5 Things you didn’t know about Atlanta Commercial Real Estate
Purchasing commercial real estate is not something that every individual has experience with. Some individuals may be buying their very first real estate property of the commercial type while others have had previous experience with the real estate market but through residential channels. You will want to make sure that you are fully informed about any risks, obligations, and terms that will be used with your purchase of a commercial real estate property. It can be helpful to try to get some assistance and tips from professionals in the field whether you decide to buy Atlanta commercial real estate directly in the city or in the surrounding cities such as Alpharetta, Roswell, or even Cumming.
1. The demand for commercial real estate is growing. This means that you are likely to experience more competition from other individuals who are also looking to purchase Atlanta commercial real estate. This just means that you need to be proactive in deciding where exactly to purchase the property and when a good deal arises be sure to grab it up while you have the opportunity.
2. Atlanta commercial real estate has the potential to bring in a huge return but this is not always the case so know the various risks that you will be taking when you invest in a real estate venture for taxes and possible laws or regulations that need to be followed.
3. Purchasing and insuring Atlanta commercial real estate is more expensive than if you were to invest in a residential property. This means that you will need to have a larger down payment before you can get approved for a loan and the rate has the possibility of being higher than you expected initially. There are often additional taxes that you will be subjected to as well that need to be paid either annually or even a few times during the year if applicable.
4. Obligations are high when you purchase a piece of commercial real estate. There are various codes that need to be followed that are for the safety and protection of everyone. Some of these are fire protection, safety and workplace relations, and liability insurance for the public as well. Know what all of the rules and laws are for Atlanta before you sign the documents that make you legally responsible for the property. Dealing with these transactions can be a lot more tricky than with residential, so make sure all of your bases are covered.
5. Honor the existing leases. One thing that many people aren’t aware of or even forget to acknowledge when they buy Atlanta commercial real estate is that in the building many individuals or businesses may currently hold leases and if they do, as the new owner, you may be responsible for fulfilling the terms of these agreements until the end of the term. If you have any questions about your obligations as a new landlord make sure all of them are answered before you sign the documents and seek assistance from a lawyer or licensed commercial real estate broker to ensure that all of your bases have been covered.
Purchasing Atlanta commercial real estate can be risky but well worth it as well.