Data from the Louisiana Department of Public Works shows a 1 percent increase in commercial construction projects. This increase, according to the report, is primarily the result of a 60 percent increase in renovation and expansion projects. These projects have netted a total of $235.4 million in development for the year, up $88 million since last year. On the other hand, new commercial projects are down by nearly 22 percent. Yet developers in East Baton Rouge Parish are optimistic about their opportunities for new projects in 2012.
According to the owners of local real estate developing companies, a recent increase in large-scale projects may indicate an upturn in commercial real estate development for the year. However, they say this increase in development depends largely on the willingness of creditors to invest in their projects. If the financial support can be acquired, there is significant potential for industrial growth in the area. Increasing growth in the commercial real estate market would also, they argue, carry over into increased residential projects. If their predictions are true, the result could be a great economic boost for the Baton Rouge area.
Yet there is always risk to initiating real estate development. One potential hindrance to new growth is navigating the complex legal system necessary for development to begin. For these developers, seeking legal assistance from experienced real estate lawyers is a practical necessity. Real estate lawyers often help developers solve legal problems such as title actions, breach of contract and other problems.
Perhaps most importantly, working alongside lawyers helps developers avoid legal problems in the first place, allowing for construction to take place without unnecessary complications.
Source: The Advocate, “Expansions lift construction,” Chad Calder, Feb. 21, 2012