Charlotte has a thriving market for commercial properties. Here’s what you need to know before making an investment.
Examples of Commercial Properties
Commercial properties can be classified into the following categories:
- Retail. This includes properties suitable for restaurants and storefronts. These spaces can be multi-tenanted properties, usually with an anchor or a lead tenant that drives foot traffic to the area. Anchors are often major national retailers including supermarkets, pharmacies, warehouse clubs, and department stores.
Retail spaces can also be single-use properties or standalone buildings that house a single store or restaurant. Single-tenanted buildings can be big box centers, which are typically leased to national chain stores like Walmart, Best Buy, or Target. They can also be pad sites or single-tenanted buildings located within shopping centers, that are often leased to banks, drug stores, or restaurants.
Retail properties are complex – the type of shopping center is determined by various factors, including size, concept, number and types of tenants, and trade area. Examples of shopping centers include a community center, strip center, regional mall, or power center.
Some of the most successful malls in Charlotte include Ballantyne Village, Blakeney Shopping Center, Promenade on Providence, South Park, Northlake Mall, and Charlotte Premium Outlets.
- Office. Office buildings fall under two categories, namely urban or suburban. As the name suggests, urban offices can be found in cities. These include skyscrapers and high-rises, with some encompassing a few million square feet of space. Some of the best-known office buildings in Charlotte include the One Wells Fargo Center and the Bank of America Corporate Center.
Suburban offices are often smaller and are usually grouped into office parks. One example is the Toringdon Office Park just off I-485 and Johnston Road.
Office buildings can either be single-tenanted or multi-tenanted, and the vast majority are build-to-suit, meaning they are constructed according to the would-be tenant’s specifications.
These buildings are classified into three tiers:
- Class A. These include the most coveted buildings that attract premier office users. Rents are usually above average for the area. Class A buildings often have high-quality finishes, sophisticated systems, great accessibility, and a strong market presence.
- Class B. These buildings compete for a wide range of office users, offering rental rates that are about average for the area. Although Class B buildings don’t compete with their Class A counterparts for the same prices, they feature fair to good standard finishes and adequate systems.
- Class C. These include office buildings that offer functional spaces that rent for less than the average in the area.
- Undeveloped land – Raw land
- Infill land – Land that has been developed but which currently stands vacant
- Brownfield land – Land that has been used for industrial operations and is currently available for re-use
Advantages of Investing in Commercial Properties in South Charlotte
There are many reasons to invest in commercial property.
First of all, they bring in greater earning potential and cash flow compared to residential property. Leasing the property out to multiple tenants also lowers the chances of you losing your whole rental income for an entire month.
Moreover, landlord-tenant relationships are governed by iron-clad lease agreements between two businesses, making them more professional and predictable.
If you’re interested in commercial property in Charlotte, NC, call me, Julie Anselmo, at 704-576-8050, or send an email to Julie(dotted)Anselmo(at)EXPRealty(dotted)com .