Commercial real estate development is thriving in Anchorage
by Jason Lamb | KTUU
While times are tough in the residential housing market, Anchorage’s commercial real estate is thriving.
New office buildings and businesses have been sprouting up all over town, leading one to wonder why commercial development hasn’t been hit as hard as the residential market.
At a forum downtown Monday, business leaders met to discuss the real estate business boom. Chris Stephens, a commercial real estate broker, was one of the featured speakers.
When it comes to the difference between homes and commercial real estate, experts say don’t get confused, Stephens said.
“I think commercial real estate and residential real estate are two different markets,” he said. “While they both have to do with real estate they are really, really different.”
And as demand remains strong, Stephens said the old adage rings true: The three most important aspects of real estate are location, location, location.
“Anchorage has a lot to offer, demographics are outstanding, we have a young highly educated population,” he said. “All those factors come together and make Anchorage very attractive for retail development and as you’ve seen there’s been a tremendous amount of retail development in Anchorage in the last 10-15 years.”
One example of that development is Craig Smith’s car wash, which opened last November.
“We’re the first ones developing this lot,” said Smith, who sold an adjacent lot to Walgreen’s drug stores. “We’re real happy about the development; we’re going to work together to bring in business.”
Smith can look forward to future development, Stephens said.
“We’re going to see a real increase in activity,” he said. “Commercial real estate is a lagging indicator. It follows what the economy does, (and) we’ve had 19 years of growth. I don’t know where else in the country that’s had that. That’s really the driving factor.”
Anchorage is unique in its commercial real estate market. Lower 48 states aren’t fairing nearly as well. It’s clearly a hot topic around town. Monday’s forum downtown sold out in less than 10 minutes.
