Understanding the many aspects of a commercial real estate transaction can be useful for buyers, sellers and businesses. A shopping center in Baton Rouge was recently sold for $1.5 million. A local property company made the purchase of the shopping center. According to the future property manager of the center, the shopping center has been mostly vacant for a period of time. The shopping center is 120,000 square feet total.
The company that purchased the shopping center plans on conducting a “large-scale” reconstruction and rehabilitation of the property. The company that purchased the shopping center also plans to create a “one-stop-shop” for the community, including a family doctor, dentist, nail salon, restaurants and a grocery store.
Commercial real estate transactions can be good for the community, as well as the acquiring company and, in a variety of circumstances, for the seller. Because of the positive impact commercial real estate transactions can have on the economy as a whole, it is important for all parties involved in a commercial real estate transaction to be familiar with the process of buying and selling commercial real estate to enjoy the benefits of a successful commercial real estate transaction.
There are a number of working parts involved in successfully purchasing and selling real estate. Commercial real estate transactions can oftentimes be complex. Buyers, sellers and businesses alike may discover they need help with contract negotiations or drafting a purchase agreement, for example. Once the transaction has concluded, and real estate closings have wrapped up, additional challenges may lay ahead when selecting a property management company, property manager and developing a property management agreement.
Whatever the circumstances, buyers and sellers of commercial real estate can benefit from knowledge of the commercial real estate process and how to anticipate and respond to challenges they may face. Knowing what is around the corner, as well as down the road, can be helpful for buyers and sellers of commercial real estate to understand.
Source: The Advocate, “Florida Boulevard shopping center sold for $1.5 million,” Timothy Boone, April 19, 2015