Leasing vs Buying Commercial Real Estate in Athens, GA

Wondering Whether To Buy Or Rent Commercial Space in Athens, GA? Here Are The Pros & Cons.

As of January 2025, the commercial real estate market in Athens, Georgia, presents unique opportunities and challenges for businesses considering whether to lease or buy property. This article explores the pros and cons of both options, tailored to the current Athens market conditions.

Current Market Overview

Before diving into the pros and cons, it’s important to understand the current state of the Athens and greater Georgia commercial real estate market:

  • Georgia’s real estate market is experiencing growth, with the median home sale price at $384,900 as of 2025. [2024 Market Recap HERE]
  • Athens is part of the emerging secondary markets in Georgia, attracting increased investor interest due to lower costs and potential for high returns.
  • The commercial real estate sector in Georgia is seeing diversification, with industrial and multifamily properties performing well.
  • The office space market is adapting to new work trends, offering opportunities for flexible and innovative use of space.
  • Retail spaces are showing resilience, with major investments being made by companies like Kroger in the Athens area.

Leasing Commercial Real Estate in Athens

Pros

  1. Access to Prime Locations
    • Athens’ growing market allows businesses to secure space in desirable areas that might be too expensive to purchase outright.
    • The University of Georgia’s presence creates high-demand areas that may be more accessible through leasing.
  2. Flexibility in a Changing Market
    • With Athens’ real estate market evolving, short-term leases offer adaptability to changing business needs and market conditions.
    • Easier to relocate as the city’s development patterns shift, particularly in areas seeing new mixed-use developments.
  3. Lower Initial Costs
    • In a growing market like Athens, leasing requires less upfront capital, allowing businesses to invest in other areas of growth.
  4. Opportunity in Retail Spaces

Cons

  1. Rising Rental Costs
    • With property values increasing in Georgia, businesses may face rising rental costs over time.
  2. Missing Out on Appreciation
    • Given the steady growth in Georgia’s real estate market, lessees miss out on potential equity gains.
  3. Limited Control Over Property
    • In a competitive market like Athens, lessees have less control over property improvements and may face restrictions in fast-developing areas.

Buying Commercial Real Estate in Athens

Pros

  1. Equity Building in a Growing Market
    • With Athens being identified as an emerging hotspot, buying allows businesses to build equity and benefit from appreciation.
  2. Stable Costs in a Growing Market
    • Fixed mortgage payments can provide cost stability in contrast to potentially rising rental rates in a growing market like Athens.
  3. Tax Benefits
    • Property owners in Athens can benefit from significant tax deductions, including mortgage interest and depreciation.
  4. Control Over Property in a Developing City
    • As Athens continues to grow (with more UGA football national titles expected!), property owners can customize and improve their space to meet changing market demands, which is particularly important in the evolving retail and office sectors.

Cons

  1. High Initial Investment
    • With Athens’ median home price at $324,000, and a growing commercial base with properties ranging from $50,000 to over 1 million, buying requires a substantial upfront investment.
  2. Market Risk
    • While Athens is growing, there’s always a risk of market fluctuations affecting property values.
  3. Less Flexibility
    • Owning property in Athens may limit a business’s ability to quickly respond to shifts in local market trends or relocate to emerging hot spots.
  4. Maintenance Responsibilities
    • Owners are responsible for all property upkeep, which can be significant in older buildings common in parts of Athens.
  1. Adaptive Reuse and Mixed-Use Developments
    • Athens is seeing a trend towards converting old buildings into new, functional spaces and developing mixed-use properties that combine residential, commercial, and recreational spaces. The Bottleworks on Prince Ave is a great example.
  2. Coworking Spaces
    • There’s an increasing demand for coworking spaces in Athens, driven by freelancers, startups, and small businesses looking for flexible office solutions. Runway Cowork and Athens Cowork are among the popular options in town already.
  3. Sustainability Focus
    • Customers in Georgia’s commercial real estate market are placing a greater emphasis on sustainability, seeking energy-efficient and environmentally friendly properties. Both the Classic Center and Indigo Hotel are LEED certified.

Your Situation Matters Most

The decision to lease or buy commercial real estate in Athens, GA, depends on various factors including your business’s financial situation, growth projections, and long-term goals. Athens’ position as an emerging secondary market in Georgia makes it an attractive location for both leasing and buying, depending on your specific needs.

For businesses looking for flexibility and lower initial costs, leasing might be the better option, especially given the evolving nature of the Athens market. On the other hand, businesses looking for long-term investment and control over their property might find buying more appealing, particularly with the potential for appreciation in this growing market.

We invite you to REQUEST A FREE CONSULTATION with our real estate advisors. Our experienced team at 5Market Realty understand the nuances of the Athens market, including growth areas, zoning changes, and upcoming developments. We can provide valuable insights into which option aligns best with your business strategy in this beautiful and dynamic city.

Featured Image 📸: Courtesy of Bottleworks

Athens_GA_mixed-use-buildings