Scarce commercial listings a challenge for new businesses

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Realtor Dayv Morgan

With interest rates on the rise, residential real estate availability in Maricopa has increased over the past few months.

But one form of real estate that remains scarce in Maricopa is commercial real estate. There isn’t a lot of it out there to be had.

The prices reflect it, too.

A high-profile example is the now-defunct Sunrise Diner property that closed this year.
The 2,800 square foot property, at 20917 N. John Wayne Parkway, is listed on Propertyshark.com for $25 per square foot per year, which translates to a rent of $70,000 per year, or $5,833 per month.

The property might be economically priced when you consider that five brand new spots at Edison and John Wayne Parkway, are going for $32-$34 per square foot per year, which would equate to rents of $7,466 to nearly $8,000 per month for the same square footage.
While there are cheaper prices to be found in the Valley, it all depends on where you look. High traffic areas with brand new construction will sometimes reach $40 per square foot per year. But, you can also find plenty of properties in the $15 to $20 per square foot range.

Casa Grande also has commercial properties from $15-$20 per square foot per year. One spot, also 2,800 square feet, was priced at $2,000 per month.

While the prices are certainly a barrier for business owners in Maricopa, the biggest problem is the lack of availability. One search shows there are 101 listings for retail and commercial properties in Chandler. Casa Grande has 22 spots available. While in Maricopa, there are just 10 properties.

Having the money available to pay the rent isn’t enough either. Most of the time, finding a property takes months and a strategy.

One example can be found with Mercantile Maricopa, a business which opened in May and was featured by InMaricopa a few months ago, where Isabella Guilford, the owner, described her experience.

“We’ve been thinking about it since December,” Isabella said. “We had the idea and then Vanessa McDill’s (former insurance office in the Shops of Maricopa Fiesta) opened up. It’s the spot I’d wanted all along.”

Guilford had a positive result in her search, but it took patience.

It’s possible to find commercial real estate, both in the forms of office space and retail space in Maricopa, but don’t fool yourself into thinking that it’s going to come easily or cheaply.

Dayv Morgan is a Maricopa Realtor and owner of HomeSmart Premier. 

 

This sponsored content was first published in the October edition of InMaricopa magazine.