Fighting Low Tenancy by Targeting the Army

Are you a commercial investor who is experiencing difficulty with high vacancy?

Sometimes it’s a matter of strapping on your combat boots, and pulling out the big guns to fight – and conquer.

It takes ingenuity to become a commercial investor, and we’re guessing that you possess this quality, since you’re already here. The finishing touches for low vacancy or high tenancy include successful marketing. As an investor, it isn’t wise to take the first-come-first-serve approach. If you have low tenancy, this shouldn’t mean that anything goes either.  Stop and think: at times you merely need a tunnel vision to succeed. Hone your interest into one market alone. If you’ve exhausted all options, here’s one more to consider: the military.

In this post we’ll share tips for tapping into this military market we speak of.

What’s so good about this type of tenant? From an objective view:

· This group of tenants has a guaranteed, steady and stable income

· At or near military bases, more recruits mean more housing needs for military folks and their families

· Despite the typical discounts given to this market, stable tenancy is created from steady paychecks

· This paycheck extends beyond retirement, which means a long-term market of military folks and their families

· Following the payoff of the mortgage at an estimated 15-30 years, all the income is yours to keep passively, minus the property’s yearly expenses

Jason Hartman advocates this type of target market, mainly because:

· The military market is under the radar. It’s an under-served market with less competition

· This is also the case with self storage, mobile home parks, and multifamily complexes – all of which are used by the military when families travel from place to place.

· It should also be noted that due to the lower rates for military tenants, it would be beneficial to utilize efficiency apartments.

What else can you look for:

Location Is Key – Most investors recommend multifamily homes, mobile home parks or multiplexes within a 30-60 mile radius of army bases. Convenience and close proximity are of most importance for trainees that endure a grueling daily schedule.

Size Matters – Efficiency apartments appeal to folks that are on a lean budget.

Amp Up Amenities – Small luxuries can make a world of difference after a long day of work. Small investments like cable or play parks will help when marketing the property.

For investors who purchase properties close by military bases, you win a seal of approval from Jason Hartman – who is also a veteran investor when it comes to commercial real estate. (Top image: Flickr |USACE Europe District)

The Commercial Investing Center Team