Commercial real estate investors are always drawn to cities. Metropolitan areas typically offer a number of property investment opportunities ranging from office and commercial space to multifamily residences and new construction. But lately, some have been looking outside of cities to generate income from properties, and there are a number of trends supporting their strategies.
Socioeconomic Trends in Metropolitan Areas
A significant number of businesses and individuals are leaving the cities they called home. The largest factor at play right now is the COVID-19 pandemic. Businesses that once relied on office space in cities have moved their operations online, and their employees are not working from home. This has moved people who work for those companies to seek out larger housing with dedicated office space that they currently do not have. Housing options outside of metropolitan areas afford people the space they need to not only work, but also accommodate their growing households.
Additionally, the cost of living in major metropolitan areas is higher than in less populated areas around the country. Retail and hospitality businesses have been in a holding pattern throughout the pandemic, forcing people to look for unemployment elsewhere. Individuals are relocating to areas outside of their respective cities, making plans for new careers or to take temporary jobs until the pandemic is over and the economy is revitalized.
Social tension has also driven people out of metropolitan areas. The “urban flight” caused by growing tensions across all demographics has people making plans to relocate to places away from current anxieties in our social, political, and economic climates.
Property Investors Follow the People
Location is everything in the world of property investments. Commercial real estate investors are following the people, because migrations lead to opportunities. Fix and flip opportunities, commercial space and venues with larger areas to allow for social distancing at a lower cost than metropolitan areas, new construction developments in less populated towns – all of these give property investors a chance to generate income by getting ahead of the socioeconomic motivators that are causing people to leave big cities across the country.
At The Capital Rams, we provide funding solutions property investors nationwide. Whether you need capital for acquisitions, renovations, new construction, or fix and flip projects, contact our team today.