Investing in commercial real estate or industrial properties in Atlanta is noticeably different than investing in traditional residential real estate. Here are a few simple yet important tips on how to invest in this class of property. First, it is important to determine what type of investment property you prefer. Deciding on the size and location of the property are probably the first and most important steps. You may also wish to consider entering into a partnership.
Using an Atlanta Property Manager
It is also essential to take into account how much work will be required to bring a piece of Atlanta industrial real estate up to your specific standards. Consider how much work and money will be necessary to make a property fully functional and usable. Also, enlist the services of an Atlanta property management company and an Atlanta property manager if needed. Of course, you must decide early on whether you are looking to own or lease. Owning commercial real estate has its advantages in that equity is built and the asset will appreciate over time.
Commercial real estate also depends upon certain key investment concepts. Factors such as loan-to-value ratios are key to working with a lender in terms of how much you will borrow and what the property is actually worth. Capitalization rate is equally important as it looks at the income of a property divided by the total value of that property. Vacancy rate, the percentage of other properties that are vacant in the area for a given time, must also be addressed. Usable and rentable square space must be discussed as.
Start Planning Early
If you are thinking about purchasing Atlanta industrial real estate, it is best to research usable and rentable square space. With so many questions that must be answered prior to investing in commercial property in Atlanta it is best to take the time and start planning early. Visiting multiple properties and doing a generous amount of due diligence is highly recommended. When touring properties, it is a good idea to take photographs or even videos of each space to review afterwards.
Protect Your Atlanta Industrial Real Estate Investment Dollars
Finally, as discussed above one of the most essential aspects of purchasing commercial real estate in Atlanta is getting the location right. Properties located near hospital facilities, colleges, or downtown will typically have a higher price tag and sell more quickly. As an added note, always inquire as to why the owner is selling a property to protect your investment dollars from potential problems later down the road. Zoning and code information should also be checked and understood prior to making a purchase. Contact Wiedmayer & Co. today to learn more about Atlanta industrial real estate opportunities.