This blog recently discussed the exciting potential commercial real estate transactions can hold for expansion and growth. Commercial real estate transactions present exciting opportunities but it also pays for parties to the commercial real estate transaction to be sufficiently familiar with the process. A number of different factors can result in a real estate transaction ending up in a real estate litigation situation. To avoid an unwanted real estate litigation situation, it is important to understand the many aspects of a commercial real estate transaction up front.
Growing and expanding is commonly viewed as a positive step in the life of a company. A furniture company recently purchased a 13.13 acre piece of land in Baton Rouge for $3 million. The company plans to build a furniture store at the location. The purchased land is approximately one half mile from the company's current store where it has been leasing a 55,000 square foot building. The company acquired the lease when it bought out a furniture store at the location is currently occupies. The lease expires in 2016. It is possible that another retailer will lease the 55,000 square foot building.
The commercial real estate closings process can seem daunting, however, knowledge of the process and the proper guidance throughout the process can help make it more manageable and successful. At times, caution and special diligence are required which is why it is important to be familiar with the complete process prior to embarking on a commercial real estate transaction.
Understanding a purchase agreement is important when selling your business. Understanding the purchase and sale agreement helps the parties know what to expect, what to negotiate and what expert guidance may be needed.
Commercial real estate and construction projects provide excitement and opportunities for local areas. A new construction project promises to add to the Baton Rouge skyline. The headquarters of the Water Institute of the Gulf will be newly situated on the Mississippi River. The building will comprise 33,000 square feet, including an interpretive gallery, exhibits, research labs, offices and meeting rooms. The marketing director for the commercial real estate trust developing and managing the Water Campus noted that the goal was to create an iconic structure for the Baton Rouge skyline. Area leaders note it will aid in the revival of the downtown area.
Commercial real estate transactions are exciting growth opportunities for communities and businesses, as can be seen by one recent deal. A 2.8 acre piece of land in Baton Rouge was recently purchased for $1.6 million by two companies that intend to build a memory-care facility on the land. The property was sold by a construction company which is building another planned-unit development where the memory-care facility will be located. Construction is expected to begin within a month on the 48-unit long-term care facility. The facility will be approximately 34,000 square feet and is expected to be valued at $5.2 million. The facility is expected to open during the summer of 2016.
When approaching a management agreement, it is important to thoroughly understand the terms that are being agreed to. It is also important that every detail that is discussed is included in the agreement and that the property owner entering a property management agreement understands which terms may be standard and which may not be. There are a number of sections of a typical property management contract to pay careful attention to.
There are a number of important considerations facing anyone contemplating investing in commercial real estate; this can also be true for experienced investors as well. Initially, it can be important to ask a number of questions to ensure that the potential investor has a good idea of what they are looking for in a commercial real estate investment. There are a number of questions related to the nature of the property, use of the property and the overall investment that a potential investor can ask themselves to be sure they know what they are looking for.
Investing in any type of real estate, including commercial real estate, can be an important investment for an individual or a company. Unfortunately, there are a number of things that can go wrong when endeavoring into commercial real estate and commercial real estate transactions that it is important to be aware of. A number of factors can intervene during a commercial real estate transaction and present challenges.
Understanding the many aspects of a commercial real estate transaction can be useful for buyers, sellers and businesses. A shopping center in Baton Rouge was recently sold for $1.5 million. A local property company made the purchase of the shopping center. According to the future property manager of the center, the shopping center has been mostly vacant for a period of time. The shopping center is 120,000 square feet total.