Commercial real estate is big business. Whether focusing on property acquisition, development or commercial leases, the potential for financial reward and return on investment is significant. However, in order to ensure that a potential deal converts into a successful investment, buyers, developers and sellers need to have a firm understanding of the market and the process of these complex transactions involving commercial real estate. Currently, areas surrounding Philadelphia are the site of what could be described as a commercial real estate boom.
Conshohocken, Pennsylvania, is a former steel town that is located about 15 miles to the northwest from Philadelphia. Currently, many plans are in the works which, if completed, will result in a significant addition of new office space located in the town. Although the town had been slowly increasing the number of its commercial buildings throughout the last 40 years or so, these new proposed developments will represent the first big increase in commercial real estate since the economic recession hit. The proposed commercial real estate projects are aiming to take advantage of the city’s close proximity to key interstates and the commuter rail leading to Philadelphia, as well as land availability. The city is hoping to appeal to new workers of the younger generations who are seeking jobs in the tech, finance and healthcare industries while still preferring to live in the city.
Even when a potential buyer or developer sees the potential of an area, it can be difficult to bring that idea to fruition without skilled advice and experienced guidance. Much real estate, even that which is completely undeveloped, is privately owned and the first step in acquiring the property involves locating the owner. Negotiating a deal that appeals both to the buyer and the potential seller can also be tricky, especially if the current owner had not previously contemplated a sale.
Acquisitions involving properties owned by redevelopment authorities or municipalities pose their own set of unique challenges, and it can be difficult to negotiate through this unfamiliar territory. Experienced acquisitions attorneys can help simplify the process and ensure successful transactions by facilitating negotiations, performing necessary due diligence and maximizing the investments in all ways possible.
Source: New York Times, “Conshohocken, Pa., an Old Steel Town, Now an Office Hub,” Jon Hurdle, Sept. 2, 2014