How do investors gauge a location’s business potential? The area’s economic growth stats are, of course, a huge factor, but so is consumer confidence. In fact, according to AKBizMag.com, the locals’ confidence in the economy of Anchorage, AK might be one of the driving forces for the city’s continuous economic growth:
Comprised of three individual components — Local Economy Confidence, Personal Financial Confidence and Expectations for the Future — the overall reading has risen steadily this year and currently sits at an all-time high of 63.4, a 0.1 point increase from last quarter. The more stable six-month average rose 1.5 points to 63.3, also a new record high.
“The increase in consumer optimism reflects what we’re seeing with our commercial and consumer clients,” says Brian Nerland, KeyBank’s Alaska President. “Business and consumer borrowing is growing and that reflects a general positive feeling about the Anchorage economy.”
With a good consumer confidence rating, entrepreneurs can now feel at ease in acquiring Anchorage commercial real estate to set up or expand their ventures. Deciding whether to buy or to lease a property, though, is never an easy undertaking. Thus, business owners need to arm themselves with the right knowledge to help them arrive at a well-informed decision.
Generally speaking, a commercial property is a business asset, making ownership more favorable than a lease. If the time comes when the business has to relocate due to expansion or for other reasons, the owner can sell the property and receive a handsome amount of profit. The dilemma for investors looking into buying a property, though, is having enough for upfront cash payment. As it is, leasing requires less upfront cash payment than buying.
In addition, since buying the commercial property essentially means possessing a business asset, investors will also have to consider ways to manage the property, especially if they plan to lease some space to other tenants and generate profit in the process. In this case, it will be helpful to get the assistance of Anchorage property management specialists in handling the tasks of screening tenants and collecting rent, among others.
With a boost of consumer confidence in Anchorage, potential investors can feel equally hopeful about their commercial property acquisition plans. While choosing whether to buy or to lease real estate can be difficult, guidance and support from professionals like Graham Commercial Real Estate can help in every aspect of operations, from budgeting and capital processing to property management.
(Source: Locals confident in Anchorage economy, AKBizMag.com, November 11, 2014)