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Why you need help with a commercial real estate closing

| Nov 19, 2020 | Commercial Real Estate |

Real estate purchases contain many moving parts and they are inherently complicated transactions.  Residential real estate is complex enough, but commercial real estate is doubly so.  There are more forms to fill out and more information to verify so that you make an informed purchase.

From considerations about existing tenants to the importance of infrastructure and business transition support, there are many unique considerations that make commercial real estate purchases more nerve-wracking than residential purchases.  Even if you’ve closed on a home before or own multiple investment residential properties, you may not have the knowledge to handle a commercial real estate purchase on your own.

Having help from someone with the experience necessary to review and analyze the sale paperwork and negotiate reasonable terms for the transaction can protect you from making a major mistake.

Investing in commercial real estate can be a dangerous gamble

People are fond of saying that real estate only ever goes up in value, but that isn’t a totally accurate statement.  While housing and commercial real estate have trended upward in general for decades, there have been many market downturns that have devastated those who look at real estate as an investment opportunity.

You could buy a brand new shopping complex full of retail tenants, only to have them all cancel their month-to-month leases because of an economic downturn.  You could purchase a commercial facility rented by industrial customers, only to have regulatory changes force them out of business or make their products obsolete.

Reviewing lease terms and market projections for different industries if you intend to retain tenants or keep them for an investment property is an important consideration often best left to the professionals.

More terms may be open to negotiation with the right guidance

Given how costly commercial real estate is and how many more details may be included in the purchase agreement, you may have more opportunities to negotiate.

Whether you intend to use the property yourself, retrofit it to make it into industrial-themed housing units or rent out individual commercial spaces, you want good terms when you make a major purchase.  Having help with negotiations can set you up for a better outcome and can let you focus on building your business prospects instead of arguing about contractual details.

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