When it comes to real estate investment, the midwest has quickly been gaining attention from investors. There are many key reasons why commercial real estate in Missouri has become attractive for investment in recent years. With a range of affordable properties to choose from and a trend upwards, the Midwest state has become a key location for all types of real estate investment. St Louis in particular has become increasingly popular, and in 2020 can be regarded as a key investment hub. Have a look at why commercial property St Louis has become such an enticing proposition for investors.
Affordability
St Louis offers investors an affordable way into commercial real estate investing. They are able to get the perks of buying property in a big city without needing the large deposits that would be required elsewhere. When taking into account factors such as living costs and average incomes, St Louis has one of the most affordable real estate markets in the entire country, and this makes it appealing to investors.
Plenty of Vacant Homes
The wide variety of properties available on the market is another significant reason for why the location attracts so much investment interest. With around 20% of homes being vacant, there are plenty of fantastic bargains to be found. Foreclosures and distressed sellers are common in the city, which means that there are always tons of investment opportunities to be found. There are plenty of acres of building to be found. Aside from residential homes, there are also plenty of Missouri office property and other commercial/industrial properties. These spaces tend to fetch some serious rent which makes them highly appealing for investment.
Price Stability
All investors want to avoid violaity, and in the St Louis real estate market there has been a slow trend of upward growth. This shows that buyers can expect long-term appreciations without needing to worry about sudden spikes in price. The stable prices make this a worthy long-term investment for buyers.
High Potential ROI
The goal of all investments is to get the highest return possible. The St Louis real estate market offers a high potential for large ROI. With rising median rent prices, owners can get a fairly high source of stable income coming in. The average rent tends to be around $900-$1100 a month.
Good Renters Market
St Louis has fairly friendly landlord policies, and the renters market is very good. The state makes it easier to evict tenants that don’t pay rent, which makes it a less risky proposition. The national average for renting is 30%, whereas it is 60% in St Louis. There is a fantastic rental market to take advantage of, and there are also many students located nearby due to the multiple universities. However, unlike traditional student towns, these are more scattered, which means investors face less competition.
You will now have a key understanding of why St Louis offers fantastic commercial real estate investments. It is a location where there are plenty of opportunities available to investors. With so many properties and spaces on offer, it is well worth considering. If you need more information on these investments, then the Cardinal Realty Group is always happy to help. Contact me, Harold Hanstein, on 636.225.0385 or send through an email to Hal(at)CardinalRealtyGroup(dotted)com.