Jones Aur is a Memphis-first commercial real estate firm. Our team consists of several Memphis natives. And we’Commercial Real Estate Brokerage | Jones Aurre proud to represent our city. But what’s special about commercial real estate in Memphis and Shelby County? What does an investor stand to gain by investing in Memphis?
The Job Market is Thriving
The job market is one of the first things to consider regarding commercial real estate investment. Memphis is a city that’s buzzing with opportunity. And we owe it to the presence of industry giants like FedEx and Nike. These companies bring in more than just business. They bring in people—people who need places to live.
So, what does this mean for you as an investor? A robust job market translates to a steady stream of potential tenants. Some are young professionals landing their first job. Others represent seasoned experts making a career move. But they all need a roof over their heads. And guess what? They’re likely to stick around. Job stability often leads to rental stability, reducing the dreaded tenant turnover that can affect your profits.
A thriving job market also boosts the local economy. More jobs mean more spending, and more spending means a more vibrant community. This creates a ripple effect that enhances the area’s desirability, making your investment even more valuable.
In short, a strong job market doesn’t just fill your properties. It elevates the entire community. And in Memphis, the job market is doing just that—making it a prime spot for savvy real estate investors like you.
Affordable Commercial Real Estate
Now, let’s talk numbers. One of the most compelling reasons to invest in Memphis is the affordability of its commercial real estate. Unlike some cities with sky-high property prices, Memphis offers a range of reasonably priced options. This is a big deal for investors. Why? You can enter the market without a massive upfront investment.
While properties are affordable to buy, they’re often more expensive to rent. This creates a golden opportunity for investors. You can purchase a property at a reasonable cost and then rent it at a higher rate than your monthly mortgage. The result? Positive cash flow right from the start.
Affordability also opens doors for diversification. With lower property costs, you can consider investing in different real estate types, from single-family homes to multi-unit complexes. This spreads your risk and offers multiple income streams, making your investment portfolio more resilient.
And let’s remember maintenance. Lower property costs often mean lower upkeep expenses. You won’t be shelling out money for repairs and renovations, allowing you to keep more of your rental income.
In a nutshell, the affordability of Memphis commercial real estate is a win-win. It’s kind to your wallet, generous with returns, and offers room for growth. If you want to make a wise, calculated investment, Memphis should be at the top of your list.
Property Value is on the Rise
Another compelling reason to invest in Memphis commercial real estate is the upward trajectory of property values. Real estate is about more than just about immediate returns. It’s a long-term game. And in Memphis, the long-term outlook is bright. Over the past few years, property values have steadily climbed, and all signs point to this trend continuing.
Why does this matter to you? Because rising property values mean your investment isn’t just generating rental income. In addition, it’s growing in worth. Think of it as a double bonus. You get the immediate benefit of rental income and the long-term advantage of capital appreciation.
This growth isn’t random. Memphis’s thriving job market plays a role, as do the city’s ongoing development and revitalization efforts. New businesses, improved infrastructure, and community projects make Memphis more appealing, which drives up property values.
If you invest now, you’re not just buying a property. And as the community thrives, so does your investment. It’s a cycle of growth that benefits everyone involved, making Memphis an intelligent choice for anyone looking to invest in real estate with a long-term perspective.
Lower Risk, Higher Reward
Investing always comes with its share of risks. But the scales tip favorably toward reward when it comes to Memphis real estate. Unlike the rollercoaster ride of the stock market or the unpredictability of cryptocurrencies, commercial real estate in Memphis offers a more stable and reliable return on investment.
First, the factors we’ve already discussed—like a strong job market and affordable properties—contribute to this stability. They create a safety net of sorts, making it less likely for your investment to go south. And let’s face it, in the world of investment, less risk is always a good thing.
But stability doesn’t mean stagnation. The rising property values in Memphis offer the potential for substantial returns. So, while your investment is safe, it’s far from idle. It’s actively growing regarding immediate rental income and long-term value appreciation.
Memphis commercial real estate offers a balanced investment opportunity—low enough risk to keep you sleeping well at night, yet high enough in potential rewards to keep you excited about your portfolio’s future.
Turning Vacancies into Opportunities
While Memphis does have a higher-than-average vacancy rate, sitting at 13.4% as of April 2023, savvy investors see this as an open door rather than a closed one. High vacancy rates can often mean less competition for properties, giving you more options and potentially better purchase prices.
But it’s not just about snagging a deal. A higher vacancy rate can also offer room for creative investment strategies. For instance, you could consider properties that can be easily converted or upgraded to attract a specific tenant demographic. You can be more selective and strategic in your investments with less competition.
And let’s not overlook the future. Memphis is on the cusp of significant growth, with major developments like the $5.6 billion Ford facility on the horizon. This is expected to create thousands of jobs and, in turn, boost housing demand. So, while the vacancy rate is high, the tide will likely turn, making early investment a potentially smart move.
A high vacancy rate isn’t necessarily a drawback. It’s an opportunity for the right investor. It’s all about perspective and strategy. In Memphis, the glass isn’t half empty; it’s half full and waiting for you to fill it.
Invest in Memphis With Jones Aur
Now you know what results you’ll get from investing in Memphis. The Jones Aur team has decades of experience in commercial real estate in Memphis, Germantown, Little Rock, and beyond. Call us or head here to get started today.