To help ensure a successful commercial real estate transaction, it is important to do any necessary homework beforehand. A shopping center in Baton Rouge was recently sold to a group of investors. Investors purchased the shipping center for $885,000. The purchasers were reported to have acquired the property as a long-term investment opportunity. The property was viewed as a valuable investment property because the 9,796 square feet the property includes is 100 percent occupied. Tenants include a medical center, hair salon and various other retail stores.
There are many factors and variables to consider when embarking on a commercial real estate transaction. There may be business and strategic goals but understanding the legal implications, which may include financing concerns and tax considerations, as well as zoning laws, is important to completion of any successful real estate transaction. Depending on the transaction, other considerations may be important as well.
The management structure of retail properties, such as shopping centers and malls, can vary. Some utilize the help of on-site property management and others may be in need of property management companies. This may require the parties to a commercial real estate transaction to also consider property managers and management agreements. Construction and build-out concerns may also need to be properly addressed as part of the process. The commercial real estate process may include a variety of contract negotiations throughout the process and it is important that the interests of the parties are properly represented and understood.
As is true before making any major purchase, it is important to approach real estate transactions with as much knowledge of the process as possible. An educated approach can benefit any commercial real estate transaction.
Source: The Advocate, “Acadian Square shopping center sold in Baton Rouge,” Timothy Boone, Nov. 3, 2014