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.