If you’re looking to hire a property manager, there’s a lot to consider, and the importance of property management in commercial real estate cannot be overstated.

As a property owner, deciding whether to hire a property manager is crucial. There’s a lot to consider (and as an early note, if you don’t want to worry about all of this alone, I highly recommend reaching out to us to help you).

That said, this blog post explores the pros and cons of engaging a professional property management company, factors influencing fees, and tips for selecting the right manager – so let’s dig in.

The Pros of Hiring a Property Management Company

Expertise in handling property management tasks

One of the main reasons to hire a property manager is their expertise in managing commercial real estate and managing rental properties.

Property managers are well-versed in the day-to-day operations of commercial properties, including collecting rent, managing tenants, and handling maintenance requests. They also have a deep understanding of the local real estate market, which can help you set a competitive rent price.

Network of Contractors & Support Personnel

A good property management company will have an extensive network of reliable contractors, suppliers, and support personnel. This means that they can quickly address maintenance issues and provide high-quality services at competitive prices.

In addition, experienced property managers can often negotiate better deals with contractors due to their volume of business.

Tenant screening and management

Hiring a property management company means that they will handle the tenant screening process, ensuring that only qualified tenants occupy your commercial property.

This can save you time and minimize the risk of problematic tenants. Additionally, property managers are experienced in handling tenant disputes and can help maintain positive tenant relationships.

Compliance with laws and regulations

Property managers are knowledgeable about the various laws and regulations that apply to commercial real estate properties. They can help ensure that your rental property complies with all relevant rules, minimizing the risk of legal issues.

Maximizing rental income

An experienced property manager will be able to help you set a competitive rent price and minimize vacancies in rental units. They can also help you make strategic improvements to your property, attracting higher-paying tenants and increasing your rental income.

The Cons of Hiring A Property Management Company

Property management fees and costs

One of the main drawbacks of hiring a property management company is the associated cost. Property management service fees can vary based on the services provided, the size and location of your property, and the management company you choose. It’s essential to carefully consider the property management fees and weigh them against the potential benefits.

Potential lack of control for property owners

By hiring a property management company, you may feel a sense of reduced control over your commercial property. Some property owners may struggle with delegating the responsibility of managing their property to a third party.

It’s essential to establish a strong working relationship with your property manager and maintain open communication to alleviate this concern. It’s also worth remembering that your time is valuable, and giving up some control to a trustworthy property management company can free you up to focus on other things.

Possible conflicts of interest

Some property management companies may manage multiple properties, which could lead to potential conflicts of interest. For example, a property manager may prioritize one property over another due to higher commissions or a personal relationship with a specific property owner. Because of this, it’s crucial to carefully research property management firms and interview potential property managers to ensure their commitment to your property’s best interests.

Varying quality of service among property managers

Not all property managers are created equal, and the quality of service you receive can vary significantly from one manager to another.

You should always carefully research and interview potential property managers to ensure you find a professional who will provide high-quality service and meet your expectations.

Factors that Affect Property Management Fees

Property size and location

The size and location of your commercial property can have a significant impact on property management fees. Larger properties or properties located in high-demand areas may command higher fees due to the increased workload and complexity involved in managing them.

Services provided

Property management fees can vary based on the services provided by the management company. Some companies offer comprehensive packages that include everything from rent collection to maintenance, while others provide more limited services.

Be sure to discuss the specific services included in the fees and any additional costs that may arise.

New Tenant Placement Fees

Some property management companies charge a separate fee for finding and placing new tenants in your commercial property. These fees can be a flat fee or a percentage of the first month’s rent.

Be sure to discuss these fees with your prospective property manager and factor them into your overall property management costs.

Leasing and maintenance fees

Leasing and maintenance fees can also affect your property management costs. Some property managers may charge a flat fee for leasing services, while others may charge a percentage of the monthly rent.

Maintenance fees can be either a flat monthly fee or based on the actual cost of repairs and maintenance performed.

It’s crucial to understand the fee structure and any additional costs before signing a property management agreement.

What Are The Benefits Of Hiring A Property Manager?

Time savings for property owners

One of the most significant benefits of hiring a property manager is the time savings for the real estate investor and property owners. Managing a commercial property can be time-consuming and stressful, especially if you own multiple properties.

By hiring a property manager, you can delegate these tasks and focus on other aspects of your real estate investment or business.

Stress reduction

Managing tenants, handling maintenance requests, and dealing with other property-related issues at own properties can be stressful.

Hiring a property manager can significantly reduce the stress associated with managing commercial properties, allowing you to enjoy the benefits of your investment without the headaches.

Better tenant retention

A professional property manager can help improve tenant retention by promptly addressing their needs and concerns.

This can lead to longer lease agreements and fewer vacancies in rental properties, which can ultimately result in higher rental income.

Lower maintenance costs

Property managers can often negotiate better deals with contractors and suppliers due to their volume of business managing multiple properties.

This can result in lower maintenance costs for your commercial property.

How to Hire a Property Manager

Assess your needs and goals

Before hiring a property manager, take the time to assess your needs and goals for your commercial property.

Determine the level of involvement you want to have and the services you require from a property manager. This will help you find a property management company that aligns with your needs and expectations.

Check Reviews and Online Presence

Research prospective property managers by checking their online presence, including their website and social media profiles.

Look for client reviews and testimonials to get an idea of their reputation and the quality of service they provide.

Interview Prospective Property Managers

Interview multiple property managers to ensure you find the best fit for your commercial property. Ask about their experience, services offered, fees, and how they handle common property management issues.

It’s also essential to ask for references from current or past clients to get an idea of their performance and reliability.

Review Property Management & Lease Contracts

Before signing a lease agreement or property management agreement, carefully review the contract terms, including fees, services provided, and termination clauses. Ensure you understand the property management fee structure, lease agreements, and any additional costs or responsibilities.

Frequently Asked Questions about Property Management

Answers to the questions provided in the instructions

• What is a property manager’s first responsibility to the owner? A property manager’s first responsibility is to protect the owner’s investment by effectively managing the property and maintaining its value. This includes finding and retaining tenants, collecting rent, overseeing maintenance, and ensuring compliance with laws and regulations.
• How often should a property manager inspect the property? The frequency of property inspections can vary depending on the property manager and the specific needs of the property. Generally, it’s a good idea for property managers to conduct inspections at least once or twice a year, or more frequently if there are ongoing maintenance issues or tenant concerns.
• What is the average property management fee for commercial properties? The average property management fee for commercial properties typically ranges from 4% to 12% of the monthly rental income, depending on the size and location of the property, the services provided, and the management company. Some companies may also charge additional fees for leasing and maintenance services.
• Can a property owner terminate a property management contract? Yes, a property owner can terminate a property management contract. However, the specific process and terms for termination will depend on the agreement between the property owner and the property management company. It’s essential to review the termination clauses in your contract and ensure that you follow the proper procedures to avoid any legal issues or penalties.

Conclusion

Weighing the pros and cons of hiring a property manager for your commercial real estate investment is an important decision that depends on your unique situation and needs. By considering the benefits, potential drawbacks, fees, and the process of hiring a property manager, you can make an informed decision about whether property management services are right for your investment property.

Remember to thoroughly research and interview prospective property managers to ensure you find the best fit for your commercial property and have a successful partnership.

And if you’re ready to start looking for a property management company, call us. Speed Commercial Real Estate always provides high quality property management services and valuable experience.

When considering renting commercial real estate in Jackson, MS, multiple factors should be taken into account. To find the perfect space, it is essential to have a thorough understanding of the market and establish realistic expectations.

With much to consider when renting Jackson, MS commercial real estate, navigating the process can feel overwhelming at times. We hope to give you a variety of helpful tips and things to think about so that you can be as successful as possible in your search!

Tips for Finding Buildings for Rent in Jackson, MS

When you’re choosing a place to rent for your business, it’s important to think about every aspect of it— the good and the not-so-good. The following are some things to keep in mind:

Find the Right Location

Try to find a walkable location near public transportation if you plan to sell things like clothing or food.

If your customers are tourists or others who will be using their cars extensively, make sure there’s easy highway access nearby. You may also want to choose a location with ample parking, so customers can come in without worrying about where they’re going to park.

For office space in Jackson, MS, consider how easy it is for employees to get to work. Can they easily take public transportation or the highway? Do they have a safe place to park their car for 8 hours?

Research the Property Management Company and Building Owner

Owners of commercial spaces will often hire a property management company to handle things like rent collection, maintenance, lockout services, cleaning, and other everyday tasks. It’s important that you know how well these two parties work together.

For example, if a property management company doesn’t quickly handle maintenance requests, that could create an issue for your business. Or if the building owner doesn’t pay their mortgage on time, you could be at risk of losing your space.

Research the management company and owner online and talk to other tenants and neighbors. This will help you seek out the red flags and avoid getting into a situation that’s bad for business!

Check Local Zoning Laws

Local zoning laws may set limits for how you can operate your business. Do not assume that the building owner or property management company understands zoning laws.

A landlord may assume their building can be used for a certain type of business – say, a restaurant – only for you to realize that local zoning laws don’t allow it. Doing your own research will help you avoid legal confrontation with the local government.

Consider Lease Terms

When you find the perfect Jackson, MS commercial real estate building, it can be tempting to quickly sign the lease, so you can get all settled in. However, it’s important to carefully consider the terms of your lease.

• What is the duration of the lease? A typical commercial real estate lease lasts for 5-10 years, but that might not be ideal for your business. A shorter lease with the option to renew at the end may give you greater flexibility.
• What is included in the lease? Check to see if your rent includes any building-related expenses, taxes, insurance, and operating expenses that may increase over time. This will help you plan for expenses now and in the future.
• Can you renovate the space? Depending on the type of business you operate, you may want to change changes to the building. Make sure you understand which changes you can make, who will pay for them, and who will own the products used when your lease ends.
• What happens if you need to break the lease? Things happen in life and business that we can’t predict, and you may need to get out of your lease early. Be sure the terms of doing so are clearly defined, understand exactly what you will have to pay, and negotiate other options. For example, you may be able to break the lease without any penalties if you find someone to sublet the space to. If subletting is not included in the lease when it’s presented to you, ask for it to be added and negotiate the terms.
• What kind of insurance do you need? Insurance is critical when it comes to buildings for rent in Jackson, MS. Your lease should clearly spell out which types of insurance are included (if any), what they cover, and who will pay for them. This also might mean you should have your property appraised, so you understand how much protection it needs.

In addition to understanding what you should consider when renting retail, restaurant, or office space in Jackson, MS, you can take advantage of some tools that will help make the search process easier.

Tools for Renting Jackson, MS Real Estate

These tools can help you find buildings for rent in Jackson, MS that fit your needs and budget.

Online Search Platforms

Building owners and property management companies often use commercial real estate portals to post vacant space. You can search by location, space size, building details, and more.

Real Estate Lawyers

Real estate lawyers who specialize in commercial properties are your best resource for understanding the terms of your lease. They will be able to read the fine print and ensure you aren’t taken advantage of. They can also negotiate terms in your best interest, so renting office space in Jackson, MS is a mutually beneficial agreement between yourself and the landlord.

Real Estate Agents and Brokers

Talk with your local commercial real estate agent about the things that are important to you. They’ll know what locations and features will attract the kind of business you want and will be able to help you navigate through the complex terms of commercial leases.

Try to find someone who has connections with other businesses in the area, too—they could give you some insight into what’s right for your market and how the location stacks up against its competition nearby.

Contact Speed Commercial Real Estate

Speed Commercial Real Estate is here to help you find commercial properties for rent in Jackson, MS, and make sure you get the best deal possible. We’ll help you set up meetings with owners and answer any questions you have about pricing or negotiating terms. Contact us when you’re ready to rent Jackson, MS commercial real estate space!

 

For the last few years, it has felt as though the future of commercial real estate (CRE) investment is uncertain. In 2020, we saw the sale or lease of many office and retail spaces that transitioned to remote operations. Last year, we watched interest rates and inflation rates increase. And through it all there has been supply chain disruption that stalled the construction of new buildings and renovation of old ones.

However, in 2023, commercial real estate prices are expected to decline, strong job growth will likely put organizations and employees in better financial positions, and investment strategists project to see a decrease in inflation rates throughout the year.

The projected economic shift will change how commercial real estate investors manage their portfolios this year. To get a better idea of how the coming months will affect your investments, let’s look at 10 commercial real estate trends for 2023.

10 Commercial Real Estate Trends to Watch in 2023

Smaller properties with shorter leases are preferred

Many organizations that previously required multiple floors of office space have transitioned to remote or hybrid work structures. As such, they now need space that can meet their flexibility requirements.

Instead of tens of thousands of square feet for offices, conference rooms, break rooms, “bullpen” space, kitchens, waiting rooms, and more, tenants now seek just enough space for the necessities. Additionally, because flexibility is key, many organizations will prefer to rent from landlords that offer short-term leasing options

Cost-cutting technology

Although we expect to see a brighter financial future in commercial real estate, investors will continue to seek opportunities to cut costs. Technology that automates manual processes, controls building operations (HVAC, security features, etc.), and tracks spending/income will become non-negotiables in commercial real estate investments.

Prioritizing ESG considerations

Sustainability is at the forefront of our society, permeating all sectors of business. Savvy commercial real estate investors are making it a point to consider environmental, social, and governance (ESG) when purchasing, building, and operating properties.

According to PIGM survey data, an estimated two-thirds of CRE investors and fund managers have implemented ESG criteria into their investment strategies. PIGM expects that number to increase in the coming years.

Capital recycling

Rising interest rates and increasingly strict lending requirements have made it difficult for some investors to find financing opportunities. The H1 2022 Cap Rate Survey found that these CRE investors are concerned that tighter underwriting and lending assumptions will continue to stunt their portfolio growth.

As a result, capital recycling, or the process of using existing assets to fund new investments, has become more popular in the CRE investment industry. For investors without much liquid capital, this can be a good method of maximizing returns.

Repurposing malls

The decline of malls certainly is not a recent trend. However, it appears that CRE investors are beginning to get creative with these stagnant retail spaces housed in massive buildings. According to NAR’s 2021 Q1 survey, nearly 40% of respondents said that local malls are being repurposed into multi-use properties, including office, retail, and residential spaces.

Furthermore, a quarter of respondents said that malls would make suitable fulfillment centers or industrial spaces. As we continue to see an increase in online retail sales, especially from Amazon, cities throughout the United States will likely need these vacant malls to store goods, pack boxes, and ship orders.

The return of urban multifamily housing

During the pandemic, millions of people felt uneasy in crowded cities or simply didn’t need to live there anymore because their organizations transitioned to remote work. So, they flocked to the suburbs.

As companies return to work, public health concerns subside, and strong job growth persists, we see that workers have the desire to move back into urban areas. Investments in multifamily properties have been increasing by 56% year-over-year to reach $63 billion in Q1 of 2022, which is the strongest first quarter the sector has ever seen.

A rise in ghost kitchens

Ghost kitchens are facilities that prepare and deliver food with no intention of serving customers in-house. This was many restaurateurs’ answer to strict dining guidelines brought on by the pandemic – they can still make and serve food without the cost of hiring a staff, decorating and maintaining a restaurant, etc.

This allows commercial real estate investors to lease smaller buildings to restaurant owners because there is no need for a dining room.

More operational real estate

Operational real estate, like student housing, senior living facilities, and storage units, is growing in demand. Total CRE investing in operational real estate nearly doubled from 2020 to 2021, taking just over 12% of the Annual Global Investment Volume pie.

As a growing number of Americans need healthcare, student housing, and storage options, operational real estate will continue to be a popular and profitable sector.

A rise in digital economy properties

Digital technologies, such as cloud computing and storage, are in high demand. With businesses in every sector adopting such technologies en masse, there is a growing need for data centers that can house servers and networking equipment.

Although the current semiconductor shortage could impact the operations and new development of data centers, the United States is currently working to become a leader in microchip manufacturing. Plans to build semiconductor factories in Arizona, Ohio, and New York are already underway.

Prioritizing cybersecurity

Real estate investment transactions have always required significant due diligence before closing on an asset purchase or lease agreement, but cybersecurity concerns add another layer of complexity for investors looking to protect their interests going forward.

Kaspersky found that a cybersecurity breach cost enterprises an average of $1.4 million in 2021. While this is bad news for large corporations, small businesses can be completely devastated by such an attack. Investors must prioritize the use of best-in-class security standards to protect themselves, their tenants, and their portfolios.

Commercial Real Estate in Jackson, MS

As you can see, several changes that should make their way into the commercial real estate investing market over the next year. If you’re looking to sell or buy commercial property, it’ll be worth keeping an eye on these trends to understand how they might affect your business.

Speed Commercial Real Estate is here to help first-time commercial real estate investors navigate the coming changes in the industry. Contact Speed Commercial Real Estate if you are interested in investing in commercial real estate in the Jackson, MS area.

 

Knowing how to buy commercial real estate opens your world up to incredible investment opportunities. Many people around the world, including Shark tank mogul Barbara Corcoran, attribute their high net worth to real estate investing. In Corcoran’s case, she grew her real estate agency into a multi-million-dollar empire, which began with $1,000 she secured with a loan.

Buying commercial real estate can be a tricky business. It involves a lot of research and negotiation and often requires professional advice from an expert consultant or attorney.

In this article, we’ll take a look at some of the things you need to know before you decide to buy commercial real estate in your area.

Reasons to Buy Commercial Real Estate

Before you learn how to buy commercial real estate, you should understand the benefits of doing so. This will help you find your motivation for buying, which can drive passion into your career.

There are many reasons why so many people choose to invest in commercial real estate:

• The potential for high returns. Commercial property values tend to appreciate more quickly than residential property values, which means you can make more money as an investor.
• The ability to diversify your investment portfolio. Investing in commercial real estate offers a way to diversify your investment portfolio with an asset that has different risks and rewards than stocks or bonds.
• An alternative source of income. Commercial real estate investments can offer income from rents, leases, and other sources such as tenant improvements, leasing commissions, and management fees from property management companies.

Buying commercial real estate is a great way to provide for your family, achieve personal financial freedom, retire early, and leave a legacy behind for your family.

How to Buy Commercial Real Estate

After you understand your motivation behind commercial real estate investing, you can learn how to buy! Here are a few steps you can take to purchase the right property and see the best return:

Choose a Market

The five main commercial real estate markets are office buildings, retail spaces, industrial properties, multifamily housing, and hospitality.

• Office buildings commonly have conference rooms, private spaces, and common areas so employees can interact with each other while they work on projects. There are small office buildings that can house one tenant or business, mid-sized buildings that can hold a few different tenants, and high-rise buildings that can host dozens of tenants at once.
• Retail spaces are one of the most common types of commercial real estate investments because they can be bought in many different sizes and price ranges, from small mom-and-pop shops to large shopping malls with multiple tenants and lots of foot traffic.
• Industrial properties include warehouses and manufacturing facilities.
• Hospitality buildings host restaurants, entertainment centers, hotels, and short-term rentals (like Airbnb).

Get Pre-Approved for Financing

If you want to buy commercial real estate, it’s important to have a lender who knows your credit profile and has approved your loan application before you begin looking at properties. The lender will run a credit check and verify your income and assets to make sure you can afford a loan payment that’s larger than what you currently pay on your home mortgage. This will also let you know what you can afford to buy.

Find a Team of Real Estate Professionals

Finding the right team of real estate professionals involves balancing three factors: expertise, experience, and trustworthiness. You need to find people who are knowledgeable about the industry and can advise you on how to make an investment that will pay off. You also need people who have been in your shoes before — they know what mistakes to avoid, what pitfalls to avoid, and how to get through them if they do happen. Finally, you need people who are trustworthy — if something goes wrong with your investment, you want someone on your side who will go above and beyond for you.

Search for Investment Opportunities

Once you know what kind of building you want to buy, you know what you can afford, and you have a great team of real estate professionals behind you, it’s time to shop around! Search through online listing portals, the classifieds section of the newspaper, Craigslist, and Facebook Marketplace, and talk directly to property sellers.

Although these are all great methods for finding available commercial properties, your best bet will be to utilize your brokerage. Commercial real estate brokers have access to listings and data that you might not be able to find on your own. Additionally, they will listen to your unique needs and find a property that perfectly aligns with what you’re looking for.

Speed Commercial Real Estate Consultants

Speed Commercial Real Estate is here to help first-time commercial real estate investors navigate the tricky industry. We can make our best recommendations for properties, help you secure financing, assist with negotiations to get you the best deal, and even help you manage the property after you buy!

Contact Speed Commercial Real Estate if you are interested in investing in commercial real estate in the metro Jackson, MS area. We will stand firmly by your side to provide critical support.

 

Finding commercial real estate for sale in Jackson, MS can be a difficult task – unless you know where to look! There are so many different types of commercial property, so many different neighborhoods, and so many different people also looking for the right property to meet their needs.

In the last decade, Jackson, MS has become a destination for commercial real estate investors. The city is home to the state capital and numerous medical facilities, universities, and colleges, making it an ideal location for businesses in any industry. Jackson is located along the Pearl River and has many young and eager real estate investors looking to capitalize on lower real estate costs, as compared to other US cities.

Tips for Finding Commercial Property for Sale in Jackson, MS

There are many ways to find great Jackson, MS commercial real estate. Here are a few methods that will provide insight into available properties:

Online Commercial Real Estate Platforms

Online commercial real estate platforms (also known as CRE portals) are websites that allow sellers to list properties for rent or sale to a wide audience at once. These sites often have their own listing formats that allow buyers and sellers to interact directly, though they can also be used simply to advertise properties.

The advantage of using an online platform is that it gives you access to thousands of investment opportunities in the Metro Jackson, MS area and beyond. Using a platform like this also makes it easier for investors who aren’t local to find commercial real estate, like office space for rent in Jackson, MS.

Classifieds

If you’re looking for commercial property for sale, the classified section of the local paper is a great place to start. You can find everything from a vacant lot to an entire shopping center in the classifieds! They’re also a good source for short-term rentals and vacant units that may be available for lease.

Although you might assume that newspapers are too old school to find valuable modern listings, there are many property owners who have been in the business for decades. This is a tried-and-true method that still works for people who aren’t used to the internet!

Online Marketplaces

It’s becoming more and more common to list commercial real estate on online marketplaces, like Craigslist and Facebook Marketplace. You can search for properties by location, price, and type of property (apartments, homes, land). You’ll see the number of days that the ad has been posted (or “active”), which tells you how recently it was posted. You can search by location using an area code or zip code. Or if you already know where you want to buy property, enter that address into the search bar at the top of the page.

When searching on Craigslist and Facebook, keep in mind that the listings are not vetted by professionals and may not be accurate. If you find something you like, set up a meeting with the seller to verify legitimacy before making any commitments.

Directly Contact Property Owners

If you know exactly what type of property you want to buy and your price range, one of the best ways to find commercial real estate is by contacting owners directly. This can be done by attending auctions or other events where properties are being sold by their current owners.

You could also check with local banks, mortgage lenders, and other financial institutions to see if they have any foreclosed properties that they need to sell quickly. Finally, if you see a property for sale, you can walk into the building and see if the owner is available for a meeting.

Commercial Brokers

In general, the best way to find a property is through a commercial broker. As the name suggests, a commercial broker is someone who helps people buy and sell commercial properties! The broker has access to a large database of properties that they can search through and find matches based on your criteria. In addition to searching through listings, they may be able to help you connect with sellers who want to sell their properties quickly and at a fair price.

Good brokers know how to negotiate on behalf of their clients, which is why they’re able to close deals quickly — often within days or weeks! They’ll also be able to answer any questions you might have about the property or neighborhood, such as local amenities and transportation options.

Speed Commercial Real Estate Consulting

Commercial real estate is a highly specialized field. You need to know how to find commercial properties for sale, negotiate contracts, and manage the business end of things. There are a lot of decisions that go into buying a commercial property, and you can’t afford to make any mistakes. That’s where we come in.

Speed Commercial Real Estate is here to help you find commercial properties for sale in Jackson, MS, and make sure you get the best deal possible. We’ll help you set up meetings with sellers and answer any questions you have about pricing or negotiating terms.

We also work with contractors who can finish remodeling projects or other improvements once your new building is complete.

Contact us today if you’re ready to invest in Jackson, MS commercial real estate!

 

Many people come to us with the question, “What is commercial real estate?” Often, the people who ask this question are interested in this industry because they want to grow their investment portfolio.

If you’re looking to venture into the world of commercial real estate, knowing what it means and how it can help you grow your business is a good idea. This article will explain a bit more about the industry and how you can find success.

What is Commercial Real Estate?

Investopedia defines commercial real estate (CRE) as “property used exclusively for business-related purposes or to provide a workspace rather than a living space…Most often, commercial real estate is leased to tenants to conduct income-generating activities.”

Commercial real estate can be broken down into several subcategories, which typically are defined by the type of tenant who will occupy the space. The four main types of commercial real estate are:

Office Buildings

Office spaces typically offer larger floor plans than retail properties and may include amenities such as conference rooms, onsite cafeterias, and fitness centers. Office spaces are ideal for companies that need to house large numbers of employees under one roof or require specialized space for meetings or training sessions.

There are three subtypes of office space:

• Class A. These are the best buildings in the office space sector. These buildings rank highly in aesthetics, age, quality of infrastructure, and location.
• Class B. This commercial real estate investment is typically for business owners who want to restore an office building and turn it into a profitable property.
• Class C. These buildings are the oldest (typically 20+ years old), need significant restoration, and are located in undesirable areas.

Retail Spaces

Retail spaces are used by companies that sell products directly to consumers or directly to other businesses. This type of commercial property can range from boutiques with small floor plans to large department stores, making this a good option for investors with any size budget.

Industrial Properties

Industrial properties are often located on large parcels of land with easy access to highways or rail lines. These properties are designed specifically for companies in the manufacturing industry who need lots of space to build equipment or store inventory, but don’t need much else besides power and sewer hookups.

Commercial Real Estate Investment

Commercial real estate investment can be a very lucrative career. There are two ways to make money in CRE:

Direct Investment

When you invest directly in commercial real estate, you purchase a specific piece of property and then reap the benefits. You can own all or part of the building and have control over how it is managed or leased. You can also rent it out yourself or have an agent handle the process for you.

Commercial real estate can be purchased from private owners, banks, or other investors. In some cases, an investment bank buys up large portfolios of properties and sells them to investors. These may be individual pieces (i.e., one retail store) or larger packages (i.e., an entire strip mall).

In other cases, private investors may pool their money together to buy a single building or several buildings at once (known as syndication).

Indirect Investment

Indirect investment in commercial real estate is when you invest through a type of market security, like a real estate investment trust (REIT) or exchange-traded fund (ETF). An indirect investor typically doesn’t deal with the property owner or tenant. Instead, they buy shares of ownership in a company that owns commercial real estate assets across many different locations. The company then pays a portion of its net income based on your ownership share.

Indirect investments are a good way for investors to get exposure to real estate without taking the time and effort to learn about property management or investing in individual properties.

How to Find Commercial Property

There are several ways to find commercial property for sale. Here are the most common methods used by real estate investors and professionals:

Local Publications

Local newspapers and magazines often have articles about new developments and available properties. If you’re looking for a particular type of business space — such as retail or industrial— seek local publications that cover those topics, specifically.

Commercial Real Estate Brokerages

Most cities, especially metro areas, have organizations that specialize in commercial real estate services. Here in Jackson, MS, Speed Commercial Real Estate helps investors with everything from finding the best property, asset management, investment sales, property owner representation, and more.

Speed Commercial Real Estate

Speed Commercial Real Estate is proud to work with real estate investors in Jackson and throughout Mississippi. Our experienced professionals apply market knowledge, cutting-edge technology, and industry expertise to each venture. We strive to keep our clients front and center, which allows us to stay focused on your goals and exceed your expectations.

When you’re ready to invest in commercial property, contact us at Speed Commercial Real Estate. We will walk you through the investment process, explain the nuances of the industry, and help you maximize the return on your investment.

If you are looking to invest in commercial real estate, one of the most overlooked markets may be Jackson, MS. The city of Jackson, and the surrounding areas, have some unique attributes that make it one of the best places to find undervalued, yet very profitable properties.

Jackson has faced some well publicized infrastructure problems in the past, but our research shows that the local real estate market has been vastly undervalued for several years and the outlook for steady, sustained growth looks very promising.

Local Economy in the Jackson Area

The Jackson area economy is a significant hub for commerce, manufacturing, healthcare, government and education. All of these factors combined means that regardless of the ebbs and flows of the economy, Jackson’s diversified economy will always present opportunities to growth oriented real estate investors.

Major industries include food processing, electrical equipment and heavy machinery manufacturing, and fabricated metal production. In addition to these industries, Jackson is home to several major hospitals, universities, and the State Capitol, giving the local economy a steady inflow of capital from numerous and well paying healthcare, education and government jobs.

The mix of diversified industries in the Jackson area makes the local economy recession proof, as well as a place where new businesses are constantly starting and more well established businesses are constantly expanding. Jackson is one of the few markets in the country with such a broad array of businesses that has not yet seen a massive spike in real estate prices.

Population Trends

While the population of the city of Jackson itself has fallen slightly, that is mainly due to a massive influx of population growth in the suburbs surrounding the city. The surrounding area has grown due to both an overall migration to the area as well as an exodus of city dwellers to the suburbs.

Well over half a million people live in the metropolitan area, which has experienced a roughly 10% population increase in the past decade. The slow, and steady growth means that prices have not shot up to unsustainable levels like they have in other well publicized cases such as trendy Austin, TX or San Francisco. This population trend means that investors have the opportunity to buy properties with long term sustainable growth prospects without the problems associated with unsustainable population growth.

Retail and Office Space

Jackson and the surrounding area presents a great opportunity for commercial real estate investors looking to buy retail and office space. As of now, prices are relatively low by national standards, but as the population continues to grow in the suburbs and surrounding areas, prices, as well as rents, are expected to increase substantially.

Cities such as Pearl, Madison, and Ridgeland have experienced a population growth but have yet to see much development in the retail and office space areas. These new residents need new areas for shopping, and the relatively higher paying jobs in the area means opportunities for niche shopping centers as well as staples such as grocery stores and gas stations.

The office space market is in good shape as well. The work from home trend is still intact nationwide, but the type of industry in Jackson does not work well with employees working from home. Tech and marketing type companies can still thrive with employees working from home, but not many of those companies call Jackson home.

The manufacturing and heavier industrial companies that make up the backbone of Jackson’s economy still need their white collar workers to be in the office daily, which means the office space rental market is still very much intact in the Jackson area. Those looking to invest currently are able to pick up properties that are inexpensive by national standards and have high capitalization rates.

Warehouses and Industrial Space

The Jackson area is also one of the premier places for commercial real estate investors. Warehouse and industrial space is relatively inexpensive and demand from tenants is high. In our experience, industrial space investment in the Jackson area is one of the best markets in the country for high capitalization rate properties.

Apartment Buildings

Apartment buildings in Jackson, and especially in the surrounding areas are currently especially lucrative for real estate investors. Again we have seen a real need for housing in the cities of Pearl, Madison and others as the population has increased.

Right now land for new construction is below the national average, current buildings sell at a discount compared to national averages, yet market rents and low vacancy rates means a high capitalization rate for most of the apartment buildings in the area.

Many out of state investors are starting to buy properties in the area as well, so it is unclear how long this opportunity will last. Coupled with the rising interest rates, the time to invest in low risk, high cap rate residential properties may be coming to a close, but currently there are many opportunities so investors would be wise to act sooner rather than later.

Mixed Use Buildings

Mixed use building in the city of Jackson as well as the surrounding suburbs is also an excellent investment opportunity. Housing and retail are needed in the suburbs, and within the city many older but up and coming neighborhoods are ripe for redevelopment opportunities. There are many opportunities for new construction as well as existing properties with current rent paying tenants in and around Jackson.

For Interested Investors

For those investors seriously thinking of purchasing property in the Jackson area, whether you are local or out of state, we highly recommend finding a trustworthy and professional local commercial real estate agent. Someone who knows the market will be able to help you find the best deals as well as negotiate on your behalf to get the best terms possible.

Negotiation is less about being tough and hard nosed than many people think. Successful negotiation means communicating with skill and tact in order to find a solution that works for all parties involved. In addition, a well connected agent will be able to refer you to other professionals in the area such as lenders, insurance agents, vendors and even prospective tenants

Speed Commercial Real Estate has been in business for many years and has helped literally hundreds of investors find profitable commercial property in and around the area.

Property Management in the Jackson Area

For local or out of state investors looking to expand into the Jackson area, finding a trustworthy and professional property manager is one of the most important factors in finding and sustaining a profitable investment.

Speed Commercial Real Estate can help manage your property, or if you are a prospective tenant looking for commercial space, we can help you find the right property for your needs as well.

Our property managers can help you do everything to make the most of your property. From marketing, leasing, maintenance and even market research, we have the knowledge and experience to help you make the most of your property to maximize your return on investment.

Speed Commercial Real Estate offers other services as well to help you thrive in the Jackson area. We can help assist in the design, construction and management of all types of commercial projects, from retail, office buildings and much more.

We have the knowledge and know how to provide consulting services in asset management and many other aspects of the real estate industry.

Land sales are also an area in which we provide tremendous value to our clients. With our knowledge and experience in the Jackson market, we can help you identify the best available land in the area for your unique needs and help bring buyers and sellers together in a way that serves all involved.

We have been serving the Jackson area for over 18 years in all aspects of commercial real estate. If you are an investor looking for opportunities in the area, or a business owner looking for your next home, whether buying or leasing, we can find the perfect solution for you.

Whether you are looking for retail, office, warehouse, industrial, apartment building or any other type of property, we have the experience in this area to do everything from buying, selling, and property management to help you maximize your return on investment.

Give us a call, we would love to meet you and be a resource for you for all of your commercial real estate needs in our home of Jackson.