How to Find Commercial Real Estate

In the U.S., the total dollar value of the commercial real estate industry is estimated at $20 trillion. On a global scale, the U.S. contributes 16 of the world’s 30 largest commercial real estate markets. Even after the disruptive COVID-19 pandemic, these transactions remain lucrative.

Tampa, Fla., is among the nation’s hottest markets for residential real estate — and its commercial properties aren’t far behind. So far, in 2023, Tampa has experienced significant population and economic growth. Demand for office space, industrial space, multifamily rentals, and retail space are all stronger than the national average.

As we near 2024, commercial real estate investors have many reasons to invest in Tampa. The city’s blend of timeless qualities and modern amenities make it attractive to businesses and renters alike. Residents enjoy access to beautiful beaches, lush parks, and a lively downtown scene with unique restaurants, bars, and shops. The city has plenty of properties for those seeking financial gains and more robust portfolios via commercial real estate.

Whether you want to leverage commercial property to expand your business or create additional income, read on to learn how to find commercial real estate.

The best way to find commercial real estate is to enlist the guidance of an agent who specializes in commercial property. Commercial real estate entails a unique set of resources and skills. If you’re searching for properties in Tampa or Orlando, look for a local agent who has the proficiency and insight to guide you to your real estate goals. Alan Kronenberg is the agent you want by your side, with a strong background in finance and transactional real estate.

As we will see, Alan is equally adept at working with new investors and those more experienced with commercial real estate. On the one hand, Alan is transparent about the state of the local market, going so far as to maintain a public database of publicly listed properties. On the other hand, a significant part of his value is having widespread access to listings that may not be available online. Alan’s expertise extends from the beginnings of your search through endgame negotiations, including customs and regulations unique to commercial real estate.

 

To begin your search for commercial listings, starting with online services can be helpful. A local real estate agent is an indispensable resource as you seek to narrow your search. They can take you beyond the surface of niche listing services like LoopNet.

Suppose you’re seeking commercial real estate in Tampa. Working with Alan, you can immediately access all the city’s publicly listed commercial real estate properties. As of August 2023, Tampa contained 77 such properties, from Uptown Tampa to the peninsula. The upper quartile of the market was priced at $1.7 million and above. Investment opportunities exist in the low six figures, while the most expensive properties combine excellent locations with extensive square footage.

Crucially, not all available commercial properties are listed online. A well-connected agent can turn up opportunities only they know about. Still, starting your search online can give you a solid foundation and help you narrow down your options.

The easiest way to filter your search is according to property type. As you may know, there are four main classes of commercial real estate: office space, industrial, multifamily rentals, and retail. These classes have subcategories — for example, industrial properties comprise warehouses and manufacturing plants. You can find retail properties in shopping centers or freestanding stores, while office space typically clusters downtown or in other city centers.

 

As of Q1 2023, Tampa saw a swift absorption rate of office space. The net absorption rate was about 10% of the total inventory. Market rent grew by 3.5% year-over-year to about $28 per square foot. The vacancy rate was also below 10%. Most notably, total sales volume approached $300 million — a massive growth over Q1 2022, when total sales volume for Tampa office space was just $182 million. 

 

As you might expect, industrial properties occupy the most space in Tampa. Industrial real estate is the most voluminous sector of commercial real estate, and it exhibits the least variance in net absorption, vacancy rate, market rent per square foot, and market cap rate. As we progress from Q1 2023, industrial real estate is primarily attractive for long-term gain. Market rent for industrial properties has grown by 12.7% over the past year, with a total sales volume of over $161 million.

 

Despite fast absorption, Tampa’s market for multifamily rentals saw sluggish prices and relatively high vacancy rates as of Q1 2023. Asking rent grew just 1.6% year-over-year, while the vacancy rate increased to 7.3%. Net delivered units and market cap rate held steady.

 

Retail properties in Tampa were a robust market in Q1 2023. Metrics held steady nearly across the board. With stable performance in market rent per square foot, more investors are looking at retail properties. That demand was reflected in transaction sale price per square foot, which rose from $238 to $288 from 2022 to 2023.

As a rule, the more filters you apply to your search, the more suitable properties Alan will bring to your attention.

For instance, one highly effective way to narrow down your search for commercial real estate is to focus on your target area. Whether you are an investor searching for the next hot spot or a business owner seeking a strategic location, focusing your search within a specific area can make the process more efficient and productive.

Besides location, another main criterion is your budget. Your budget works in tandem with the places you scout — by honing in on a specific city, neighborhood, or even street, you can more easily evaluate that area's market trends and property values. You want to make sure you can afford the location while still having some room to make upgrades or renovations as needed.

Finally, your business goals should be a driving force behind your location choice, as you want to ensure the property supports your long-term objectives and is a solid foundation for your success.

Leveraging your agent's network is a highly effective way to find off-market commercial real estate listings. Frequently, agents have access to properties that are not yet available to the public, which can give you a competitive edge. Agents will also have connections with other professionals in the industry, such as potential sellers or buyers looking for commercial rental property. Using your agent's network, you can expand your reach and increase your chances of locating the perfect commercial property in Tampa for your business.

Trusted Realtor Alan Kronenberg is a Tampa based real estate expert specializing in commercial and residential real estate. With top-tier market insight, paired with an extensive background in title insurance and 18 years of experience, Alan is ready to guide you to success. Connect with Alan today to learn more about available properties in Tampa and get started toward your goals.