December is a time for reflection and planning ahead. If your 2025 goals include improving your financial health, it may be time to invest in commercial property in the Chesapeake, Hampton Roads, and Virginia Beach area.
Commercial property is a (nearly) passive investment that can become an additional income stream and a way to support local businesses or families. Continue reading to discover why 2025 is the year to invest in commercial real estate.
What Is Commercial Property?
Before we dive into five reasons to invest in commercial property in 2025, let’s clarify what commercial property is. Commercial real estate are spaces designed for your own business, other businesses, or a combination of your own business and others. Unlike residential properties, you don’t intend to live in the space and do intend to make money off the space, usually through rent from commercial tenants or families/individuals.
If you’re a fan of the Office, a good example of a commercial property landlord is Dwight after he buys the building Dunder Mifflin is located in. Dwight not only has income from his salary and beet farm, but also from the rent he charges Dunder Mifflin and other businesses in the building. Commercial property can also include multifamily properties where you rent units to individuals or families.
Passive Income
The first, and most obvious, reason to invest in commercial property in 2025 is the passive income it provides. Once you own the property, you can rent it out to others and cash in their rental checks like clockwork. The only “active” action you have to take to earn this income is to coordinate any repairs, renovations, or maintenance work. To be proactive, you can even complete necessary renovations before renting out the property. An industrial landlord in Chesapeake, Virginia recently did just that. They hired a contractor to improve the exterior and curb appeal of the building. After, they were able to charge more rent and had fewer retroactive repairs and renovations to complete.
Commercial Real Estate Is Booming in the Virginia Beach, Area
2025 is the year to invest in the Virginia Beach, Chesapeake, and Hampton Roads area. Why? According to a recent report, the area’s commercial real estate market is stronger than the national market and only expected to keep growing.
Our local area is privileged because we have booming businesses, a healthy economy, and great weather. By investing in commercial real estate in the area, you can benefit from these advantages and help others do so as well.
More Renters Than Before
For better or worse, the United States is becoming a nation of renters. According to recent data, renters have surged three times faster than homeowners in America. Increased demand for rental properties (both for businesses and individuals or families) means there’s never been a better time to become a commercial landlord.
Centerville Commerce Park has recognized this trend, and is regularly full of business tenants. To make their operation more efficient and profitable, they have a go-to contractor on speed dial when they or one of the tenants has a renovation or remodel to complete.
Interest Rate Drops
As a current or future commercial landlord, you’re probably aware of the recent interest rate drop by the federal government. Along with the quarter four interest rate drop in 2024, the government intends to drop interest rates again in 2025. These drops means it’s easier to get a loan and expand a rental portfolio than in years past. The same goes for if you’re investing in commercial property for the first time, whether it’s purchasing multifamily units or a commerce park.
Build the Future of Your Community
The financial benefits of owning commercial property are great, but this investment also provides space for businesses or families in your community. When you purchase an office space, apartment complex, or other commercial property in Virginia, you are investing in the future of your area and can provide businesses and families space to grow and thrive.
What to Consider Before Buying
As most of us know, buying property is more complicated than most shopping experiences. There’s a lot to consider, including: loans, the state of the property you’ll buy, what the space will be used for, how to attract tenants, and more.
While we can’t answer all your questions, we can solve one common problem commercial landlords face: ensuring a space is renovated and can earn top dollar from renters. At Carlton Building Services, we help businesses and commercial landlords build the future of the Hampton Roads, Virginia Beach, and Chesapeake areas. We can partner with you on a renovation, remodel, or build out on a multifamily unit, industrial property, commercial complex, or any other commercial property. Get a free quote or contact us to learn more.
