When buying commercial real estate, the main importance is seeing a return on that investment, as why would you buy something to lose money rather than make it? So, before investing, you carefully consider two things: (1) What you want to buy, and (2) where. There are certain markets that will typically always provide returns on an investment, such as New York, San Francisco and Miami, but with big markets comes big price tags.
What about something a little closer to home? Baton Rouge is a market that should be on the top of every investors list. It’s an area that has seen unbelievable economic development over the past few years, and is on course to expand even further. In this article you will see why buying commercial real estate in Baton Rouge is a very safe and smart investment.
You know the old adage in real estate: Location, Location, Location! It’s a rule we all know, as no one wants to be stuck with a shiny, new commercial real estate asset on a street full of shuttered windows and closed businesses. So, when investing in any sort of CRE, it’s important to do some research and ensure that sound economic conditions not only exist, but are set to strengthen.
Why Buying Commercial Real Estate in Baton Rouge is a Smart Investment: Businesses thrive here.
Just last week Louisiana was ranked as having the fourth best business climate in the nation. States ranked high that “have the right mix of actual project successes and high favorability.” Simply put: businesses want to be here, and when they are here, they see profit.
Why Buying Commercial Real Estate in Baton Rouge is a Smart Investment: Jobs and Construction
The forecast is in for the metro Baton Rouge area and it calls for 15,100 jobs and over $8 billion in commercial real estate construction projects over the next two years. All industry insiders know that jobs are closely tied to CRE activity, and with employment set to rise, you can bet that those $8 billion in construction projects will be occupied in no time. We have a feeling that when that happens, more development will be on the way.
Why Buying Commercial Real Estate in Baton Rouge is a Smart Investment: The Super Region
A Baton Rouge-New Orleans Super Region is soon to become a reality. The two metro areas are on course to eventually become a single metropolitan statistical area (MSA). This is a huge leap forward for Baton Rouge’s economic development, as joining Louisiana’s two largest cities means competing on a national level.
National competition means national prices…means national returns.
Whether you are buying, selling, building or loaning money for commercial real estate in Baton Rouge, and across the nation, you saw major activity in 2015. With commercial real estate investing at an all time high, one would think the market would start to even out, or maybe even start to plummet, but that’s not the case.
The 2016 Dodge Construction Outlook was just released and spoke to continued growth, projecting that office, shopping center, warehouse and hotel construction will increase 11% next year, up from the 4% gain estimated for 2015. The CRE train is still full speed ahead!
The consensus is simple…property values are on the rise and there is no end in sight. So, armed with this knowledge it’s clear that now is the time to invest, and Baton Rouge is the place to do it.
Buying commercial real estate in Baton Rouge, or any location in the world, can be a very complicated process. Things that seem straightforward sometimes aren’t and things that seem to be a hindrance from choosing a particular asset could be an advantage with the right counsel. The point is, whatever CRE investment you choose to make, do it with a licensed professional.
About Us – The team at SVN/Graham, Langlois and Legendre has over 99-years of combined experiencing helping clients across the Baton Rouge area get the most value out of their CRE investment. Contact one of them today with any questions you may have and start seeing the returns in a market that will make sure to give today, tomorrow and for the extended future. To reach us, you can call us at 225-367-1515 or you can send us a message on our website. You can also follow us on Twitter at @svngll or on Facebook.