Retail / Mixed Use in Up and Coming areas
I've been out looking at fabulous "main street" brick retail/mixed use spaces today in Canton, NC (which is West of Asheville and close enough that people are starting to pay attention). I've been around the commercial real estate world long enough to know that lease rates matter, and commercial space empties when the economy is down. I'm new to the area so I'm loving the prices on these buildings but I know that it's not a thriving retail area yet and rents are low, vacancies are improving but high enough to concern me. I'd love to hear from investors who have bought buildings before areas got hot and what your strategy is for holding these in the lean times.
On paper they're not great investments now, and it might be another cycle before they really gain value, but I see the trend and I'd rather buy something early in a market and be ready when rent rates go up. How risky does that sound? What factors would you consider when analyzing long term potential?
Most Popular Reply
I lived in Canton for a couple of years, there is demand for Asheville folks that need more affordable housing. The Northside of Canton (Newfound/Beaverdam) rarely smells like downtown Canton does and is right off I40.
Our house sold in 36 hours, no issues there.
Also, look in parts of Candler, Leicester and Hendersonville. Outside of Asheville and slightly more affordable.