In Buckhead, commercial real estate has reigned king. However, economic struggles brought on by the Covid-19 pandemic have caused headaches for commercial real estate owners. Some are ready to sell and wonder if now might be a good time to divest themselves of their CRE. A number of factors go into deciding if now is the best time to sell your commercial space. For example, maybe you need to sell out of financial concern, or maybe you want to diversify your investment portfolio, and selling your CRE is the best way. Perhaps you own coveted warehouse space, and you’re looking to capitalize on warehouse demand. Whatever the reason, if you want to sell a commercial building in Buckhead, GA there are several factors to consider.
Rezoning Initiatives in Buckhead
Many CRE owners have been facing the difficulties of leasing commercial office space in the Covid-19 era. For much of 2020, office buildings remained ghost towns while employees worked remotely. The lowered demand for commercial office space put landlords in poor bargaining positions. Although we saw a glimmer of hope in the early summer of 2021, a new wave of the Delta variant is once again threatening in-person working. Eventually, employees will return to the office, but many CRE owners are understandably hesitant to wait it out.
Similarly, many retail space owners are battling the effects of online shopping, which rose to all-time highs during the pandemic. Their tenants are instead looking for smaller retail spaces to rent, in an attempt to mitigate the financial risks associated with unnecessary square footage.
New changes to rezoning initiatives in Buckhead may offer an interesting opportunity for property owners of retail space or office space. A recent push to widen the availability of multi-family housing units in Buckhead and the Atlanta area could give CRE owners a new avenue to selling their properties.
Finding the Right Buyer
Although owners could transform some CRE into residential property, there’s plenty of reason to believe that the commercial spaces will see profitability in certain sectors. For example, as consumers continue to favor online shopping, warehouse space is in high demand. Additionally, smaller retail spaces are now favored among many small business owners who have transitioned into hybrid stores that offer online services in addition to their brick and mortar shops. Ultimately, the name of the game in successfully listing your Buckhead CRE is finding the right buyer. Often, this can be accomplished by finding an experienced broker who has the right market insights and leads.
Preparing to List Your Commercial Property in Buckhead
Regardless of the type of CRE space you plan to sell, some action steps remain applicable to all. When you’re preparing to list your CRE, you need to see how a transfer of ownership will affect current tenants. Does your lease agreement contain a cancellation provision? If not, you may be limited in what type of buyer is interested in your property. The good news is that many investors will be happy to take on a property that is already occupied by reliable tenants.
Before you list your commercial space, you’ll want to do everything possible to move the process along smoothly. To incentivize potential buyers and to additionally cut down on back-and-forth negotiations, you should ensure that the space you want to sell is in good working order and is entirely functional. This doesn’t mean you need to remodel the building, but it does mean that the plumbing should work.
Finally, you can move the process along and even impress potential buyers when you have your paperwork in order and ready to go. You should locate and organize all title documents, lease agreements, revenue statements, and encumbrance paperwork. The amount of time it can take to track down these documents can come as a shock. Obtaining certified copies to replace lost originals often involves a back and forth with already short-staffed offices and administrations.
Buckhead Real Estate Attorneys
The commercial real estate climate in Buckhead is ever-evolving. Fortunately, the attorneys at McBride & Ceballos prioritize helping their clients move through CRE transactions smoothly. If you want to sell a commercial building in Buckhead, GA, contact McBride & Ceballos Commercial Real Estate today.