The idea of purchasing Atlanta commercial real estate can be overwhelming to some. While a costly undertaking, this particular asset class can return tremendous profits over the short and long-term. Business owners should always exercise detailed and comprehensive due diligence every step of the way when investing in commercial real estate in Atlanta. An absence of proper planning can cause serious problems, inadequate financing, or substantial losses. A lack of due diligence could easily result in something as abstract as an environmental lawsuit.
Buying Commercial Property in Atlanta
Business owners should also remember that running everything from a restaurant to a retail outlet is best approached as a property owner as compared to being a renter. Buying a property rather than renting will result in asset appreciation that can only serve to help a growing business. Property owners can deduct the value of a loan or mortgage interest as well as depreciation on the value of the property when calculating company taxes each year. This is not possible as a renter.
Here are a few basic tips to consider with regard to commercial real estate acquisition.
1) Meet with your accountant to determine your investment budget and be aware of all potential hidden costs associated with a particular piece of commercial real estate in Atlanta. Work with an accountant who is well versed in commercial real estate deals.
2) Know the local real estate market in great detail. Prior to making a deal on commercial real estate it is best to understand what is being bought and sold in the local area. Note the local tax rates, environmental impact related issues, and overall land inventory.
3) Stay organized when it comes to financing. Keep in mind that being approved for a commercial real estate investment in Atlanta is never easy. Banks will scrutinize financial statements and calculate profits being generated before agreeing to loan investment funds. Always shop around for the best financing available and be aware of interest rate movements and trends.
4) Choose a contractor carefully if you intend to build. Look for construction professionals with knowledge of the industry and experience as a way to avoid problems down the road.
5) Consider the layout of the building that you will be investing in. Whether you plan to renovate or purchase a building in move-in condition, layout is a major concern in terms of overall operational efficiency. Some experts recommend hiring an operational efficiency professional to help guide and advise how best to layout a particular structure.
Consider these important and essential tips as they relate to commercial real estate acquisition in Atlanta and the surrounding communities. Contact Wiedmayer & Co. today to learn more about Atlanta commercial property acquisition and management.