Having the right place to do business can set you up for success. It can ensure that certain costs and expenses are minimized as fully as possible and that adequate space and resources are available to carry out the business’s functions.
On the other hand, those who inadequately represent their own interests when seeking out commercial real estate can find themselves significantly disadvantaged. In fact, some businesses wind up going under simply on account of bad commercial real estate transactions.
The Louisiana School Boards Association certainly hopes its recent real estate deal goes well. The organization recently bought a building in downtown Baton Rouge for $1.2 million. Its intent is to move all of its operations to that building. While the Association hopes to host training programs for school board members and superintendents in the building, it is also pleased to be closer to the state’s capitol, probably for lobbying and legislative purposes.
How this real estate works out for the Association is yet to be seen. Half of the suites in the building are currently leased, and the intent is for those tenants to remain there for the time being. This provides an opportunity to help offset the purchase price and thereby lower operating costs. This is an often utilized strategy, but it requires additional legal work to ensure that leases are appropriate and meets the building owner’s expectations and needs.
Negotiating a commercial real estate deal isn’t as easy as it may seem. There are a number of terms that have to be addressed, including, of course, the purchase price. This price can be dictated by a number of factors, each of which must be carefully considered before agreeing to a deal. With this in mind, those who are looking to start, move, or expand a business to new commercial real estate may wish to consult with an attorney before proceeding with a purchase agreement.