Impacts of Investing in Commercial Real Estate, Atlanta GA

Investment is a good opportunity option whether it is commercial or residential. For your money, commercial properties typically offer more financial reward than residential properties, such as rental apartments or single-family homes, but there also can be more risks. Understand the full pros and cons of investing in commercial  real estate, Atlanta GA is important so that you make the investment decision that’s right for you.

What is Commercial Property?

Commercial properties include following  components:

• Retail buildings
• Office buildings
• Industrial buildings
• Apartment buildings
• Warehouses

“mixed use” buildings, where the material goods may have a mix, office, such as retail, and apartments.There are nuances to managing each of these types of properties. To paint a general picture of what it’s like investing in commercial property, let’s examine the pros and cons of investing in a single-story commercial retail building, such as a community “strip mall”.

Positive reasons to Invest in Commercial Property

There are some positive points to invest in commercial property:

1. Income potential: 

Earning potential is the best reason to invest in the commercial real estate property over the residential properties. Commercial properties usually have an annual return off the buying price lies from 6% to 12%, dependent on the area, which is a much higher range than typically exists for single family home properties.

2. Professional relationships: 

Small business owners normally take pride in their businesses and want to protect their livelihood. Proprietors of commercial properties are usually not individuals, but LLCs, and work the property as a business. As such, the landlord and tenant have more of a business-to-business customer relationship, which helps keep interactions professional and courteous.

3. Public eye: 

Retail tenants have an assigned interest in maintaining their store and storefront, because if they don’t, it will affect their business. As a result, commercial tenants and property owner interests are associated, which helps the owner maintain and improve the quality of the property, and ultimately, the value of their investment.

4. Limited hours of operation:

 Businesses usually go home at night. In other words, you work when they work. Barring emergency calls at night for break-ins or fire alarms, you should be able to rest at night without having to worry about receiving a midnight call because a tenant wants repairs or has lost a key. For commercial properties it is also more likely you will have an alarm monitoring service so that if anything does happen at night, your alarm company will notify the proper authorities.
We have discussed 4 positive impacts of the investing in commercial real estate. It has some negative impacts too. 

1. Commitment of Time:

If you own a commercial retail building with five tenants, or even just a few, you have more to manage than you do with a residential investment. You can’t be an absentee landlord and maximize the return on your investment. In a nutshell, you have more to manage; and just as your tenants have to worry about the public eye, you do as well.

2. Required Professionals:

You better be licensed if you are going to handle the maintenance issues at a commercial property. The likelihood is you will not be prepared to handle maintenance issues yourself and you will need to hire someone to help with emergencies and repairs. You can hire professional private mortgage lenders in Georgia. 

3. More risks: 

Properties intended for commercial use have more public visitors and therefore have more people on the property each day that can get hurt or do something to damage your property. Cars can hit patrons in parking lots, people can slip on ice during the winter, and vandals can spray paint the sides of the building.


Read More: Tips to find Incredible Deals for commercial Real Estate Atlanta GA