Tacoma, Washington, is a prime location for investing in Commercial Real Estate, with its deep-water harbor, Commencement Bay, and rich history as the western terminus of the Northern Pacific Railroad. Commercial Real Estate in Tacoma represents a diverse range of investments, from office buildings to retail spaces, offering opportunities for businesses to establish a strong presence in the city. With its revitalized downtown area, featuring developments like the University of Washington Tacoma and the T Line light rail service, Tacoma provides an attractive environment for businesses to thrive. The city's infrastructure, including Tacoma Public Utilities and municipal garbage collection, supports the growth of Commercial Real Estate. Additionally, Tacoma's location, with its proximity to Seattle and access to major transportation facilities like the Tacoma Dome Station and Seattle-Tacoma International Airport, makes it an ideal place to invest in Commercial Real Estate. The city's attractions, such as the Museum of Glass and Point Defiance Zoo & Aquarium, also contribute to its appeal as a great place for business and travel.
Tacoma's Commercial Real Estate market offers a range of opportunities, with 106 listings currently available. The average price per square foot is $341 USD, and the average size of these properties is 17,351 square feet, with the largest property spanning 173,022 square feet. Industrial Properties in Tacoma, such as those near the Port of Tacoma, offer opportunities for manufacturing and logistics businesses. Apartment Buildings, like those in the Stadium District, provide housing options for residents. Office Properties, such as those in the Downtown Tacoma area, serve as hubs for businesses. Hotels, like those near the Tacoma Dome, cater to travelers and tourists. With its diverse economy, rich history, and attractive amenities, Tacoma is an excellent location for investing in Commercial Real Estate.
What financing options are available for purchasing commercial real estate?
When it comes to financing options for purchasing commercial real estate in Tacoma, there are several alternatives to consider, including:
- SBA 504 loans, which offer fixed-rate financing for up to 20 years, with a low down payment of 10% and a fixed interest rate, ideal for small businesses and startups.
- Conventional commercial mortgages, which provide flexible terms and competitive interest rates, often requiring a 20-30% down payment, suitable for established businesses and investors.
- Private money lending, which offers short-term, high-interest loans for fix-and-flip projects or other unique situations, often requiring a larger down payment and higher interest rates.
How do cap rates factor into commercial real estate purchases?
When considering commercial real estate purchases in Tacoma, understanding cap rates is crucial. The average cap rate in Tacoma is 6.98%, which can help investors determine the potential return on investment (ROI) of a property, making it a vital factor in their purchasing decisions - to learn more about this, check out our article on what is a cap rate.
In Tacoma, with 106 available listings of commercial real estate, investors can use cap rates to compare properties and make informed decisions. By analyzing the cap rate, investors can gauge the property's potential income generation and determine if it aligns with their investment goals, ultimately influencing their purchasing decisions in the Tacoma commercial real estate market.
What is considered a commercial property?
In Tacoma, Washington, a commercial property is generally considered to be a building or land used for business or commercial purposes, such as office spaces, retail stores, restaurants, warehouses, and industrial facilities. These properties can range in size from 17,351 square feet to 173,022 square feet, with an average price per square foot of $341 USD and an average cap rate of 6.98%, offering a wide range of opportunities for businesses and investors in the area.
