference between firms is readily apparent in service and results. When you work with Front Street Commercial Real Estate Group, you receive dedication, service, and results that are second-to-none. Our team specializes in leveraging our decades of experience and knowledge of the Gainesville and northern Florida commercial real estate markets to give you a return on investment which surpasses your expectations every time.

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Virginia MacKoul

Virginia is a graduate from the University of Florida's College of Design Construction and Planning with a degree in Sustainability and the Built Environment, and a minor in Urban Regional Planning. Virginia joined the Front Street team in 2011, as an intern. Upon graduation, Virginia joined the Front Street team full-time as the Director of Client Services. Ms. MacKoul’s addition furthers Front Street’s continued growth and expansion within Gainesville and other North Central Florida markets. She was promoted to Director of Marketing in 2014 and now manages the firm’s team of interns and oversees all marketing and branding activity. Virginia was born in Boston and moved to Lee County, Florida in 1997. Virginia graduated her high school's International Baccalaureate program and started at the University of Florida with a focus on Architecture. Virginia shares Front Street's passion of giving back to the community and those in need. Virginia's hobbies include photography, cooking, football, movies, music, and spending time with her dog, Brinkley.

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