Growing and expanding is commonly viewed as a positive step in the life of a company. A furniture company recently purchased a 13.13 acre piece of land in Baton Rouge for $3 million. The company plans to build a furniture store at the location. The purchased land is approximately one half mile from the company’s current store where it has been leasing a 55,000 square foot building. The company acquired the lease when it bought out a furniture store at the location is currently occupies. The lease expires in 2016. It is possible that another retailer will lease the 55,000 square foot building.
A real estate agent familiar with the purchase transaction noted that the furniture store prefers to own its real estate. The location area where the land is located has been described as a hot location. Acquiring commercial real estate can be a positive sign for a company or business that is growing or seeking to expand. Whenever a company is making growth-related changes or expanding, it is important to be familiar with the technical process associated with whatever step they are engaging in.
Successful commercial real estate transactions include due diligence, negotiations, contracts and contract drafting, contract execution, real estate closing and proper management moving forward. Real estate projects can also involve a number of parties, especially when building and construction are involved. Parties that can be involved include real estate agents, financial professionals, contractors and builders, subcontractors on a project and project managers at different phases of the project.
It is important for a company to know how to effectively manage every aspect of a large commercial real estate project from the beginning and throughout the project. Have the proper knowledge and guidance can help facilitate a smooth commercial real estate transaction that is a present and future benefit for the company.
Source: The Advocate, “Rooms To Go buys land, drops $3M for new Baton Rouge furniture store: ‘Siegen Lane is on fire’,” Timothy Boone, Oct. 19, 2015