Real estate opportunities in commercial properties can be full of promise; however, it can present some challenges, and sometimes a planned acquisition can be more difficult than expected. There is a lot to know when negotiating a commercial real estate transaction so it helps to be familiar with as much of the process as possible. There are a number of important considerations to take into account during the commercial real estate process.
This blog recently discussed contract disputes and breach of contract concerns. It is important for parties to a contract, which may include buyers, sellers, parties to a commercial real estate transaction and tenants, to understand how to effectively manage a contract dispute. Additionally, it is also important to be prepared to effectively negotiate, draft, review and execute a contract for sell or purchase.
In addition to the importance of understanding how to handle a breach of contract or other contract concern, it is useful to evaluate the development and commercial use of a commercial real estate transaction prior to purchase. The allowable use under current zoning laws should be understood and it may be necessary to seeking a rezoning before a local zoning board, a conditional use permit or variance.
In the initial phases, it is also important to perform due diligence and consider environmental concerns and issues that may impact the commercial real estate transaction. It is necessary to investigate a potential transaction and the parties, such as investigating an individual seller or corporate entity, and to examine the title for liens, easements, any pending litigation or unpaid taxes. It is also necessary to review any environmental compliance issues. Financing is also an important concern, as can be complexities associated with commercial lease depending on the circumstances.
Commercial real estate transactions can be complex but are an essential part of many companies, which is why it is helpful to be familiar with the process of transacting a deal. Familiarity with the process can help better achieve a successful real estate transaction.