Posts Tagged ‘Coldwell Banker Commercial Metro Brokers’

Reasons to Invest in Commercial Real Estate

June 8, 2015

buy_commercial_real_estateThere are many reasons to invest in commercial real estate, especially in metro Atlanta and north Georgia. I’ve seen many savvy investors taking the steps to purchase a commercial property such as a retail store, shopping center or more. These types of opportunities won’t last long, so it’s time to get off the fence!

Here are some of my reasons that you should look at the commercial market today:

Income Potential

The best reason to invest in commercial over residential rentals is the earning potential. Commercial properties generally have an annual return off the purchase price between 6% and 12%, depending on the area, which is a much higher range than typically exists for single family home properties (1% to 4% at best).

Professional Relationships

Small business owners generally take pride in their businesses and want to protect their livelihood. Owners of commercial properties are usually not individuals, but LLCs, and operate 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.

Public Eye 

Retail tenants have a vested 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 aligned, which helps the owner maintain and improve the quality of the property, and ultimately, the value of their investment.

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.

More Objective Price Evaluations 

It’s often easier to evaluate the property prices of commercial property because you can request the current owner’s income statement and determine what the price should be based on that. If the seller is using a knowledgeable broker, the asking price should be set at a price where an investor can earn the area’s prevailing cap rate for the commercial property type they are looking at (retail, office, industrial, etc.). Residential properties are often subject to more emotional pricing.

Net Leases

There are variations to net leases, but the general concept is that you as the property owner do not have to pay any expenses on the property (as would be the case with residential real estate). The lessee handles all property expenses directly, including real estate taxes. The only expense you’ll have to pay is your mortgage. Companies like Walgreens, CVS, and Starbucks typically sign these types of leases, as they want to maintain a look and feel in keeping with their brand, so they manage those costs, and you as an investor get to have one of the lowest maintenance income producers for your money. Fewer consumer protection laws govern commercial leases, unlike the dozens of state laws, such as security deposit limits and termination rules that cover residential real estate.

These are some of the best reasons that make investing in commercial real estate appealing. Do you have any additional items you’d like to add? Sound off below!

Finding Potential Commercial Leasing Clients

November 3, 2014

commercial_leasingMost experienced leasing brokers agree that establishing a commercial tenant population usually requires representing landlords for a period of time. When you have a lease listing, you attract tenants and some number will not have an interest in your listed space but allow you to assist them with finding what they do want. Prospecting for landlords can include small to mid-sized inline shopping center owners, office building owners, retail property owners or industrial property owners. You can locate an ownership list if you want to purchase leads or you can approach landlords directly and solicit a listing. (more…)

Using Your IRA to Purchase Commercial Real Estate

January 27, 2014

ira_commercial_purchaseIt sounds too good to be true: As an IRA holder, you can use your retirement funds, prior to retirement age, to purchase commercial real estate as an investment inside your retirement account without incurring penalties or taxes. Depending on the account structure, you can even purchase these investments using a checkbook tied to your IRA funds.

Since 1974, IRA and 401(k) account holders have had the option to control the ways in which their retirement monies are invested, including real estate, tax liens and other alternative assets. Because the investment is made on behalf of the retirement account, just like the IRA investing in stocks and bonds, the acquisition is made without triggering a taxable event. (more…)

Is Now a Good Time to Buy a Small Business?

June 17, 2013

buying_small_businessThe economy has created many challenges for hard working individuals as well as large companies. One of the unfortunate by-products of these difficult times has been layoffs and forced early retirement for many people. The question quickly becomes “what to do?”, since many folks are not ready to stop working.

What can be done to fill the void and provide more control and equity moving forward? One answer is to consider small business ownership as a solution. Owning a small business can provide excellent income and future equity while taking advantage of prior work experience. (more…)

The 123’s of Warehouse Buying

May 20, 2013

warehouse_buyingAs commercial real estate continues to make a comeback, many buyers who are looking to expand their various businesses are beginning to look at the properties currently on the market. Warehouse space is one of the first items that a growing business will look for when it comes to storage or creation of goods.

Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses and more. They are generally plain buildings in industrial areas, and include loading docs to load and unload goods from trucks.

If you are thinking of purchasing a warehouse, you should consider the following: (more…)

Types of Commercial Real Estate Leases

May 16, 2011

When searching for a location for your business, one of the most viable options is a commercial lease. Rather than having to pay financing on a purchased property, a lease allows you access to a space, so that you can immediately begin doing business. The type of lease you choose could greatly affect your business in the future, though.

There are several different types of commercial real estate leases available: Net lease, modified net lease, and gross lease otherwise known as a full service lease. (more…)

Questions to Ask Before Signing a Commercial Lease

December 27, 2010

When you rent office space, there are many things to consider and several key questions to ask before you sign the commercial lease. Each lease agreement is different and you’ll want your commercial Realtor to help you negotiate lease terms that could protect you in the future.

How long do I plan to be in the space?

Estimate how long your business can operate effectively in the space you want to lease. Do you need a short-term or long-term lease? Do you want specific renewal option periods? (more…)

Buy an Existing Business or Start One Up? Part I

November 22, 2010

Owning and operating a business is a great way to take control of your future. Once you have decided to be your own boss, you have to consider whether you want to buy a business that is up and running (a growing concern) or start a business from the ground up (a start-up). Each of the options has advantages and disadvantages. You will also want to consider whether or not you want to own an independent or franchise business.

If you want to build a business from the ground up – otherwise known as a start-up – you’ll need a comprehensive business plan. Your business plan will need to include the means by which you will get customers (a marketing strategy) and how the business will operate on a day-to-day basis. It will estimate the expenses required to build out space and install required furniture, fixtures and equipment. You’ll also want to include sales projections (a Performa) and expenses required to support sales. Here are some other things to include in your business plan: (more…)

Metro Brokers Runs Dual Brands…………………… Better Homes and Gardens Real Estate and Coldwell Banker Commercial

December 11, 2009

A new chapter has begun for Metro Brokers and it’s turned the Atlanta real estate market on it’s heels. We are the first real estate broker to run dual brands. As of this week, our brand name has changed. For the residential brand, we are now Better Homes and Gardens Real Estate Metro Brokers. For our commercial brand, we are now Coldwell Banker Commercial Metro Brokers.

I weighed many options and this was the best decision for the company, our agents and our customers.

It’s been an exciting week for Metro Brokers. We made the announcement on Monday and acquired approximately 150 agents immediately. We launched a new, faster, easier to use website that the agents love. And now, we’re working through the process of swapping out all of our yard signs, business cards, name tags, brochures, flyers, and hundreds of other marketing items with newly branded items.

(more…)