It almost goes without saying that money makes the world go 'round. This is especially true in the business world. Without capital, a business may be unable to meet its needs as it attempts to grow and expand. Having adequate cash on hand is imperative to pay human resource costs, maintain inventory, improve commercial real estate, and expand into new markets. While a business would ideally have this cash on hand from its own profits, this isn't always the case.
Recently on this Louisiana blog, we talked about the decision between leasing and purchasing commercial real estate. It is a big choice to make, and one that can have significant financial ramifications for years to come. While many believe that purchasing commercial real estate is most advantageous to a business owner, this is not always the case. However, those who choose to lease commercial property need to take certain things into consideration before signing off on a lease agreement.
Many business owners find themselves in a position where they need to locate real estate as a place to provide their goods and services. The question then becomes whether they should lease the property or outright buy it. The decision can be a challenging one, but it is one that should not be made lightly. Instead, business owners need to carefully consider their options and how choosing one option over the other will affect them in the future.The first way to acquire a business property is to lease it. This option may be appealing to those who have limited upfront cash flow, as well as those who may not have the appropriate credit history to obtain a commercial mortgage. Additionally, some find leasing appealing because the landlord is responsible for maintaining the property, which can reduce costs associated with property upkeep. In the long run though, a business owner who leases a property may wind up spending more money than an individual who purchases a property.Those who choose not to enter into a commercial lease may choose to buy commercial real estate. Of course, this will require more upfront money, but in the long run it may cost less than leasing. A business owner who buys a property will also be free to renovate the property as he or she sees fit to meet the business's needs. Also, those who purchase commercial property can benefit from any increased land value. So, those who purchase commercial real estate maintain much more control over the premises as well as the location of their business.Whether in individual is negotiating a commercial lease or the purchase of commercial real estate it is critical that he or she has a full understanding of the transaction process. Failing to do so could result in terms that are unfair to the business owner. This is why those who find themselves in this position should consider discussing the matter with a business law attorney who is reputable and trustworthy.
Buying and selling property is a major task. There's a lot at stake in the commercial real estate industry. Sellers may be looking to unload expensive properties for a profit while buyers may be looking for a long-term investment that makes sense for them from a business perspective. These deals are often complicated, not just because the properties themselves can be expensive, but also because buyers and sellers have to consider a lot more than price before taking the plunge.
If the time has come to refinance commercial real estate, it is important to know what to do. You may have man questions about refinancing commercial real estate and it is important to have answers to those questions and know what to expect from the process.
Commercial real estate and residential real estate are significant investments which is why it is important for purchasers and sellers to be familiar with the legal protections necessary to protect their investment. Different factors can lead to real estate litigation so it is essential to know how to protect the investment that is being made.
Commercial real estate transactions can be complex but with the right help, they can also provide excellent opportunities. Restaurant chain Romano's Macaroni Grill recently completed the purchase of the Sullivan's Steakhouse Chain which includes a restaurant in Baton Rouge. The purchase of the chain was completed for $32 million. The complete sale includes the purchase of 14 restaurants which includes the restaurant in Baton Rouge.
If you are planning on a commercial real estate purchase or starting up a business, you may have wondered about funding options including venture capital. You may wonder what venture capital is and if it is a good option for you so having some answers can help.
Commercial real estate opportunities are all around which is why those interested in a purchase or a sale, should be familiar with the process. A shopping center in Baton Rouge was recently purchased for over $4 million. A Baton Rouge entity purchased the 14,398 square foot shopping center for $4.075 million. The shopping center is comprised of 3 stand-alone buildings, a stand-alone restaurant and 2 strip mall shopping centers. It was built in 2000 and is near an office development and surrounded by neighborhoods. The shopping center boasts national, regional and local tenants.
In many instances, the importance of a successful real estate transaction cannot be overstated. This is true in the context of commercial real estate and residential real estate and the success or failure of a real estate transaction can have a potentially significant impact on a business.