Best Southern Cities for Commercial Real Estate Growth

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CHARLESTON, S.C. – Despite the economic turmoil dominating the headlines – high interest rates, an impending recession, and banks collapsing – the financial experts at Loan Mantra have found that commercial real estate (CRE) is still hot in certain southern cities, some markets are thriving despite the turbulent economy, and there are definitely various CRE investment opportunities worth consideration.

For instance, some of the top commercial real estate markets for 2023 include Raleigh-Durham, Charlotte, Nashville, Dallas-Ft. Worth, Atlanta, Tampa, and Austin. Additionally, Charleston’s robust commercial real estate market is poised for growth in 2023 and beyond. The company currently has investors looking for commercial opportunities in the $5M-$10M range.

“Exciting things are happening to commercial real estate, especially in the south. In Charleston, we’re seeing dramatic growth in warehouse and distribution centers, as we shift to more e-commerce shopping models in our post-pandemic world. This behavioral pivot is driving considerable investment in the city’s commercial real estate development,” said Raj Tulshan, founder of Loan Mantra.

“Additionally, Raleigh-Durham’s demand for office space is steadily increasing, which is expected to continue through 2023. The area boasts an amazing combination of leading universities, an affordable way of life, culture, southern charm, and top companies like Fidelity Investments, Apple, and Google. It’s a great CRE investment market,” Tulshan continued. “Then, look at Charlotte, one of the Top 20 fastest-growing cities, a huge banking and industrial hub, with a low cost of living and wonderful weather. It’s a lovely place to live and work and would be another great CRE investment opportunity.”

While the economy has been tumultuous for the past few years, commercial real estate can be a wise investment – if you do it strategically. The financial experts at Loan Mantra offer the following advice:

· Do your research. Determine where commercial real estate is hot. Which markets – like Raleigh-Durham, Charlotte, Charleston, Nashville, etc. –are seeing an influx of businesses? Which cities have solid “anchors” – like universities, large industries, and/or major corporations like Boeing and Google – that will continue to draw people to the area? Also consider other factors that are likely to attract growth – such as low cost of living, pleasant weather, low crime rates, etc.

· Look at growth projections. Which cities are building out their infrastructure, such as retail and restaurant space? Which markets are adding new homes and apartment buildings? Where are new offices and parking structures being added? Conversely, look at where cities are losing space, facing declining populations, and experiencing decreased spending.

· Determine where rent is increasing. In commercial real estate, it is a smart financial decision to be your own landlord. In this (or any) economy, buy real estate rather than rent, whenever possible. When rents have climbed the highest, it’s more attractive to own property vs. rent.

· Invest in technology. When investing in CRE, be certain to invest in tech. Technology that automates processes and controls building operations (including HVAC, security features, etc.) have become essential in commercial real estate, so look for opportunities that include strong tech. Investors that buy properties with efficient, streamlined, tech-driven processes will be better positioned, especially as additional CRE opportunities emerge moving forward.

· Prioritize ESG. Smart commercial real estate investors are prioritizing environmental, social, and governance (ESG) efforts when purchasing, building, and operating properties. ESG will become a non-negotiable for building owners and investors in the future.

· Be flexible. The way we do business has changed. E-commerce options with warehouse and distribution centers are replacing huge retail spaces. Many large companies that previously used huge office spaces have pivoted to remote or hybrid work environments and now need smaller, more flexible workspaces. Since the future of the office remains somewhat uncertain, many organizations prefer short-term, flexible CRE leasing options.

· Work with a financial expert. If you’re thinking about making a real estate investment and you need to secure funding, work with the experts at Loan Mantra. Funding is available, and we will make it easy to get the loan you need to finance your project. Our professionals can provide customized advice based on your specific circumstances and needs. Call us today and let us help you on your path to financial success.

About Loan Mantra

Loan Mantra is a one-stop FinTech business portal that democratizes the loan process by providing corporate sized services and access to new entrepreneurs, small and medium sized businesses. Small business owners identify two obstacles to their success: access to capital and financial education. At Loan Mantra, we remove these hurdles. We believe borrowers of all sizes should have equitable access to the $5.4 trillion marketplace of SMB financial products, lenders, government programs, and services. How?

Our end-to-end portal, BLUE (“borrower lender underwriting environment”) is built on decision-tree logic, so borrowers answer questions in the manner they understand best and find the right financial products and lenders. With a few simple clicks, our users complete loan origination paperwork; upload documents; connect or communicate with financial partners; and manage their loan process–anytime and anywhere. Our best-in-class FinTech meets NIST v. 500 standards so borrowers can safely store their financial records, making it painless to acquire more capital if they need it down the road.

As a minority-owned business, Loan Mantra understands the challenges facing underserved borrowers. Our mantra? To improve the future of human entrepreneurship through best-in-class technology, financial literacy, and commitment to equitable market access. Reach out today at www.loanmantra.com.