COMMERCIAL PROPERTY in EMERALD ISLE and the CRYSTAL COAST

 

THE BASICS

COMMERCIAL PROPERTY - A classification of real estate which includes income producing property such as office buildings, gasoline stations, restaurants, shopping centers, hotels and motels, parking lots and stores, and other similar uses.

​

Commercial estate generally is classified into four broad categories:

• Office

• Retail

• Industrial

• Land

• Specialty Properties

​

Office space is space that is used for clerical, management, professional or other similar functions. On the Crystal Coast, office space is often found in small free-standing buildings, houses which have been converted for use as office space, and "strip" office buildings. 

​

Office space is often classified as Class "A," "B" or "C." Class "A" typically is no more than 20 years old, has modern features and amenities, is well maintained, and has excellent construction quality and finish materials. Class "B" and"C" office space typically is older than 20 years, may not have been well-maintained, and has features and amenities that are dated. The more pronounced the age, maintenance problems and lack of amenities or features, the more likely the building will be classified as "C" rather than "B" space. The significance of the ABC classification is that most often, Class"A" space commands the highest rents in the market and Class "C" space rents at the bottom of the market.

​

Retail space is space used to offer and sell goods or services to the consuming public. Retail space is broadly classified into shopping centers, stand-alone retail facilities and strip or cluster facilities. A majority of retail space on the Crystal Coast falls into the stand-alone retail category. 

​

Industrial facilities are typically defined as facilities used for the manufacturing, storage or distribution of goods. Some examples of industrial property include bulk warehouses, office warehouses, large and small manufacturing, multi-tenant industrial, research and development, and industrial parks. 

​

Land is the most complex type of commercial property because it is possible to put land to any use that is permissible under applicable public land use regulations and private use restrictions. In addition, it is frequently possible to obtain a change in land use restrictions, such as zoning, which may permit more or different uses. 

​

Specialty Properties constitute their own niche because there is a relatively narrow market for these types of properties. Examples of these types of properties include golf courses, amusement parks, sports facilities, churches and synagogues and hospitals. 

​

Regardless of the type of commercial property involved,  a property's probable sale's price is determined by performing a Broker Price Opinion (BPO) and a Comparative Market Analysis (CMA.) These BPOs/CMAs will involve use of the sales comparison approach and, if a rental property, also the gross rent multiplier approach. Virtually every BPO/CMA for commercial, income producing property also will require a BPO/CMA that not only uses the sales comparison approach but also the income capitalization approach. 
 

Emerald Isle has a rather unique spin on commercial property. For starters, the town founders wanted limited commercial development. As a result, commercial zoning is limited primarily to either side of Emerald Drive (HWY 58) extending from Live Oak Street to the east to The Islander Road to the west. At present, the Town has roughly 25 undeveloped parcels of land zoned commercial.  Second, and equally problematic, most of the commercial space is tightly held by a couple of "original" families. Properties are passed down and do not enter the MLS. As a result, a real estate agent cannot create a business here specializing in commercial real estate. That poses a great challenge to commercial property owners because the differences between buying and selling commercial and residential property is as big as the differences between apples and oranges. 

 

So, when I get the opportunity to work with a commercial buyer or seller, I always enlist the aid of a colleague who specializes in commercial real estate in the Research Triangle. He can't list property in my MLS but he can and does advise me on the proper way to go about buying and selling commercial real estate. He's got my back and I've got yours.

​

So, if you are that Emerald Isle real estate unicorn interested in buying or selling commercial real estate, do not hesitate to contact me by voice or text at 919-308-2292 or by sending me an email to: Denis@CrystalCoastRealtyGroup.com to request a complimentary evaluation of your commercial wants and needs and the best way to achieve them. 

​