Commercial real estate can play a pivotal role in business growth. Those businesses that have spaces that are too small or that are not conducive to a business’s operations can see stunted growth.
In some instances, a business’s commercial real estate is so restrictive that the business is preventing from performing as it would like. In this sense, commercial real estate can dictate business success. This is why Baton Rouge businesses need to carefully deal with matters pertaining to commercial real estate, lest they leave themselves restricted and at a financial disadvantage.
A Baton Rouge pipe maker recently decided that it needed to expand its operations by acquiring land in Lake Providence to build a 40,000 square-foot facility. By doing so, the business will expand its operations. The pipe maker hopes to add 50 jobs and increase its milling, fitting, and welding capacities. Although the deal took months to close, the business likely got a good deal considering that the location of the new facility is in an economically depressed area.
The location itself may have other advantages, too. The facility will sit within easy access of the Mississippi River, as well as major Interstates and railway lines. The business also hopes that they will attract customers and other manufacturing operations to the area. This, in turn, may lead to decreased supply and delivery costs. It may also help them expand operations to reach new consumer bases.
Commercial real estate can be a huge investment. In fact, the deal discussed above came in at $2 million. Regardless of the price tag attached, though, commercial real estate can be the heart of business growth in development. Successfully acquiring appropriate commercial real estate can be challenging, however, especially considering how much negotiations can fluctuate.
For this reason, those who foresee themselves engaging in commercial real estate transactions should consider seeking guidance from a skilled business law attorney.