Real estate investors constantly seek the next possible investment. They might be looking for a place near them or on opposite sides of the country. What they might be looking for is a location that offers growth potential and long-term stability for their investment. Is Wilmington, Delaware one of the best options for their next commercial property investment? We will discuss this and more in this guide.
Researching the local area where you plan to purchase a commercial building is ideal. Due diligence on your part as an investor requires a thorough examination, not just of the building, but also of the surrounding area, municipal codes and taxes, and other relevant factors. Let’s discuss whether commercial property in Wilmington, DE, is worth the time and effort to find your next commercial building.
Wilmington’s Convenient Proximity To Major Cities
Wilmington is situated near the I-95 corridor and is located 30 miles south of Philadelphia. It is also easily accessible to other major cities, such as New York City and Washington, D.C. Wilmington has already been home to corporations like DuPont, MBNA (acquired by Bank of America in 2006), and WSFS Bank. Numerous industries highly value Wilmington commercial real estate properties due to their convenient access to transportation options, including the Northeast Line of Amtrak Rail, Philadelphia International Airport, and regional ports.
A business looking to establish a logistics center, client-facing operation, or its headquarters in Wilmington may find that this location is valuable, especially when there are plenty of options for commuting for its employees. Your tenants establish a business that provides easy commutes for employees who travel by car, Amtrak via neighboring cities, and public transportation options that take them in and around the Philadelphia area. Even residents of Philadelphia travel to Wilmington for work purposes.
Businesses Can Thrive Here
At one point, Wilmington was considered one of the corporate outposts of a single industry. Specifically, the banking industry saw corporations establish their headquarters in Wilmington. Other sectors such as healthcare, legal services, and fintech are also making their presence known while contributing to Wilmington’s overall economic growth. Numerous Fortune 500 companies maintain regular operations in the city, alongside small businesses that are experiencing continuous growth, thanks to local grant programs and other factors.
The growth and support may be enough to ensure that commercial spaces in Wilmington face increased demand. Investors may also be seeking opportunities to acquire these properties, which are likely to attract competitive demand from businesses looking to establish their operations. They may be seeking a space that offers them numerous advantages over their competitors, such as visibility, ease of commute, and accessibility for clients and customers. Commercial real estate investment in DE may have investment opportunities that other investors might overlook.
Properties Are Affordable Compared To Neighboring Cities
Wilmington might have the advantage when it comes to affordable commercial properties compared to nearby communities like Philadelphia, Baltimore, and Washington, D.C. The lower price points might entice investors without requiring them to sacrifice major details, such as accessibility or infrastructure. With such a lower barrier to entry, investors may seize the opportunity to:
- Acquire larger or more premium properties for the same capital they have
- Achieve higher cap rates in numerous commercial asset classes
- Spread investment across multiple properties or tenants
Wilmington remains a large city with numerous distinct neighborhoods. Each area of the city has its own tenant demographics and price points. Neighborhoods like Riverfront or North Market will be ideal for those seeking mixed-use properties and redevelopment opportunities. For those who specialize in office and retail space investments, the prime location will be the downtown area.
Tax Benefits and Business Incentives
Delaware is one of the most corporate-friendly states in the country. Which is why more than a million businesses are registered in the state. The tax structure is pro-business and features a legal framework that will be beneficial for many companies. The benefits for investors include:
- No state sales tax
- Corporate-friendly laws of incorporation
- Lower property taxes compared to neighboring states.
That’s not all. Other programs support property redevelopment and the growth of small businesses. The Delaware Prosperity Partnership and the City of Wilmington provide them. Both offer excellent incentives for those who invest in specific types of commercial real estate in Delaware, including properties undergoing renovation or repositioning.
Financing Options For Commercial Buyers
With financing being a significant part of investment, finding a commercial mortgage in Wilmington, DE will be a priority. That’s because you have financing options that you might be eligible for based on your investment needs and preferences. Consider the following options:
- Traditional commercial loans for owner-occupied commercial properties
- Portfolio loans for more flexibility
- Bridge loans for investors who intend to renovate and refinance the property
Working with a commercial mortgage planner will be a massive step in the right direction. They will be able to navigate through the complexity of investing in a commercial space. Whether it is for a single tenant or multiple tenants, a commercial mortgage planner can help put together a strategy that will help you acquire the property that you desire for your portfolio. This also includes selecting the appropriate structure based on your time frame, goals, and investment risks.
Let A Mortgage Planner Near Wilmington, DE Help
Wilmington, Delaware, offers commercial property investment opportunities tailored to your needs. Choosing the right one may take time, but eventually you can decide if it’s the correct location after performing your due diligence. If you wish to do so, explore the surrounding areas, including parts of the Philadelphia area, and make comparisons on the investment price, growth potential, and other aspects that could yield a positive return on investment. If you have any questions about acquiring a commercial property in Wilmington and would like a commercial mortgage planner to assist you, contact Penn Street Mortgage today, and we’ll get started on what you need.