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 two or more businesses engage in a contract, it is to ensure that the details of the deal go as discussed and to ensure that each party agrees to uphold their end of the bargain. Most contracts between companies include clauses that mention what could happen if one party fails to uphold their end of the bargain, also known as breach of contract. While breach of contract is never the desired outcome for either party, it sometimes happens. The company affected by the breach may decide that it is in their best interests to seek damages for the costs associated with the other company's breach.
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.
If you are one of the percentage of Baton Rouge residents to fully realize the "American Dream" and own your own business, congratulations. It takes a lot of perseverance and hard work to ensure that a business is successful and projecting even greater returns than years' previous. So, when it's time to retire or move onto the next venture, what are some things a business owner should think about? Selling a business is more about dollars and cents, for starters.