According to Visit Orlando, Orlando received over 74 million visitors in 2023: approximately 68 million domestic and 6 million international.
The destination's visitor volume makes it a hotspot for commercial property investments, with opportunities in various sectors like multifamily, retail, office, and industrial.
Whether you're new to investing or expanding your portfolio, you want your investment in Orlando commercial properties to be both profitable and sustainable.
Get started with these essential property investment tips.
Understand the Local Real Estate Market
The Orlando real estate market is one of the most dynamic in Florida, driven by the city's robust economy and world-class tourism. Understanding the market means looking beyond property values to consider factors like:
- Supply and demand
- Vacancy rates
- Rental prices in other areas
Keeping abreast of commercial real estate trends will allow you to focus on properties that align with current and future market needs, maximizing your investment potential.
Location Is Key
Location remains one of the most critical factors when investing in Orlando real estate. Properties near major attractions like Walt Disney World, Universal Studios, and the Orange County Convention Center see high foot traffic and attract businesses catering to both locals and tourists.
Consider proximity to key transportation hubs, highways, and residential developments, as these factors often boost the desirability and value of a commercial property. Additionally, emerging neighborhoods with planned infrastructure improvements can offer significant growth opportunities for investors.
A well-located property can command higher rents, reduce vacancy rates, and offer better returns over time.
Assess Potential Risks
Every investment comes with its share of risks, and commercial property investments are no exception. Orlando's market, while promising, is not immune to fluctuations caused by factors such as:
- Economic downturns
- Changes in tourism
- Shifts in local zoning laws
For instance, areas heavily reliant on tourism may face challenges during slow seasons or economic slumps. Additionally, zoning restrictions can limit the type of businesses that can occupy certain spaces, impacting your rental pool.
Thoroughly assessing the risks, such as market saturation in specific sectors or unexpected changes in property taxes, will help you make more informed decisions and safeguard your investment.
Factor in Long-Term Maintenance Costs
When purchasing commercial properties, it's easy to focus on the initial acquisition costs, but long-term maintenance is just as important. Central Florida's warm, humid climate can contribute to faster wear and tear on buildings, with areas like roofing, HVAC systems, and exterior facades bearing the brunt.
Consider budgeting for regular maintenance and repairs to preserve the property's appeal and prevent costly renovations down the line. Having a building maintenance strategy in place can help you minimize unexpected expenses and keep your tenants satisfied.
Hire a Property Management Company to Grow Your Commercial Property Investments
Orlando is more than just a tourist destination: it's a city on the rise. With a growing population and expanding industries like tech, healthcare, and education, the city offers a range of opportunities for property investors.
Ready to leverage Orlando's growth opportunities with commercial property investments? PMI Property Alliance is here to help. With over 20+ years of experience in the property management industry, we can help you identify the best Orlando commercial properties for your investment portfolio.
Get in touch with our friendly and professional team to discuss your real estate investment goals.
