The Carolinas real estate market is booming, to say the least. Whether it be for new development, commercial or residential needs, many companies see this area as an ideal place to bring their business.
In fact, currently in North Carolina, employees are drawn to the state due largely to its strong economy and low property taxes. And attracting employees is one of the main reasons why a company may look into buying or leasing commercial real estate. However, with many cities and towns popping up in this area, it can be tough knowing where you should locate your company.
This article will help you get a clear picture of Carolina’s property investment, so you can better decide about homes for sale in North Carolina that have attracted a number of investors around the world. Moreover, the article will help you get access to residential and commercial properties in these two states so that you feel confident in making the right investment decision for your company’s growth.
A look at Carolina’s commercial real estate market
Commercial real estate markets in the Carolinas have for many years exhibited impressive and sustainable growth.
North Carolina and South Carolina, two neighboring states in the southeastern United States, attract many business investors with their exceptional transport infrastructure, educated workforce, and pro-business attitude. While both states share a border of almost 250 miles, they have distinct demographics and are often analyzed individually by commercial real estate investors.
The Carolinas are a distinct region with a lot to offer companies looking for new places to expand or relocate. Its attractive geographical location, substantial pool of skilled and motivated workers, low costs of living, and easy accessibility to major markets provide reasons why the area has become a center for manufacturing, distribution, transportation, and technology companies.
Some Carolina Sectors adding worth to its Real Estate Market
- Residential Real Estate
Carolina’s residential market is at a peak, with homeownership increasing and prices near their height. The renewed sense of community that the pandemic has given is probably the driving force behind this increase in the residential market.
Of all the sectors within the real estate market, the residential sector had some of the more noteworthy aspects to its activity during the pandemic. Many homeowners relocated themselves, as well as their families, out of state or even out of the country to seek safer ground, which ultimately increased demand for housing in areas further away from major cities. This resulted in a spike in prices for certain areas that had attracted residents as they migrated outward.
The re-disbursement of those funds ultimately resulted in an increase in the number and quality of homes on the market. With some homebuyers still struggling to find a home, many others have begun to rebuild and restore what they have lost.
- Tourism Industry
Tourism agencies in North and South Carolina have been hit hard during the current downturn, as a big reason why tourism contributes to the economy is consumer discretionary spending. Consumer spending has been down. However, While consumer spending on travel hasn’t reached its heyday yet, business travel is still down in the Carolinas—despite an overall trend of increased business travel throughout the country.
But some parts of the state, like the Carolinas’ largest city, Charlotte, are doing a bit better—perhaps because business is still relatively strong. As Dean Foust of Business First reported, “The metro Charlotte area is enjoying a building boom, including the construction of offices and hotels.
- Growing trend of offices
Based on the latest CoStar Group survey, many tenants are moving out of the central business districts to low-rise buildings in suburban areas. This is an interesting trend and poses interesting questions for the real estate market.
Builders are scrambling to meet the increasing demand for office spaces in suburban areas. Where are all these new office spaces coming from, you ask? As more businesses move away from crowded inner cities and traditional office districts, more buildings are being constructed to meet the growing demand.
- Industrial sector
The industrial real estate sector has been doing well throughout the pandemic. Life sciences have done well since the development of vaccines increased interest in science and demand for lab space. The PPE industry has also done well during this time, but with many new competitors, it is competitive.
Currently, the industrial sector is worth approximately $6.5 billion in real estate.
Manufacturing jobs decreased for years during the recession, but over the past few years have started to increase again. Technology and financial services are also important contributors to our state’s employment numbers.
The Carolinas real estate market is probably the most appreciated market in the entire United States. Wedged between the Appalachians and the Atlantic, North Carolina and South Carolina enjoy a strategic location that business owners find extremely attractive. Other key attributes such as strong economies, low property taxes, and relatively mild climates also have contributed to the recent roaring success of the commercial real estate market in these two states.
Many cities in North and South Carolina have become major distribution centers for national retail brands.