Commercial Real Estate in Auburn – Hometown Spotlights
When it comes to commercial real estate in Alabama, one of the top spots to watch is Auburn, Alabama.
Home to Auburn University and a hop, skip and jump away from Lake Martin, this desirable community in Lee County is growing and showing great potential for commercial investors.
Lee County – One of Alabama’s Top Areas to Invest
The market for commercial real estate is showing potential growth in Lee County as a whole, and Auburn is one of its most attractive communities for residents.
Both Auburn and Lee County as a whole are benefitting from the decay occurring in nearby Montgomery, the state’s capital. Not only does Auburn provide lower crime rates, there are more quality of life as well as a top ranking school system.
Comparing Auburn to markets like Huntsville (link blog #4) and Birmingham (link blog #6) is difficult, as the city has a smaller footprint. That being said, there is potential for a bit more growth in the future as the city expands.
It is widely known for its “college town” atmosphere, with fans of Auburn University’s football team, the Tigers, filling the centrally located Toomer’s Corner in the downtown area each football season. Yet, education isn’t the only industry driving the growing workforce.
The county as a whole has caught the eye of major corporations such as Briggs and Stratton, and boasts a Walmart distribution center and major automotive manufacturing plants – including Kia and Hyundai.
Auburn’s Population is on the Rise
One of the best ways to establish the potential for future growth in an area is through the demographic data. Population growth in Auburn is on the rise, which only stands to strengthen the local economy and attract future residential growth.
The job market in the county has grown by about 1.7% over the last year, with a projected growth estimated at 38.5% over the next 10 years. That’s a sturdy 5% higher than the national average.
Lee County’s population grew from 140,815 to 166,831 from 2010 to 2020 – a growth rate of 18% over 10 years.
Auburn is the number one place to live in the county and within the top 10 best places to live in Alabama, according to Niche.com, with a population of 65,508.
While the median home value is higher than the national average for 2022, coming in at $270,4000 compared to $229,800, most residents rent their homes – at an average cost of around $887, lower than the national average of $1,096.
The area delivers on a low cost of living, with data from Best Places(.net), estimating the cost of living 6.9% lower than the U.S. average.
A Commercial Real Estate Market Aligned with Growth
The quality of life offerings in Auburn, Alabama are rich, with a focus on academic excellence established by Auburn University – its 1,875-acre campus centrally located in the downtown area.
A quaint downtown area dotted with historical buildings is home to a uniquely strong small business with a thriving restaurant and bar scene.
Auburn University is a huge draw for the local businesses, with its undergraduate enrollment of 24,505 (as of fall 2020). It is also one of the most successful universities in the state and nation, ranked in the top 100 Best Colleges and National Universities by U.S. News & World Report.
Lee County is home to Auburn, a growing city with a small, college-town feel. Auburn University is centrally located in the city’s downtown and boasts historic buildings and attractive landscaping.
Roughly one quarter of the city’s workforce is employed by the university, with others indirectly employed through federal and state government positions tied to the school. The University is a huge draw for the town and has grown at a rate of 22.57% from 2010 to 2020.
Manufacturing is also a big part of the city’s industrial and economic identity. According to the city, the four industrial parks around the city house 49 different companies that collectively employ more than 4,700 people.
Why Buy Commercial Real Estate in Auburn?
Location is key when it comes to commercial real estate. It isn’t the most important factor, but a property situated in a great location aligned with the right demographics is set up for success.
When you invest in a commercial property – whether it be industrial, office, retail or mixed use, you are investing in its surrounding community. So, it’s important to make sure the community is showing stable growth if you are looking to get the best possible return-on-investment.
Auburn is a place where people want to live and work, and as it grows along with Auburn University, more support will be needed across the board. There will be a need for more local amenities as well as more industry to support the growing job market.
If you’re interested in putting your investment to work in Auburn, Alabama, Ironvest is ready to help you every step of the way. Reach out to our brokerage team for more information.