There is much confusion as to what represents a deal in the Atlanta Commercial Real Estate market. Many Atlanta Commercial Real Estate investors are looking too buy but don't know how to sift through all the properties.

Currently there are many Atlanta Ga commercial properties in distress. Some are breaking even or have negative cash flow while others are fully leased up. What we are seeing in this current market is properties that have negative cash flow need an all cash buyer or assume the loan with money down as lenders won't loan out on properties in trouble.

This really leaves mainly 2 options. Properties that are backed by a lease of a non-national tenant (higher risk) or that have a national tenant (more secure) with a corporate guarantee and a long term lease.Generally mom and pop type tenants have the most risk and generally the buildings are older and have deferred maintenance. National tenants generally will pay less per square foot for the building to lease which will yield in this market most likely an 7 to 9 percent annual return  on investment before debt service.

Mom and pop tenants usually you might get a 11 to 13 percent return but your extra gain is usually offset by the high chance of failure,re-leasing,and tenant improvements for the new business going in.

It is important when looking to purchase that you have a Atlanta Commercial Real Estate broker to assist you in evaluating a deal.

Joel Owens 678-779-2798