When thinking about a commercial real estate transaction, it isn't the average sale or purchase of a residential property that the average Louisiana resident may encounter. Commercial real estate can be purchased or sold for a variety of reasons and price points: from the smallest sale or purchase of land or a large acquisition or sale in the millions of dollars. There are plenty of reasons why a business may want to explore these options, most important for the reason of moving the business forward.
When it comes to real estate, the key is to success is purchasing at a lower valuation than it is worth or than it can be developed to be. Usually some elbow grease and investment is needed in order to develop commercial real estate to its full potential. By full potential, we mean its full valuation. In a large purchase by a local Baton Rouge company, nearly five acres of commercial real estate was purchased for nearly $1 million.
When jumping into a commercial real estate transaction, it may be your first time or a somewhat familiar process. Either way, every commercial real estate transaction has nuances that make each deal different from the deal done before it. Whatever the deal, commercial zoning laws will likely impact how the building or deal is done. Whether in how the building is repurposed, or how it is built, commercial zoning can greatly impact that decision.
Developers in Louisiana play an important role in the state's economy. By executing commercial real estate sales and purchases, businesses obtain the space needed to grow and become fruitful, or conversely, are able to wind down the affairs of the business should the business decide to sell. Many times these transactions go through without many hiccups in the process. Other times, however, significant disputes arise in when executing a real estate transaction, leading to litigation.
Many people immigrate to the United States in hopes of paving the way towards a future they could never have in their old country. In Louisiana and across the nation, it is possible for a person to start their own business, and see it grow and thrive. In fact, while only 13.5 percent of the population of the United States consists of immigrants, 27.5 percent of new small business owners in the United States are immigrants.
It used to be the thing for teenagers and other shoppers to do -- hang out at the mall. Malls had a variety of stores, so just about anyone could find one they liked. However, recently, malls and other commercial retailers have been suffering financially.
One of the primary concerns for entrepreneurs starting a business is start-up capital. Financing a start-up company is essential, which is why it is useful for entrepreneurs to be familiar with different options for financing their start-up business, how they work and the important legal implications that may be associated with each. One financing option to consider is venture capital. Start-ups that are funded through venture capital typically cycle through four phases.
When entering into a commercial real estate transaction, everyone expects the best but it is important to also plan when things go wrong and not according to plan. Unfortunately, commercial real estate transactions can sometimes go awry and may lead to litigation. As a result, it is important to be prepared to navigate the legal steps associated with a commercial real estate transaction and also to understand how to respond if problems with the transaction do arise.
Franchising opportunities are an option for business expansion. Recent reports note that a popular gourmet hot dog restaurant is expanding in Louisiana and another neighboring state. It was also reported that the restaurant chain has an eye on expansion into Baton Rouge and the entire south over the next five years. The restaurant chain intends to expand through franchises and corporate-owned restaurants. The CEO and president of the company, who is a certified franchise executive, noted the importance of the Baton Rouge market to the restaurant chain.
There are several reasons for wanting to refinance a commercial mortgage on commercial real estate. Securing the best financing and the right financing is important, so it is necessary to be familiar with the options available.