Commercial real estate (CRE) investment is considered one of the safest types of investments because the market fluctuations or current market conditions do not affect the CRE market as it does the other markets. CRE investments are long-term, stable, and have consistent cash flow compared to other real estate investments.
Investing in CRE in Georgia is one of the wisest things you could do in 2022 as the real estate market is thriving, especially in places like Atlanta. Many people are interested in buying commercial properties, as can be seen from many commercial real estate agencies in Duluth, Georgia. Here are some things you should consider before purchasing a commercial property in Georgia.
Picking the Right Property
Planning is the key to buying a commercial property. Take your time deciding what you expect from this investment in terms of returns and cash flow. Think about what kind of ownership you could afford, whether single ownership or fractional ownership. All these are essential factors that will lead you to the right property.
Based on these criteria, pick a property in a flourishing area within your budget that will give you a stable income. There are many real estate agencies in Duluth, Georgia that will help you choose the right property once you clearly tell them your requirements.
Location is the key, especially when it comes to commercial real estate. Before finalizing the property, do a recon on the business establishments in the area. Check if the connectivity is good, and the place is accessible to people. It would also be clever to examine what kind of businesses are thriving and lacking in the locality.
If the area is residential, businesses like clinics, medical offices, restaurants, and convenience stores will thrive. On the other hand, if it is a commercial area, you could rent it to warehouses or manufacturing and assembly units.
Know the Tenancy
Another critical factor to look at is tenancy. Get to know about the existing tenant and their business. It is essential to know about the rent amount, what kind of lease they are on, how long they have been renting the property, etc. You should find out about the lease structure, whether triple net or double net.
Analyzing all these factors will help you decide if the property you are choosing will be an excellent investment for you.
Analyzing the Market Risks
As mentioned earlier, the CRE sector is highly immune to market fluctuations. However, the business you have rented out your property to may not be. Hence, it is crucial to analyze the risks of your tenant’s business and the market. If the business is not thriving and is affected by the market fluctuations, then there may be difficulty in paying rent, which will, in turn, affect the cash flow.
Hiring the Best in the Business
It is essential to hire a good real estate agency that will help you analyze the risks and make a wise investment. There are many real estate agencies in Duluth, Georgia that will help you with closing the deal and with property management, lease agreement, documentation, and so on. It will be of immense help if you choose an experienced and knowledgeable realtor.
The author regularly writes about real estate business in Georgia and manages a real estate agency in Duluth, Georgia.