If you want to get into commercial real estate, there has never been a better time to start. Atlanta was featured as one of the top five global cities for investment, alongside the likes of London and New York.
So, opportunities await the right investor. If that sounds like the perfect plan for you, read our primer on commercial property investment and how to turn it into a success.
The Different Types of Commercial Real Estate
If you are new to commercial real estate, it can feel a bit overwhelming. That's because commercial real estate is a broad term, and within that category sit many different types of properties.
You'll have office spaces, retail stores, industrial sites, manufacturing plants, and warehouses.
Plus, there is much variety within those headings. Commercial office space might be a small building in a town or a city skyscraper. Retail space could be a small shop or a massive shopping mall.
Real Estate Market Trends
The real estate market is always vulnerable to economic conditions. That's true for commercial properties, too.
What this means for an investor is that you need to have an excellent understanding of what is happening in the economy. You'll want to know which market trends could shape your commercial world.
For example, rising unemployment rates could signal a downturn in the economy. This could impact commercial offices. Companies may look to downsize or avoid investing in an office expansion.
It's also important to look at local factors that can shape commercial investments, too. For example, an up-and-coming neighborhood could signal more demand for commercial real estate.
Metrics like real estate prices and population growth will help signal a popular locality.
The Finances Behind Commercial Deals
Commercial real estate is often on a larger scale than residential. So, there is a more complex financial arrangement that you'll need to consider when investing.
When seeking funding (whether a traditional bank loan or private finance), you'll need to demonstrate a sound grasp of the finances, including potential returns on investments.
More recently, crowdfunding platforms have emerged as an alternative financial source for commercial real estate.
Remember that with commercial real estate, you'll also need long-term finance to invest in the building and offer upgrades to your commercial tenants.
The Legal Side of Commercial Real Estate
When investing in commercial real estate, you must understand state law and how it could impact your decisions. For example, zoning laws will determine what use you can offer for that property.
You may also face stringent environmental regulations. You'll also need legal support to navigate the details of leases.
Commercial Real Estate: Turning It Into a Profitable Venture
Commercial real estate in Atlanta offers an exciting opportunity for any investor. The potential to scale fast is greater than anything you'll find in the residential world. But it's essential to be prepared and to know your numbers.
You also need the right property management support.
With PMI Atlanta OTP, you have the best people on your side. With our commercial background and extensive real estate knowledge, we can help turn your dream into a profitable venture. Find out about our services here.
