Commercial Real Estate Transactions

Commercial real estate transactions aren’t totally unlike residential real estate transactions. They have similar stages and contracts to sign, but the restrictions and stipulations of those contracts require a lawyer to have a different kind of experience. Finding all the missing clauses or secret loopholes that the other party may purposely leave out or add is a different skill. It’s arguably just as, if not more important, to have an attorney for a commercial real estate transaction as a residential real estate transaction because there’s more to lose.

Losing your home is a terrible situation, but finding yourself unable to operate your business will lead to you being unable to pay your workers or yourself. This will lead to not just one, but potentially multiple people being unable to support themselves. For this reason, you cannot risk being without an attorney during your real estate transactions. Even a minor, unintentional mistake can lead to the contract being null and void, and a whole transaction falling through. The risk isn’t solely on the potential tenant. The landlord is at risk of a financial loss if they lose tenants since leasing their property is their business.

For that reason, you don’t want a real estate attorney who’s only experienced in residential real estate, but a team of attorneys with experience in commercial real estate. The real estate attorneys at Tressler & Associates have the experience you need.

What is Considered a Commercial Real Estate Transaction?

A commercial real estate transaction includes the purchase or sale of any piece of real estate for a business purpose. If you plan to purchase a residential location and turn it into a commercial property, that would not count as a commercial real estate transaction. Purchasing a property with multiple residential properties that the owner collects money from would be considered a commercial real estate transaction. This would be purchasing the right to be the landlord of the property.

Properties that constitute a commercial real estate transaction rather than a residential one include:

• Apartments: A building with more than four living units is considered an apartment building and a type of business.
• Hotels: This is separate from apartments because the living units are intended to be temporary rather than permanent.
• Storage Locations/Warehouses: Storage spaces for businesses or private persons are a business. Contracts must take into account what will happen to clients/partners storing anything in said warehouse if necessary.
• Factories: These locations have safety protocols that new owners need to be aware of in order to complete a purchase.
• Offices: Similarly to a factory, there are safety and operational protocols that any new owner must follow upon purchase.
• Land: Empty land without a residential house is assumed to be commercial property in most cases. It’s not uncommon to purchase empty plots of land through a commercial real estate transaction, before building a residential home.
• Retail Locations: This would include shops, restaurants, and places that provide a service.

How Can a Commercial Real Estate Attorney Help?

Your attorney is always supposed to protect your interests, and when your interests are the longevity and sustainability of your business, you want your interests to be as safe as can be. In a commercial real estate transaction, an attorney will do this by:

• Reviewing and overseeing all the necessary paperwork. You are not expected to know and understand everything you need to sign and have the other party sign. We know that and will present it to you. Anything the other party prepares we will review to make sure it’s not leaning unfairly out of your favor.
• Negotiating on your behalf. When it comes to certain transactions, you will inherit other contracts and clauses from the old owner. This is common in any situation where you purchase a property with tenants or are the tenant after a property purchase.
• Explaining each contract and aspect of the transaction in detail. We don’t expect any non-lawyer to trust us blindly. We will explain the transaction process as it happens and what we’re doing to help you. This way, you can feel confident in our ability and in your new real estate purchase.
• Conducting inspections on the property. The value of the property directly affects the price. Whether you are the seller or buyer, you want the most accurate information about the property’s value. For that information, we will conduct inspections.

Contact Tressler & Associates for Help

Before you begin your commercial real estate transaction, make sure you have the right attorneys at your side. Don’t put your business, your livelihood, and your employees’ livelihoods at risk by going without an attorney or going with the wrong attorney. To learn more about how our real estate attorneys have the legal experience you need, contact us today.