Waterfront Commercial Properties: The Ideal Location for Your Business

The location should not be overlooked when it comes to investing in commercial property.

There are many crucial factors to consider when looking for a property to run your business. The location is obviously one of them. You need to pay extra attention when it is a waterfront property.

These properties offer a unique combination of natural beauty, accessibility, and commercial potential only when they are in the right location.

With that in mind, we will explore the best locations in the US to invest in waterfront commercial properties.
So, let’s dive in…

Top 5 Locations to Buy Coastal Commercial Properties in the US

According to data from CBRE, the average capital rate for US commercial properties was around 6.4% as of the first quarter of 2023.

There is a chance that this rate may increase in the second quarter. That is why you need to invest in commercial properties in the right locations.

1. Navarre, Florida

● The median profit from rentals: $50,000/year
● Estimated capital rate: 8%

This is a small beach community in Florida. Over recent years, it has seen significant growth. If you are wondering, “Why should I invest in a commercial property in Navarre, FL?” Well, you should because of its strong tourism industry.

Each year, more than 4 million visitors come to this area. This makes it an attractive location for investing in commercial properties related to tourism. For instance, you can invest in waterfront hotels, vacation rentals, restaurants, and entertainment venues.

From Zillow’s estimation, the median listing price of commercial properties in Navarre is around $1.3 million. The cost per square foot is $307 on average.

2. Gulf Shores, Alabama

● The median profit from rentals: $49,000/year
● Estimated capital rate: 5.5%

This is a popular beach town located on the Gulf of Mexico. Just like Navarre, the tourism industry in Gulf Shores is thriving. Because of the beautiful beach and fresh seafood, nearly 6 million visitors come here to spend sizzling summer vacations. Additionally, many restaurants, shops, and other commercial properties cater to visitors.

Several large events and festivals are organized throughout the year in Gulf Shores. This can provide unique opportunities for commercial property investment.

Commercial properties in Gulf Shores typically list for around $1.6 million, or $196 per square foot, according to Zillow. Over the prior year, this represents a nearly 3.3% increase.

3. Bethany Beach, Delaware

● The median profit from rentals: $49,600/year
● Estimated capital rate: 5.26%

Visitors are drawn to the region because of its pristine beaches and stunning surroundings. Many tourists visit this place from the nearby states of Maryland, Pennsylvania, and New Jersey. Judging by an industry outlook conducted in 2018, there are a total of 871 businesses in Delaware.

With that said, there are approximately 2,134 industry jobs in this coastal town. The place is popular for having famous chemical industries, including Hercules, DuPont, and AstraZeneca. Along with that, many startups and IT firms have started operating in this state.

Therefore, medical executives and pharmacists look for residential properties in Delaware. We suggest buying explicit residential properties near Bethany Beach. Property prices are very reasonable, and you will get to enjoy the sea view.

Zillow estimates that Bethany Beach’s commercial real estate is listed for about $1.4 million on average. Consequently, it will cost $341 on average per square foot.

4. Tampa Bay, Florida

● The median profit from rentals: $43,000/year
● Estimated capital rate: 7.13%

A major metropolitan area on the west coast of Florida is Tampa Bay. In fact, it ranks 18th on the list of the biggest metropolitan areas in the United States. It is also home to over 3 million people. Apart from that, nearly 22 million visitors come to this place each year. Therefore, the tourism industry in Tampa Bay is largely growing.

Being a major metropolitan area, Tampa Bay has a diverse economy. The area is flooded with strong industries in healthcare, finance, and technology.

As a result, you can invest in commercial property in Tampa Bay that is related to these industries. These can be buildings, medical facilities, data centers, and so on.

Based on Zillow, the median asking price for commercial properties in Tampa Bay is around $1.2 million. Additionally, the mean cost of a square foot is $198.

5. Lake Anna, Virginia

● The median profit from rentals: $69,723/year
● Estimated capital rate: 12.08%

Around 200 miles of shoreline make it the second-largest lake in Virginia. This large reservoir is popular for fishing, boating, and other leisure activities. Visitors often come here from nearby cities such as Richmond and Washington. Therefore, Lake Anna’s tourist sector is not trivial. You can expect to make a great profit by investing in marinas, restaurants, and vacation rentals.

Even if you are a typical homeowner, you will receive a handsome annual ROI of 12.1%, according to Vacasa. Moreover, Zillow reports that the average price per square foot is $184 for commercial properties. This includes a median listing price of $590,000.

The area is divided into two sections. One side is for the public, with waterfront dining and marinas. In contrast, the other part is prohibited from commercial operations. So, you should remember that before investing in a commercial property in Lake Anna.

Investment Versatility in Waterfront Properties

Although waterfront properties are mostly used for rental or vacation spots, they can also be good for other commercial purposes.

A waterfront commercial property can help you start a new business or expand an existing one. It just has to be in the right location; that’s it. The aforementioned prime locations can offer the perfect combination of natural beauty and commercial potential.