Alabama is a beautiful southern state known for its comfortable climate, delicious food, and sandy beaches. If you like spending time outside, camping, hiking, and exploring all that nature has to offer, Alabama is a wonderful choice for you.
With a low cost of living, and the average price of housing nearly cut in half compared to the rest of the United States, it’s hard to go wrong with investing in commercial property for sale in Alabama.
What Type of Commercial Property is Most Profitable?
Each market is going to be a bit different, so you’ll likely get a slightly different answer depending on the exact area you’re looking at. Generally, though, you can expect a building with space for multiple tenants to be the most profitable, since losing one tenant in this instance won’t impact your profit nearly as much.
Structures such as storage units and residential vehicle parks can be ideal property types because they don’t take much time and energy to maintain and multiple people can rent space at a time.
In addition, multi-tenant apartment buildings and retail space can be wonderful options as well, though they may require more maintenance at times. However, in most cases, you can charge more for renting this type of property.
What is the Best Commercial Property to Own?
The best commercial property to own will depend on your own personal goals, strengths, and weaknesses. It will also vary based on the market of the area in which you’re buying your property. In many places, apartment buildings and retail space are highly sought after, which can make filling them a breeze.
In contrast, after the pandemic, it has been harder than ever to find tenants for office space in many places, which makes it a bigger risk to own and maintain the space.
There is no one best commercial property to own in Alabama. If possible, try to diversify to keep up with the ever changing demands of the commercial real estate market without incurring any unnecessary risk.
How Much is an Acre of Land in Alabama?
It depends on the exact area. However, you can expect farmland to set you back around $3,000-4,000. If you’re looking for an acre of land in a busier part of the state, then you can expect to pay around $12,000 up to $20,000 for an acre. While the land can be somewhat expensive, Alabama has one of the lowest costs of living in the United States, and the average price of a home is about half of the national median, so it’s hard to go wrong no matter where you choose to buy your property within the state.
Can You Live in a Commercial Property in Alabama?
Technically, you can legally live in a commercial property in Alabama, but not every building is created equally. For example, apartment buildings and hotels are considered to be commercial property, however, they have all the infrastructure to meet the needs of daily living, which means living in them is technically legal. That doesn’t hold true of every commercial building.
Many commercial buildings are simply not appropriate for living in. More than that, most commercial buildings will not be zoned in a way in which you will be able to live there full-time and comply with the law. The one exception is in certain areas where mixed-use zoning is permitted. In this case, you might find commercial buildings on the first floor of a building, yet floors on the top are converted into apartments.
It’s not legal or appropriate in every situation, but if you think you have a building appropriate for mixed-use on your hands, you might want to consider chatting with a zoning expert to see if your building could be suitable for residential use.
What Type of Property Makes the Most Money?
There is no one-size-fits-all answer to this question, as different properties are going to yield different results depending on the market conditions and the type of property you have. However, multi-tenant buildings generally bring the most profit. Apartment buildings and condos are some of the best options, because housing is always going to be a necessary demand no matter what state you’re in.
In addition, it’s good to consider multi-tenant retail space as an option as well. Shopping centers with a variety of stores and services often keep customers coming back, providing security both to you and the tenants there.
However, because the market can vary even within the same city, it’s good to collaborate with a real estate professional in the area who can help you get the most bang for your buck with Alabama commercial real estate.
Where Should I Look For Commercial Property for Sale in Alabama?
Commercial real estate in Alabama is a thriving market, and we believe the best place to look for your next investment opportunity is Nestfully.At Nestfully, we aim to provide you with the best user experience possible by eliminating advertisements and clutter from our website, so you can focus on what truly matters. When you find a commercial property for sale in Alabama on our website that meets your needs, you can contact the listing agent with just the click of a button. Give us a try today!