Carefully approaching a commercial real estate project with the proper tools and guidance may afford the best opportunity for success. A shopping center in Baton Rouge was recently sold for $2.47 million to an investor. According to reports, the company that bought the shopping center has the same address as a company that owns multiple pizza franchise locations. The representative for the buyer, however, noted that the pizza side of the investor's business is separate and there are currently no plans to put a pizza restaurant of the franchise the investor owns at the shopping center. The shopping center includes 19,000 square feet and 3,600 of it is vacant and includes three open spots which the purchaser plans to fill.
When approaching the exciting opportunity that may be a commercial real estate project, such as a retail real estate project, there may be a multitude of important considerations to secure a successful project. Retail commercial real estate often involves property managers and can sometimes involve management agreements. In some situations, the project may have an internal manager, however, at times, property-management companies may have to be engaged.
Additionally, various construction projects may be implicated in the purchase of new retail real estate and developers may also be involved. Because of the variety of important considerations and interactions that may be necessary to complete a successful commercial real estate project, contract negotiations and different phases of the project, such as drafting a purchase agreement, can be sensitive and have a significant impact on the project down the road.
By planning ahead when entering and engaging in a commercial real estate project, the success of the project may be better achieved. Carefully considering, reviewing and negotiating the project in advance may also benefit its success in the long term.
Source: The Advocate, "Central shopping center sold for $2.47 million," Timothy Boone, July 11, 2014