Securing appropriate commercial real estate is imperative in order for businesses to function properly. If a place of business is too small, then a company’s growth may be stunted. If there are too many restrictions on the use of a property, then a business may be hamstringed in its operations, thereby preventing it from providing the amount, quality, or timeliness of work desired.
Even the cost of a commercial real estate can prove burdensome and threaten the financial viability of a business, which is why these matters need to be carefully considered before commercial real estate is bought or leased.
Such considerations were likely made prior to one recent purchase in the Baton Rouge area. Recently, Bead Sale, LLC, a Baton Rouge-based business, purchased the old Sam’s Club at the Cortana Mall for $5.6 million. The 134,000 square-foot space will likely be used as warehouse for the company, which imports beads and party supplies as well as operates two online businesses that sell bead-related items.
While the exact terms of this deal have not been released, there was probably significant consideration and negotiation of the uses to which the building can be put. Apparently the agreement indicated that the premises could not be utilized for the operation of a discount store. However, the agreement also contained a provision that exempted uses related to online fulfillment centers and warehouses.
Regardless of the size of one’s business, $5 million is a lot of money. Spending that much cash without fully understanding what you’re getting into can put a business at an extreme disadvantage. This is why contracts related to commercial property need to be carefully negotiated.
The cost of the premises, the uses to which it can be put, and any zoning and environmental issues should all be commemorated in writing only after a business feels like the deal is fair and favorable. Qualified attorneys stand ready to assist with these endeavors.