We are excited about the opportunity to be the first to share our observations on Salem’s commercial real estate market with the Salem Business Journal. As leaders in Salem’s commercial real estate community, we believe the city of Salem is on the cusp of a tremendous opportunity to create a safe, clean, interactive, and inclusive city for its businesses and residents. This makes it an unparalleled opportunity to rethink and redevelop Salem for the future.
As the state capital, Salem enjoys the stability that public employment offers, despite its modest size. This stability allows for significant changes. This includes Project Our Salem: a massive rezoning, part of the Salem Comprehensive Plan, which aims to better understand the city and how the community wants to grow over the next two decades. This project offers numerous opportunities for potential buyers and sellers by implementing a more flexible zoning code for many of Salem’s existing buildings, as well as vacant lots. One of the goals is to encourage mixed-use along major public transportation corridors and allow for the creation of “transportation hubs” in neighborhoods. This is a major initiative for the city; it affects thousands of properties and will define the future of the community for the next 20 years.
Major redevelopment plans have already begun. Over the past two years, there has been a global shift in the way we work and purchase goods, directly impacting local brick-and-mortar real estate. The former Nordstrom in Salem Center is planned to be transformed into multi-family housing. This is exciting as it will attract more people to the center and create opportunities for the retail and hospitality industries. Along with the city’s desire to encourage more affordable housing comes the opportunity for walkable commercial and retail space in those communities. In South Salem, at Kuebler and 27th Streets, the soon-to-be-developed Costco single-family and multi-family housing units will pave the way for national, regional, and local anchor tenants of grocery, retail, and recreation to move in.
As we emerge from the pandemic with opportunities, challenges have also risen for landlords, tenants, buyers, and sellers of commercial real estate. Challenges such as supply chain restraints, consultant and professional service delays, and permitting process obstacles, have slowed (due in part to the adjustment of working from home) the negotiation process and closing timelines of many commercial real estate transactions; not to mention the current global pandemic we are emerging from.
However, interest rates remain low, and with the federal government speculating about possible increases, it’s the ideal time to invest. As a buyer, having your finances in order, and as a seller, having your property information at hand, will facilitate the transaction. This is where responsible property management and good communication between all parties are key. With our experience, knowledge, and contacts, at Coldwell Banker Commercial we are prepared to guide our clients through any process and help Salem achieve a future of opportunity.
Insights contributed by CBCRE Brokers, Alex Rhoten, Jeff Miller, Shadya Jones, and Pam Rushing.
