We all know location is key when it comes to investing in commercial real estate. Things such as population, demographics, local economy and desirability are all key factors to consider when looking to invest in commercial real estate. Another factor to consider is potential – what is the trend of the local economy in the area you are looking at? It’s important to strike a balance between paying a fair price that will allow the value of the property to grow and finding a location that has enough demand that the value will grow. Here are 5 places to invest in Oregon with high potential for success.
Portland is the largest city in Oregon, with nearly 650,000 residents (not including surrounding suburbs), and offers a lot of opportunity to invest in multi-family properties. Although the last few years boasted high purchase prices for multi-family properties, the market started to cool in 2019. This offers investors the ability to buy at a price that still allows for growth in an area that continues to be in high demand. Due to the stalling of multifamily prices, this also means that there are more properties available to potential investors.
Ashland is a hidden gem of Oregon. With a strong connection to the outdoors and a thriving creative culture, the town is a dynamic place to consider investing. The town has a supportive business climate, with many independent businesses. In addition, the main employers are healthcare companies, hospitality, education and retail. This creates the foundation for a thriving economy and an excellent opportunity for investors to consider.
In the last 10 years, Bend has enjoyed having one of the fastest real estate appreciation rates in the country. Multi-family properties are a safe bet for investing in this area, as rents continue to increase steadily. In addition, there is high demand for rentals in the area, with the average time to fill a rental vacancy being around 10 days.
As the capital of Oregon, Salem boasts a steady real estate market. Again, rentals provide a great opportunity for investment, although the rental income is less than one would find in Portland
Hermiston’s economy has been bolstered in recent years by major business investments by companies such as ConAgra Foods Lamb Weston, DuPont Pioneer and FedEx Freight. The city is a transportation hub due to its proximity to Interstates 84 and 82. Consider Hermiston for a longer-term investment, rather than a quick turnaround investment.
Know of other cities in Oregon that have commercial real estate potential? Drop a comment below and tell us your favorites!