Economic development and commercial real estate go hand-in-hand, but for real estate professionals entrenched in daily property transactions, it’s easy to overlook the important role economic development offices play in a market’s growth.
Economic development agencies should be your first stop when pursuing properties in a new market, and here’s why:
- Growth is the name of the game, and economic development offices are 100% in tune with the ins and outs of what is happening in their city. Not only do they have valuable relationships with their city’s departments and businesses that could be beneficial to you, they also know when new businesses are coming into the city or other existing companies are expanding. The information that these economic development agencies can provide is invaluable to a commercial real estate investment strategy.
- They can provide useful context and insight into local commercial real estate trends. Data can tell you one story, but it’s also useful to understand market trends on an anecdotal level. Economic development offices can provide a detailed history of their city’s economic growth so you can better understand where the market is going.
- They offer guidance and resources related to taxes, incentives and more. Depending on the type of business or commercial space a company is looking for, local commercial real estate incentives may be available. It’s also important to understand the various tax regulations that may be specific to a city or state.
Developing strong working relationships with a city’s economic development office is crucial for commercial endeavors of all sizes. Their expertise in city planning and growth paired with a comprehensive commercial real estate strategy make for a mutually beneficial partnership. As is the name of the game in commercial real estate – the more information and data you have, the stronger your competitive advantage in the marketplace.