Deciding to invest in commercial real estate in Alaska comes with a wealth of questions to answer. What type of property should I choose? When is a good time to invest? How do I navigate a commercial real estate lease? And most importantly, Where should I invest in commercial property? There is a reason the phrase, “location, location, location” is so prevalent in real estate and if you are contemplating a commercial property investment, Anchorage may have just what you need.
Anchorage offers numerous advantages to businesses— the low taxes, economic climate and housing market, to name a few. Below are several reasons why Anchorage may be the best location for your business:
Did you know that Anchorage is located just 9.5 hours from 90 percent of the industrialized world? Anchorage’s precise location in the Arctic Circle allows for easy access to international trade, with many flights from Asia to the United States able to increase their cargo and revenue by stopping to refuel in Anchorage. In fact, this is just one of many reasons why Ted Stevens Anchorage International Airport has been named among the best in the world for cargo weight and landings.
But that’s not the only means of transportation in Anchorage! The Anchorage Port and Alaska Railroad also help to connect local businesses to outside markets. The Anchorage Port is responsible for bringing 90 percent of consumer goods to Alaska, moving over 4 million tons of material every year. The Alaska Railroad does not connect to the lower 48 states, however it feeds into the Port of Anchorage, Port of Whittier, and the airport. Every year, the railroad moves an average of 6.33 million tons of cargo as well as over 400,000 passengers.
One of the many reasons businesses choose Anchorage is the lower taxes. The State of Alaska does not have sales, inventory, gross receipts or personal income tax. However, the state does collect a Corporate Income Tax which is graduated from 0 percent of taxable income for those below $25,000 and as much as 9.4 percent of net income for those above $222,000. Within the Municipality of Anchorage, both property and inventory taxes are collected.
Credits and incentives
There are dozens of credits and incentives available to Alaskan businesses. For instance, the Corporate Tax Exemption for High Growth Industries relieves certain small businesses (those registered as C-Coporations) from the state’s corporate income tax. Other similar credits offered include the Fire Protection Exemption that allows for an exemption of up to 2% of the building value if it contains an approved fire protection system and the Work Opportunity Credit that encourages business owners to hire new employees from specific group. As a result, they can claim 40 percent of up to $6,000 (a maximum of $2,400) of the employee’s first year of wages.
For more information about available commercial properties in Anchorage or more reasons to relocate your business to the area, contact Northern Edge Real Estate today!