Commercial Real Estate landlords are currently required to disclose in their lease whether the property to be leased has been inspected by a Certified Access Specialist ("CASp") and if so, whether the property has or has not been determined to meet all applicable construction related accessibility standards.
In part 1 of this 3 part blog, we reviewed steps needed to understand what you own or have inherited. Now that you have an understanding of the property, you may have decided to keep the property and operate it for income purposes. This blog will review issues relating to owning and operating the property.
Many of our clients are multi-generational property owners; sometimes the junior family members are involved in the business and are ready to step into ownership of the commercial real estate. Other times, those who inherit the property have never owned the particular property or commercial properties before. In this 3-part blog series, we will review some key factors and options relating to owning commercial properties. Some of these factors will apply to first time buyers as well. Part 1 will cover briefly the steps needed to understand what you've obtained; Part 2 will cover issues relating to retaining the property; and Part 3 will cover issues relating to selling the property. For all purposes, these posts are intended to apply to commercial properties in all forms, but some of the options may relate to owning residential property for income purposes as well.
As we have noted in our past posts, it appears that the commercial real estate market in Southern California has come back. And with such real estate at a premium, large private equity groups are purchasing warehouses, vacant retail locations and office buildings ostensibly with the anticipation that values will consistently increase.
There's some truth to the old adage "hope springs eternal." In most regions of the country, this is associated with the changing of winter to spring and the optimism that comes with it. Even though it is spring time for most of the year in our region, the optimism for the commercial real estate market continues.
Last week, a social media post regarding a commercial real estate lease has gone viral. Yes, you read that correctly, a social media post regarding a commercial real estate lease went viral (over 1,800 comments and 2.5 million views). I never thought I'd see that day. With that said, it's understandable based on the interesting facts of this story.
To the untrained eye, a commercial real estate transaction should seem simple. A business sees an ideal location, finds out how much it would cost to run their operations from the location, negotiates a price with the owner, and the transaction concludes.
In a prior post, we noted how foreign real estate investment was likely to increase in 2016 because market for commercial properties was such that opportunities would be difficult to pass up. This, combined with Congress relaxing tax requirements for foreign investors would likely spur additional interest in markets where redevelopment projects are poised to generate a new round of wealth.
The AIR Standard Form leases for commercial leasing are common. While there are advantages to using the lease for both parties, there are also risk that the parties should be prepared to address. This multi-series blog will focus on areas of the AIR Form lease of which tenants should be warry. Having an attorney assist in negotiating changes or modifications to the AIR Form Commercial Lease may provide added protections to you.