For commercial real estate brokers, it’s important to know what economic incentives could be an advantage for your company. To better understand North Carolina incentives available to commercial developers, Price Commercial has put together a guide to walk you through how they work and how you can learn more about incentives specific to your area in the Piedmont Triad.
How Economic Incentives Work
Business relocation can happen for a variety of reasons, such as a need for more square footage, access to better talent, lower operating costs, or facility modernization. When relocating states, many businesses will have the opportunity to take advantage of different economic incentives that will help them attract and retain business investment in a new location as well as ongoing operating costs.
State and local government economic incentives are a major advantage for those in the commercial real estate industry. Commercial developers help bring companies into the area with young and educated employees, creating a positive economic impact wherever developers build. Because many localities are seeking growth, it’s important for commercial real estate developers to know how to leverage the various economic incentives.
These incentives are available at the local, state, and federal levels and can be both tax-related and non-tax-related. In many cases, commercial real estate developers can take advantage of incentives focused on economic development because by helping the local area meet its job-related goals, they’ll help your company lower its operating costs and expand your business.
Additionally, state and local governments view the growth as a cycle — the more jobs your commercial real estate business can bring to the area, the more salaries will be earned, which will result in more money being spent at local businesses and increasing the local economy.
Types of Economic Incentives
There are many different types of economic incentives that commercial developers can take advantage of. Ultimately, it’s important that the incentive you go for aligns with your business goals to ensure you’re truly benefiting from it. The types of grants, loans, and other incentives you’re eligible for will vary depending on your company’s expected revenue and economic impact.
Here are some economic development incentives for commercial developers to be aware of:
- Grants – When utilizing grants, your commercial real estate business will receive direct cash payments to help offset projects, training, or other business needs. To receive a direct grant, your business must demonstrate that it will create more jobs, increase property values, or generate additional sales tax revenue.
- Enterprise/opportunity zones – By agreeing to develop commercial property in a designated area, your business will experience exemptions from regulations, otherwise referred to as a tax-free zone).
- Payroll tax rebates – While payroll tax rebates aren’t available in every state, they are available for commercial developers relocating to the Piedmont Triad area. This means that the more people you hire, the larger of a payroll tax rebate you’ll experience.
These are only a few of the many types of economic development incentives that are commonly utilized by commercial developers. For help sifting through all the incentives available to you, reach out to the experienced team at Price Commercial.
Applying for Local Economic Incentives As a Commercial Developer
Now that you understand what effect tax incentives have on economic development, it’s time to take advantage of the economic incentives available for commercial real estate. North Carolina offers a targeted, performance-based incentive program that helps commercial developers throughout the Piedmont Triangle grow and thrive. To learn more or apply to the different economic incentives available to commercial real estate developers, visit the North Carolina Department of Commerce website.
How Price Commercial Can Help Navigate the Economic Development Process
Are you considering relocating or developing commercial properties to take advantage of a local, state, or federal economic incentive? If so, you’ve come to the right place. We understand that you have a lot on your plate — let the team at Price Commercial help you navigate the process so you have full transparency into your options. We can walk you through each economic development incentive to determine which aligns best with your needs, so you can spend your time focusing on relocating and expanding your business.
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